Adobe Inc. (NASDAQ:ADBE)

The analyzed financial data reveals notable trends in share price, operating profit per share, and the price-to-operating profit ratio over a nearly two-decade period.

Share Price

The share price exhibits substantial growth from 38.8 US$ in early 2006 to a peak of 599.1 US$ in early 2024, despite fluctuations. Initial years show moderate increases with a significant dip to 19.7 US$ around early 2009, likely reflecting broader market conditions. From 2010 onward, the share price generally trends upward, with steep rises occurring between 2013 and 2021, reaching highs above 450 US$. There is a noticeable decrease after 2023, falling from approximately 596.1 US$ to 408.5 US$ in early 2025, indicating some recent volatility or correction.

Operating Profit per Share

The operating profit per share demonstrates a consistent upward trend throughout the period. Starting at 1.21 US$ in 2006, it experiences gradual growth with minor fluctuations, reaching above 15 US$ by early 2025. This increase indicates improving operational efficiency or profitability on a per-share basis. There is a slight dip between 2009 and 2010, mirroring the share price decline, but the overall growth trajectory remains strong after that period.

Price-to-Operating Profit Ratio (P/OP)

The P/OP ratio shows significant variability over time, reflecting changing market valuations relative to operating profits. Early years present ratios between approximately 10 and 41, with an outlier high of 86.32 in 2014. Elevated P/OP ratios, especially between 2010 and 2021, suggest periods when the market valued the company's profitability highly, potentially due to growth expectations. The ratio decreases notably in the most recent years, falling from the 40s down to about 26 by 2025, indicating either a market correction or a relative increase in operating profit compared to share price.

Overall, the data indicates sustained growth in fundamental profitability alongside notable appreciation in market valuation, though market sentiment has shown variability. The recent decline in share price coupled with a lower P/OP ratio could imply a market reassessment relative to the company’s operating performance.