Adobe Inc. — Software - Application. Scored on the same transparent 7-signal model behind the daily rankings.
★
ADBE
Adobe Inc. · Software - Application
FCF$10.3bA-
Rev+10.5%B
D/E0.61C+
P/E12.7xA
PEG0.60A-
89.2Score
$222.65$88.5B
1Y Target$272.48Analyst consensus · 33 analysts
5Y Target$343.99Compound horizon
10Y Target$441.16Long-dated conviction
FCF$10.3bTTMA-
FCF $10.3b — top-quartile, exceptional for any sector
Rev+10.5%TTM YoYB
Revenue +10.5% — at or above S&P median
D/E0.61C+
D/E 0.61 — above the Technology debt median (≈75th pctile)
P/E12.7xA
P/E 12.7 — cheapest decile in Technology (≈10th pctile)
PEG0.60A-
PEG 0.60 — strong; Lynch's preferred zone
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 89.2
Quality0.92
Growth0.85
Value0.90
Why this score
Buying back stock
Durable high returns
Entry · Margin of safety
52-week rangeNear 52-week low
41% off the 12-month high
vs DCF fair value36% belowest. fair value ~$350
Quality signals · context only
Gross profitability75% · Agross profit ÷ total assets (Novy-Marx)
ROIC47.1% · Areturn on invested capital — not score-weighted
Why now
Adobe's entrenched position in creative and customer experience workflows, evidenced by its Digital Media and Digital Experience segments, makes its current valuation a compelling entry point. With a remarkably low P/E of 12.7 and a PEG Ratio of 0.6, the market is significantly undervaluing a company delivering a profit margin of 28.7% and 10.5% revenue growth. The crux rests on the indispensable nature of its subscription-based tools, ensuring persistent cash flow and market leadership.
Moat
Adobe's durable edge stems from the high switching costs embedded in its Digital Media segment, which serves a vast ecosystem of photographers, video editors, and graphic designers with industry-standard tools. The company's exceptional ROE of 62.8% is a direct result of this pricing power and the deep integration of its products, making it incredibly difficult for competitors to dislodge users from its comprehensive creative and experience platforms.
Risk
The primary risk to Adobe lies in the potential for intensified competition within its core Digital Media and Digital Experience segments, which could pressure its otherwise robust 10.5% revenue growth. While its P/E of 12.7 appears low, a high Beta of 1.43 suggests sensitivity to broader market downturns, potentially exacerbating any growth deceleration. A sustained decline in subscription renewals within its enterprise Digital Experience segment would confirm the bear case and signal fundamental erosion.
Horizon
1-3 yr $272.48 (33-analyst consensus) — multiple re-rating thesis requires a catalyst. 5 yr $343.99 at ~9% CAGR — dividend + buyback compounding. 10 yr $441.16 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
$1,781
3.6% of portfolio
Stop price
$166.99
25% below $222.65
$ at risk if stopped
$445.30
budget $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.
Adobe Inc. (ADBE): score, valuation & FAQ
Adobe Inc. (ADBE) is a Software - Application company that scores 89.2 out of 100 on the Bull Rankings quality-growth model — a strong reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are P/E (A), FCF (A-) and PEG (A-). On valuation, ADBE sits about 36% below our discounted-cash-flow fair value (a margin of safety).
Is ADBE a good stock to buy?
Bull Rankings scores ADBE 89.2 out of 100 on its quality-growth model, which is a strong reading. That is driven by P/E (A), FCF (A-) and PEG (A-). A score is a quantitative screen of Adobe Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does ADBE score 89.2 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). ADBE earns its highest marks on P/E (A), FCF (A-) and PEG (A-). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is ADBE overvalued or undervalued?
Based on $222.65, ADBE sits about 36% below our discounted-cash-flow fair value (a margin of safety). It trades at a 12.7x× P/E (graded A). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in ADBE?
The primary risk to Adobe lies in the potential for intensified competition within its core Digital Media and Digital Experience segments, which could pressure its otherwise robust 10.5% revenue growth. While its P/E of 12.7 appears low, a high Beta of 1.43 suggests sensitivity to broader market downturns, potentially exacerbating any growth deceleration. A sustained decline in subscription renewals within its enterprise Digital Experience segment would confirm the bear case and signal fundamental erosion.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.