Fair value · ADOBE INC. (ADBE) · updated 2026-09-12 · from 10-K FY2025
ADOBE trades at $252.04. That price implies a P/E of 14.4×, 15.3% yearly EPS growth for a decade, 10.5× EV/EBITDA and a 10.0% free-cash-flow yield.
Cboe · delayed 15 min · as of 05:02 ET
Are those assumptions reasonable? Use ADBE’s filed growth history and the AI chat to decide, then set your own inputs below — the range you build is yours.
What the price implies
- P/E
- 14.4×
- EPS growth
- 15.3%
- EV/EBITDA
- 10.5×
- FCF yield
- 10.0%
price ÷ trailing EPS
per year for 10 years, discounted at 10%
(market cap + net debt) ÷ EBITDA
free cash flow ÷ enterprise value (10.0× EV/FCF)
Prices and market caps: Cboe delayed data, at least 15 minutes delayed. Not real-time. Fundamentals from company filings. This price: Cboe · delayed 15 min · as of 05:02 ET.
With preset inputs the methods land at $213 – $476 (presets are filed history and our reference settings, not a recommendation)
How each method got its number
Bear, base and bull are the 25th, 50th and 75th percentile of the methods that produced a usable estimate. Weights say how much a method is trusted for this sector; they do not change the range.
| Method | Estimate | vs price | Weight | Why this method |
|---|---|---|---|---|
Graham Number Low weight Benjamin Graham’s 1949 rule of thumb: √(22.5 × EPS × book value). It punishes asset-light companies, so it reads low for big tech. | $107 | -58% | Low weight | Benjamin Graham’s 1949 rule of thumb: √(22.5 × EPS × book value). It punishes asset-light companies, so it reads low for big tech. |
Earnings Power Value Medium weight Greenwald’s Earnings Power Value: what current earnings are worth if they never grow. Everything above it is what you pay for growth. | $185 | -27% | Medium weight | Greenwald’s Earnings Power Value: what current earnings are worth if they never grow. Everything above it is what you pay for growth. |
EV/EBITDA Medium weight Values the whole business at 10× EBITDA and divides by the share count. A mid-cycle industrial multiple; fast growers trade far above it. | $241 | -4% | Medium weight | Values the whole business at 10× EBITDA and divides by the share count. A mid-cycle industrial multiple; fast growers trade far above it. |
DCF High weight Projects free cash flow for the coming years and discounts it back to today. The most complete method, and the most sensitive to the growth and discount-rate assumptions. | $280 | +11% | High weight | Projects free cash flow for the coming years and discounts it back to today. The most complete method, and the most sensitive to the growth and discount-rate assumptions. |
P/E vs sector Medium weight Trailing diluted EPS times the sector median P/E. What the stock would be worth if the market priced it like an average peer. | $443 | +76% | Medium weight | Trailing diluted EPS times the sector median P/E. What the stock would be worth if the market priced it like an average peer. |
EV/FCF Medium weight 20× free cash flow per share, i.e. a 5% cash yield. Reads low for companies the market expects to keep growing. | $508 | +102% | Medium weight | 20× free cash flow per share, i.e. a 5% cash yield. Reads low for companies the market expects to keep growing. |
Growth-trajectory DCF Medium weight A two-stage DCF that grows earnings at the company’s own EPS trend, then fades to the industry’s long-run rate. Two-stage DCF using weighted EPS CAGR and industry median terminal rate | $719 | +185% | Medium weight | A two-stage DCF that grows earnings at the company’s own EPS trend, then fades to the industry’s long-run rate. |
P/B vs sector Low weight Sector median price-to-book times book value per share. Works for banks and asset-heavy businesses, says little about software. P/B comparable is optional for non-financial companies | No estimate | Low weight | Sector median price-to-book times book value per share. Works for banks and asset-heavy businesses, says little about software. | |
What this means
- A range of $213 to $476 means the methods disagree by more than 2×. They measure different things — cash the business earns today versus growth the market expects tomorrow — so treat the range as a rough guide, not a target.
- The base case, $280, is the median of the 7 methods with data. It assumes ADOBE’s current margins, cash generation and share count persist; it does not price in a new product cycle, a recession or a buyback surge.
- The number moves when the filings move. The next 10-Q replaces the oldest quarter in the trailing-twelve-month EPS and cash-flow inputs; the last one (Q2 FY2026) was filed 2026-06-15. The price changes every day; the fair value only changes with the filings.
The filing behind these numbers
ADOBE INC.- Revenue
- $23.8B
- Diluted EPS
- $16.70
- Free cash flow
- $9.9B
- operating cash flow − capital expenditure
- Diluted shares
- 427.0M
- weighted average
10-K FY2025 · fiscal year ended 2025-11-28 · filed 2026-01-15 · accession 0000796343-26-000003
Trailing-twelve-month EPS also uses the quarterly 10-Qs through Q2 FY2026 (filed 2026-06-15).
Open this filing on sec.gov