Fundamentals snapshot
ADBE · NMS · Technology · Software - Application
Current price
$246.41
52-week range
$224.13 - $421.48
Market cap
$99.60B
One-glance verdict
Fair-value range $451.29 – $698.27 (cautious → optimistic — tap the ? for the math)
Wall Street consensus: $329.81 (-41.3% lower than our fair-value estimate)
Buy below $449.75 for a 20% safety cushion
Balance sheet
Net cash $229.00M. Interest coverage shows how many times profit covers the interest bill.
What stands out
Quick scan of the biggest positives and negatives from the detailed checklist below.
View 1 more in details ↓What this company does
Adobe sells industry-standard creative software like Photoshop and marketing tools to businesses, mostly through subscriptions. This creates predictable recurring revenue (income that comes in regularly) and a strong ecosystem (a family of products that work well together, making it hard for customers to switch). Because its software is essential for many creative and marketing professionals, this subscription model provides a steady and reliable business.
Adobe was started in 1982 by two computer scientists from Xerox who wanted to make it easier to print text and graphics exactly as they appeared on a screen. Their first major product, PostScript, was a key ingredient in the rise of desktop publishing when Apple used it in their printers. Over the years, Adobe created or bought many of the programs that are now essential for creative professionals, including Photoshop for photo editing, Illustrator for graphics, and Premiere for video editing. A huge turning point was the creation of the PDF (Portable Document Format), which allowed documents to look the same on any computer. More recently, the company shifted from selling software in a box to a subscription model called Creative Cloud, where users pay a recurring fee for access to a whole suite of tools.
Adobe makes software that millions of people, from individual artists to giant corporations, use to create and manage digital content. You've likely encountered their work if you've ever seen a digitally edited photo, watched a special effect in a movie, or opened a PDF document. Their most famous products are tools for creative tasks like editing photos in Photoshop, designing logos in Illustrator, or editing videos in Premiere Pro. They also provide the standard for digital documents with Adobe Acrobat and the PDF format. Beyond creative tools, Adobe offers a large suite of products for businesses to manage their marketing, advertising, and customer experience online.
This is Adobe's largest and most well-known business, making up the vast majority of its revenue. It includes the Creative Cloud, a subscription service that gives users access to a bundle of famous software like Photoshop, Illustrator, InDesign (for page layouts), and Premiere Pro (for video editing). This segment also includes Document Cloud, which is centered around Adobe Acrobat and the PDF format for creating, editing, and signing digital documents. Customers are typically creative professionals, students, and businesses of all sizes who pay a recurring monthly or annual fee to use these tools and receive updates.
This part of the company focuses on software and services for businesses to manage their online marketing, advertising, and sales. It provides a platform called Adobe Experience Cloud that helps companies understand their customers, create and manage marketing campaigns, and analyze website traffic. For example, a large retail company might use these tools to personalize the ads you see on a website or to understand how customers navigate their online store. This segment is a significant and growing part of Adobe's business, serving large enterprise customers who pay for subscriptions to these powerful marketing tools.
This is the smallest of Adobe's business segments. It includes a variety of specific products, such as tools for creating e-learning materials, publishing technical documents, and web conferencing. This segment also houses Adobe's advertising solutions, which help businesses manage and optimize their ad campaigns across different channels. The customers for these products are often businesses with very specific needs in technical communication or online advertising.
Adobe is heavily focused on integrating Artificial Intelligence (AI) into its products, most notably through its AI model called Firefly. The goal is to make creative and marketing tasks easier and faster, for example by allowing a user to generate images with a simple text description inside of Photoshop. The company is also working to connect its creative tools more closely with its marketing and business tools, creating a seamless workflow for companies to create, manage, and deliver digital content. Another key priority is expanding its customer base beyond just creative professionals by offering simpler, web-based tools like Adobe Express to attract a wider audience of students and small businesses.
Price history
Earnings history
Click any quarter to read the call summary and what the numbers say.
Is it cheap or expensive?
Wall Street consensus is the average analyst price target: $329.81 (-41.3% lower than our fair-value estimate).
Buy below $449.75 for a 20% safety cushion. That means buying at least 20% below our fair value, as a buffer in case our estimate turns out too rosy.
Our most-likely fair value is $562.18 a share — about 128.1% above today's price of $246.41, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Net cash $229.0M - more cash than debt. Interest coverage 33.1x.
Adobe Inc.'s profit covers its interest bill about 33.1 times over. which is stronger than most peers shown here.
Total debt $6.67B Interest coverage 33.10x This is the baseline the peer rows are being compared against.
Total debt $125.43B Interest coverage 53.89x +63% vs ADBE Carries about 1.6x more debt cushion than ADBE.
Total debt $162.16B Interest coverage 5.05x -85% vs ADBE Carries about 6.6x less debt cushion than ADBE.
Total debt $2.72B Interest coverage 25.27x -24% vs ADBE Carries about 1.3x less debt cushion than ADBE.
What you should know
The numbers
Tap any ? icon to learn what it means.
Valuation
Profitability
Health
Growth
Cash flow
Dividend
Metric explainer
Debt comparison
What you should know