Stock Analysis on Net
Stock Analysis on Net
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Adobe Inc. (NASDAQ:ADBE)

Price to FCFE (P/FCFE)

Intermediate level

Free Cash Flow to Equity (FCFE)

Adobe Inc., FCFE calculation

US$ in thousands

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12 months ended: Nov 29, 2019 Nov 30, 2018 Dec 1, 2017 Dec 2, 2016 Nov 27, 2015 Nov 28, 2014
Net income 2,951,458  2,590,774  1,693,954  1,168,782  629,551  268,395 
Net noncash charges 1,493,290  495,104  828,184  635,731  508,113  569,782 
Changes in operating assets and liabilities, net of acquired assets and assumed liabilities (22,935) 943,426  390,715  395,215  331,838  449,305 
Net cash provided by operating activities 4,421,813  4,029,304  2,912,853  2,199,728  1,469,502  1,287,482 
Purchases of property and equipment (394,479) (266,579) (178,122) (203,805) (184,936) (148,332)
Proceeds from sale of property —  —  —  —  57,779  — 
Proceeds from debt issuance, net of costs —  2,248,342  —  —  980,452  — 
Free cash flow to equity (FCFE) 4,027,334  6,011,067  2,734,731  1,995,923  2,322,797  1,139,150 

Based on: 10-K (filing date: 2020-01-21), 10-K (filing date: 2019-01-25), 10-K (filing date: 2018-01-22), 10-K (filing date: 2017-01-20), 10-K (filing date: 2016-01-19), 10-K (filing date: 2015-01-20).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Adobe Inc.’s equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Adobe Inc.’s FCFE increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level.

Price to FCFE Ratio, Current

Adobe Inc., current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding 479,718,983
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands) 4,027,334 
FCFE per share 8.40
Current share price (P) 488.51
Valuation Ratio
P/FCFE 58.19
Benchmarks
P/FCFE, Competitors1
Alphabet Inc. 32.44
Autodesk Inc. 37.41
Facebook Inc. 35.41
International Business Machines Corp. 3.78
Intuit Inc. 16.36
Microsoft Corp. 43.66
Oracle Corp. 6.64
salesforce.com inc. 74.53
ServiceNow Inc. 103.38
P/FCFE, Sector
Software & Computer Services 31.83
P/FCFE, Industry
Technology 28.64

Based on: 10-K (filing date: 2020-01-21).

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

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Nov 29, 2019 Nov 30, 2018 Dec 1, 2017 Dec 2, 2016 Nov 27, 2015 Nov 28, 2014
No. shares of common stock outstanding1 482,130,975 487,725,915 491,578,529 494,078,475 498,330,407 498,314,061
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)2 4,027,334  6,011,067  2,734,731  1,995,923  2,322,797  1,139,150 
FCFE per share3 8.35 12.32 5.56 4.04 4.66 2.29
Share price1, 4 350.00 244.95 197.84 110.71 89.18 71.49
Valuation Ratio
P/FCFE5 41.90 19.87 35.56 27.41 19.13 31.27
Benchmarks
P/FCFE, Competitors6
Alphabet Inc. 32.39 34.99 31.54 22.63 29.29
Autodesk Inc. 41.92 609.14 197.14 11.80 22.14
Facebook Inc. 28.91 30.97 32.08 33.48 52.13
International Business Machines Corp. 4.39 11.07 8.55 10.60 9.60
Intuit Inc. 34.61 29.29 42.22 21.01 18.76
Microsoft Corp. 30.77 37.57 8.86 10.12 10.15
Oracle Corp. 22.31 10.78 8.16 11.68 5.69
salesforce.com inc. 29.09 52.51 25.44 50.00 164.03
ServiceNow Inc. 74.57 327.16 22.36 410.08 38.70
P/FCFE, Sector
Software & Computer Services 25.41 28.10 15.99 16.26 14.74
P/FCFE, Industry
Technology 21.30 23.80 13.64 12.91 10.32

Based on: 10-K (filing date: 2020-01-21), 10-K (filing date: 2019-01-25), 10-K (filing date: 2018-01-22), 10-K (filing date: 2017-01-20), 10-K (filing date: 2016-01-19), 10-K (filing date: 2015-01-20).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2019 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 4,027,334,000 ÷ 482,130,975 = 8.35

4 Closing price as at the filing date of Adobe Inc.’s Annual Report.

5 2019 Calculation
P/FCFE = Share price ÷ FCFE per share
= 350.00 ÷ 8.35 = 41.90

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Adobe Inc.’s P/FCFE ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.