Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Adobe Inc., FCFE calculation
US$ in millions
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).
The analysis of the annual financial data reveals positive trends in the company's cash flow metrics over the observed periods.
- Net Cash Provided by Operating Activities
- This metric shows consistent growth throughout the years. Starting at $4,422 million in 2019, it increased steadily each year, reaching $8,056 million in 2024. The most notable increments appeared between 2019 and 2020 (+$1,305 million) and between 2023 and 2024 (+$754 million). Although there was a slight dip in 2023 compared to 2022 (-$536 million), the overall trend indicates robust operational cash generation capacity.
- Free Cash Flow to Equity (FCFE)
- Free cash flow available to equity holders exhibited a similar upward trend, climbing from $4,027 million in 2019 to $9,870 million in 2024. The increases were generally consistent, with the exception of 2023, where FCFE declined to $6,442 million from $7,396 million in 2022. The jump from 2023 to 2024 was particularly significant, with an increase of $3,428 million, indicating improved cash availability for equity stakeholders in the most recent year.
Overall, both operating cash flow and free cash flow to equity demonstrate strong growth, suggesting improving cash generation efficiency. The minor decline observed in 2023 merits further investigation, but the subsequent rebound in 2024 underscores the company's resilience and capacity to enhance shareholder value through cash flow management.
Price to FCFE Ratio, Current
Adobe Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 424,200,000 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 9,870) |
| FCFE per share | 23.27 |
| Current share price (P) | 363.35 |
| Valuation Ratio | |
| P/FCFE | 15.62 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Accenture PLC | 18.55 |
| Cadence Design Systems Inc. | 29.77 |
| CrowdStrike Holdings Inc. | 111.67 |
| Fair Isaac Corp. | 39.55 |
| International Business Machines Corp. | 23.05 |
| Intuit Inc. | 45.90 |
| Microsoft Corp. | 50.12 |
| Oracle Corp. | 124.49 |
| Palantir Technologies Inc. | 293.84 |
| Palo Alto Networks Inc. | 60.45 |
| Salesforce Inc. | 22.78 |
| ServiceNow Inc. | 57.58 |
| Synopsys Inc. | 71.78 |
| Workday Inc. | 27.25 |
| P/FCFE, Sector | |
| Software & Services | 46.21 |
| P/FCFE, Industry | |
| Information Technology | 46.41 |
Based on: 10-K (reporting date: 2024-11-29).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Adobe Inc., historical P/FCFE calculation, comparison to benchmarks
| Nov 29, 2024 | Dec 1, 2023 | Dec 2, 2022 | Dec 3, 2021 | Nov 27, 2020 | Nov 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 435,300,000 | 452,000,000 | 457,800,000 | 471,700,000 | 478,700,000 | 482,130,975 | |
| Selected Financial Data (US$) | |||||||
| Free cash flow to equity (FCFE) (in millions)2 | 9,870) | 6,442) | 7,396) | 6,882) | 5,302) | 4,027) | |
| FCFE per share3 | 22.67 | 14.25 | 16.16 | 14.59 | 11.08 | 8.35 | |
| Share price1, 4 | 408.50 | 596.10 | 344.38 | 499.91 | 458.08 | 350.00 | |
| Valuation Ratio | |||||||
| P/FCFE5 | 18.02 | 41.83 | 21.32 | 34.26 | 41.36 | 41.90 | |
| Benchmarks | |||||||
| P/FCFE, Competitors6 | |||||||
| Accenture PLC | 23.91 | 21.01 | 17.87 | 25.76 | 19.01 | 19.50 | |
| Cadence Design Systems Inc. | 24.08 | 71.40 | 33.41 | 36.31 | 45.86 | — | |
| CrowdStrike Holdings Inc. | 85.82 | 42.65 | 99.63 | 41.38 | 880.68 | — | |
| Fair Isaac Corp. | 53.56 | 49.48 | 10.12 | 12.69 | 38.46 | 32.51 | |
| International Business Machines Corp. | 20.90 | 9.97 | 11.97 | 48.45 | 9.43 | — | |
| Intuit Inc. | 38.43 | 38.74 | 13.86 | 86.74 | 17.36 | 34.61 | |
| Microsoft Corp. | 42.11 | 43.32 | 36.73 | 42.54 | 42.74 | 30.77 | |
| Oracle Corp. | 48.38 | 15.47 | — | 8.36 | 6.27 | — | |
| Palantir Technologies Inc. | 256.11 | 74.28 | 96.89 | 198.12 | — | — | |
| Palo Alto Networks Inc. | 52.90 | 79.75 | 29.54 | 32.91 | 8.11 | 46.21 | |
| Salesforce Inc. | 38.33 | 31.06 | 16.56 | 49.52 | 50.40 | — | |
| ServiceNow Inc. | 61.82 | 58.19 | 44.44 | 64.54 | 49.83 | — | |
| Synopsys Inc. | 63.08 | 57.04 | 33.41 | 40.55 | 45.07 | 77.64 | |
| Workday Inc. | 36.59 | 19.79 | 49.17 | 40.57 | 74.21 | — | |
| P/FCFE, Sector | |||||||
| Software & Services | 39.97 | 32.86 | 30.85 | 33.71 | 26.75 | — | |
| P/FCFE, Industry | |||||||
| Information Technology | 36.66 | 33.16 | 26.84 | 27.24 | 23.37 | — | |
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).
1 Data adjusted for splits and stock dividends.
3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 9,870,000,000 ÷ 435,300,000 = 22.67
4 Closing price as at the filing date of Adobe Inc. Annual Report.
5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 408.50 ÷ 22.67 = 18.02
6 Click competitor name to see calculations.
The financial data reveals notable fluctuations and trends in the share price, free cash flow to equity (FCFE) per share, and the price-to-FCFE ratio for the periods observed.
- Share Price
- The share price initially increased from $350 in 2019 to a peak of $499.91 in 2021, followed by a sharp decline to $344.38 in 2022. The price then surged significantly to $596.10 in 2023 before falling again to $408.50 in 2024. This pattern indicates considerable volatility in market valuation over the six-year period.
- FCFE per Share
- FCFE per share showed consistent growth from $8.35 in 2019 to $16.16 in 2022, indicating improving free cash flow generation available to shareholders. A slight dip occurred in 2023 to $14.25, but a strong rebound was evident in 2024 with FCFE rising to $22.67. Overall, FCFE per share demonstrates a generally upward trend with some volatility in the latter years.
- Price-to-FCFE Ratio (P/FCFE)
- The P/FCFE ratio decreased steadily from 41.9 in 2019 to 21.32 in 2022, reflecting a narrowing premium of share price relative to free cash flow, potentially signaling the market's adjustment to underlying cash flow growth. However, in 2023, the ratio spiked back to 41.83, implying a sharp increase in price valuation relative to cash flow, followed by another decline to 18.02 in 2024, the lowest in the observed period. This suggests fluctuating market sentiment and valuation multiples in response to the company's cash flow performance and external market conditions.
In summary, the company experienced significant variability in its share price and valuation multiples, while its underlying free cash flow generation showed a general upward trend. The oscillations in P/FCFE ratio reflect changing investor perceptions of value, possibly influenced by broader economic or sector-specific factors. The data indicates a dynamic financial environment where cash flow growth and market sentiment interacted notably over time.