★
ADBE
Adobe Inc. · Software - Application
FCF$10.3bA-
Rev+12.0%B+
D/E0.58B+
P/E14.3xB+
PEG0.69A-
98Score
$244.761Y Target$327.28Near-term target
5Y Target$327.54Compound horizon
10Y Target$418.09Long-dated conviction
FCF$10.3bTTM · 02/26A-
FCF $10.3b — top-quartile, exceptional for any sector · TTM computed from 4 most-recent quarters (TTM · 02/26).
Rev+12.0%TTM YoYB+
Revenue +12.0% — above sector median, healthy trajectory
D/E0.58B+
D/E 0.58 — healthy leverage, well below danger zone
P/E14.3xB+
P/E 14.3 — at or below S&P median, reasonable
PEG0.69A-
PEG 0.69 — strong; Lynch's preferred zone
Why now
Software - Application · market cap $98.9b. Down 42% from 52-week high of $421.48 — deep drawdown territory. Revenue growing +12%, comfortably above the S&P median. PEG 0.69 — paying under fair value for the growth rate. 34 sell-side analysts rate this a Hold with a mean 1-yr target of $327.28 (implying +34% upside).
Moat
Net margin 29% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. ROE 59% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 143% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk
Down 42% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Beta 1.42 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return. Software — competitive moat is durable until it isn't; watch net revenue retention, gross margin trends, and any new market entrant with a fundamentally lower price point.
Horizon
1-3 yr $327.28 (34-analyst consensus) — multiple re-rating thesis requires a catalyst. 5 yr $327.54 at ~6% CAGR — dividend + buyback compounding. 10 yr $418.09 if the moat survives secular pressure.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Position sizing · ADBE
Shares to buy
8
Position size
$1,958
3.9% of portfolio
Stop price
$183.57
25% below $244.76
$ at risk
$500.00
1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.