Stock Analysis on Net

Adobe Inc. (NASDAQ:ADBE)

$24.99

Price to Sales (P/S)
since 2005

Microsoft Excel

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Calculation

Adobe Inc., P/S, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2024-11-29), 10-K (reporting date: 2023-12-01), 10-K (reporting date: 2022-12-02), 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29), 10-K (reporting date: 2018-11-30), 10-K (reporting date: 2017-12-01), 10-K (reporting date: 2016-12-02), 10-K (reporting date: 2015-11-27), 10-K (reporting date: 2014-11-28), 10-K (reporting date: 2013-11-29), 10-K (reporting date: 2012-11-30), 10-K (reporting date: 2011-12-02), 10-K (reporting date: 2010-12-03), 10-K (reporting date: 2009-11-27), 10-K (reporting date: 2008-11-28), 10-K (reporting date: 2007-11-30), 10-K (reporting date: 2006-12-01), 10-K (reporting date: 2005-12-02).

1 US$

2 Data adjusted for splits and stock dividends.

3 Closing price as at the filing date of Adobe Inc. Annual Report.


The analysis of the financial indicators over the given periods reveals several noteworthy trends regarding valuation, revenue performance, and market sentiment.

Share Price
The share price exhibited initial volatility with a decline from 38.8 US$ in early 2006 to a low of 19.7 US$ in early 2009. Following this downturn, there was a pronounced and sustained growth phase, with the share price rising significantly to peak at 596.1 US$ by early 2024 before dropping to 408.5 US$ in early 2025. This trajectory suggests a recovery and expansion phase post-2009, with strong market confidence, followed by a recent correction or volatility.
Sales per Share
Sales per share demonstrated consistent year-over-year growth throughout the entire period. Starting at 3.28 US$ in 2006, this metric increased steadily to 49.4 US$ by 2025. The growth in sales per share indicates ongoing improvement in the company’s revenue-generating ability on a per-share basis, evidencing effective business expansion or enhanced operational performance without any observable decline across the examined years.
Price-to-Sales (P/S) Ratio
The P/S ratio showed considerable fluctuation. Initially, it declined from 11.84 in 2006 to a trough of 2.88 in 2009, coinciding with the share price decrease and possibly reflecting undervaluation or market pessimism during that period. Thereafter, the ratio generally increased, reaching several peaks above 13 between 2018 and 2024, reflecting increasing market valuation relative to sales. Notably, the ratio dropped sharply to 8.27 in 2025 from a higher level the year before, which may indicate a market revaluation or a shift in investor sentiment despite the consistent sales increase.

Overall, the data depicts a company that endured a period of market undervaluation coinciding with global economic challenges around 2009 but subsequently experienced robust growth in both share price and sales per share, signaling strong operational progress. The fluctuations in the P/S ratio suggest changing market perceptions of the company's growth prospects or risk profile over time, with a recent decline indicating less aggressive valuation relative to sales. The recent drop in share price alongside a still-increasing sales figure raises potential questions about market expectations or external factors affecting investor confidence.


Comparison to Competitors

Adobe Inc., P/S, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2024-11-29), 10-K (reporting date: 2023-12-01), 10-K (reporting date: 2022-12-02), 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29), 10-K (reporting date: 2018-11-30), 10-K (reporting date: 2017-12-01), 10-K (reporting date: 2016-12-02), 10-K (reporting date: 2015-11-27), 10-K (reporting date: 2014-11-28), 10-K (reporting date: 2013-11-29), 10-K (reporting date: 2012-11-30), 10-K (reporting date: 2011-12-02), 10-K (reporting date: 2010-12-03), 10-K (reporting date: 2009-11-27), 10-K (reporting date: 2008-11-28), 10-K (reporting date: 2007-11-30), 10-K (reporting date: 2006-12-01), 10-K (reporting date: 2005-12-02).


Comparison to Sector (Software & Services)


Comparison to Industry (Information Technology)