Adobe Inc. (ADBE) Stock Analysis — Fair Value, Risk & Moat Rating
NMS · Technology · Software - Application
Is Adobe Inc. a safe investment right now?
Adobe Inc.'s Altman Z-Score of 7.47 places it in the safe zone. Our fair value estimate is $243.33 (Fairly Valued). Moat rating: 3.4/5 stars.
Could Adobe Inc. go bankrupt? Altman Z-Score analysis
Z-Score of 7.47 is above 3.0, indicating the company is financially healthy by this metric.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives ADBE's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | -0.0013 | 1.2 | -0.0 |
| B · Retained Earnings / Total Assets | RE / TA | 1.5376 | 1.4 | 2.15 |
| C · EBIT / Total Assets | EBIT / TA | 0.305 | 3.3 | 1.01 |
| D · Market Cap / Total Liabilities | MCap / TL | 5.8373 | 0.6 | 3.5 |
| E · Revenue / Total Assets | Rev / TA | 0.8058 | 1.0 | 0.81 |
How has ADBE's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 7.66 | Safe |
| 2023 | 7.82 | Safe |
| 2024 | 7.18 | Safe |
| 2025 | 7.47 | Safe |
Source: Calculated from ADBE's latest 10-K filing on SEC EDGAR.
What is Adobe Inc. actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $19.16 | Proprietary blend of reported actuals (1Q actual) + analyst consensus, weighted by α |
| Last Year EPS | $16.70 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $23.48 | 34 analysts consensus |
| Trailing P/E | 14.9x | Current market pricing |
| Fair P/E (β discount) | 12.7x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Accelerating | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $329.28 (34 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does Adobe Inc. have a durable competitive advantage?
Moat rating: 3.4/5.
What makes up ADBE's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 4/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 3/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is ADBE's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | 33.7% | — |
| 2023 | 34.3% | Stable |
| 2024 | 36.0% | Rising |
| 2025 | 50.4% | Rising |
Source: ROIC calculated from SEC EDGAR filings.
Is Adobe Inc.'s dividend safe?
Adobe Inc.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $23.8B | $21.5B | $17.6B | Rising |
| Net Income | $7.1B | $5.6B | $4.8B | Rising |
| Free Cash Flow | $9.9B | $7.9B | $7.4B | Rising |
| Gross Margin | 89.3% | 89.0% | 87.7% | Stable |
Recent events that affect our ADBE analysis
ADBE earnings report scheduled
Upcoming report. Consensus EPS estimate: $5.83. Revenue estimate: $6.45B. Our current Fair Value: $243.33 — a significant beat or miss could shift this estimate.
ADBE analyst consensus: 44% bullish (17 of 39 analysts)
3 Strong Buy, 14 Buy, 18 Hold, 4 Sell, 0 Strong Sell. Consensus target: $329.28 (28.7% upside). Compare with our independent Fair Value: $243.33.
ADBE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ADBE filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
ADBE beat EPS estimates by 3.2%
Reported EPS: $6.06 vs estimate $5.87. Earnings strength supports our Fair Value of $243.33 (4.9% below current price).
ADBE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ADBE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ADBE filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
ADBE beat EPS estimates by 1.9%
Reported EPS: $5.50 vs estimate $5.40. Earnings strength supports our Fair Value of $243.33 (4.9% below current price).
ADBE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ADBE filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
ADBE beat EPS estimates by 2.5%
Reported EPS: $5.31 vs estimate $5.18. Earnings strength supports our Fair Value of $243.33 (4.9% below current price).
ADBE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ADBE filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
ADBE beat EPS estimates by 1.7%
Reported EPS: $5.06 vs estimate $4.97. Earnings strength supports our Fair Value of $243.33 (4.9% below current price).
ADBE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ADBE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ADBE filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
ADBE beat EPS estimates by 2.2%
Reported EPS: $5.08 vs estimate $4.97. Earnings strength supports our Fair Value of $243.33 (4.9% below current price).
ADBE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ADBE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ADBE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ADBE filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
Common questions about Adobe Inc.
What is Adobe Inc. stock price today?
Adobe Inc. (ADBE) stock price is $255.94 as of the latest market close, traded on the NASDAQ exchange.
What does Adobe Inc. do?
Adobe Inc. operates as a technology company worldwide. The Digital Media segment offers products and services that enable individuals, teams, and enterprises to create, publish, and promote content.
What is Adobe Inc. market cap?
Adobe Inc. has a market capitalization of $104.33B, classifying it as a large-cap stock in the Technology sector.
What sector and industry is ADBE in?
Adobe Inc. operates in the Technology sector, specifically within the Software - Application industry. It trades on the NASDAQ under the ticker symbol ADBE.
Is ADBE stock overvalued or undervalued?
Based on our valuation model, Adobe Inc. trades 5.2% above our fair value estimate — potentially overvalued.
- FairValueLabs Fair Value: $243.33
- Current Price: $255.94
- Valuation Zone: Fairly Valued
What is ADBE stock forecast and analyst target price?
Based on 34 Wall Street analysts, the consensus price target for Adobe Inc. is $329.28, implying upside of 28.7% from the current price.
- Analyst High Target: $487.00
- Analyst Low Target: $220.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is Adobe Inc. revenue and earnings growing?
Here are the analyst consensus growth estimates for Adobe Inc.:
- Revenue growth (current year est.): 9.8%
- EPS growth (current year est.): 12.2%
- Revenue growth (next year est.): 9.0%
- EPS growth (next year est.): 12.3%
What are Adobe Inc.'s key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $23.8B | Rising |
| Net Income | $7.1B | Rising |
| Free Cash Flow | $9.9B | Rising |
| Gross Margin | 89.3% | Stable |
What is ADBE's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 14.9x
- Forward P/E (next 12 months est.): 9.7x
- FairValueLabs Fair P/E: 12.7x
How volatile is ADBE stock?
Adobe Inc. has a beta of 1.52, meaning it is significantly more volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does Adobe Inc. have?
Adobe Inc.'s balance sheet shows:
- Total Cash: $6.90B
- Total Debt: $6.67B
- Net Cash Position: $229.0M
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is Adobe Inc.'s free cash flow?
Adobe Inc. generated $9.32B in trailing twelve-month free cash flow (from $10.51B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does Adobe Inc. pay a dividend?
Adobe Inc. does not currently pay a regular dividend to shareholders. The company may be reinvesting all profits back into growth, or it may have suspended its dividend.
Is Adobe Inc. at risk of going bankrupt?
Adobe Inc.'s Altman Z-Score is 7.47, placing it in the safe zone (above 3.0) — bankruptcy risk is low. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does Adobe Inc. have a durable competitive advantage?
Adobe Inc. scores 3.4/5 stars (Narrow moat) in our moat analysis:
- ROIC Stability: 4/5
- Gross Margin Trend: 3/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is ADBE's return on equity (ROE)?
Adobe Inc.'s return on equity is 58.8%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy ADBE stock?
ADBE shares can be purchased through any brokerage account that provides access to the NASDAQ. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol ADBE
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is ADBE a value stock or speculative?
FairValueLabs classifies Adobe Inc. as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.
Who is the CEO of Adobe Inc.?
The current CEO of Adobe Inc. is Mr. Shantanu Narayen.
What is ADBE's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $17.15
- Forward EPS (next 12 months est.): $26.39
- Analyst consensus EPS (this year): $23.48
- Analyst consensus EPS (next year): $26.37
Other Technology companies analyzed by FairValueLabs
FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
ADBE analysis methodology: How we calculate fair value, Z-Scores, and moat ratings