Stock Analysis on Net

Adobe Inc. (NASDAQ:ADBE)

Price to FCFE (P/FCFE) 

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Free Cash Flow to Equity (FCFE)

Adobe Inc., FCFE calculation

US$ in millions

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12 months ended: Dec 3, 2021 Nov 27, 2020 Nov 29, 2019 Nov 30, 2018 Dec 1, 2017 Dec 2, 2016
Net income 4,822  5,260  2,951  2,591  1,694  1,169 
Net noncash charges 2,116  281  1,493  495  828  636 
Changes in operating assets and liabilities, net of acquired assets and assumed liabilities 292  186  (23) 943  391  395 
Net cash provided by operating activities 7,230  5,727  4,422  4,029  2,913  2,200 
Purchases of property and equipment (348) (419) (394) (267) (178) (204)
Proceeds from issuance of debt —  3,144  —  2,248  —  — 
Repayment of debt —  (3,150) —  —  —  — 
Free cash flow to equity (FCFE) 6,882  5,302  4,027  6,011  2,735  1,996 

Based on: 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).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Adobe Inc. 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. FCFE increased from 2019 to 2020 and from 2020 to 2021.

Price to FCFE Ratio, Current

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

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No. shares of common stock outstanding 468,000,000
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 6,882 
FCFE per share 14.71
Current share price (P) 434.34
Valuation Ratio
P/FCFE 29.54
Benchmarks
P/FCFE, Competitors1
Accenture PLC 23.42
International Business Machines Corp. 50.84
Intuit Inc. 73.68
Mastercard Inc. 33.95
Microsoft Corp. 37.25
Oracle Corp.
PayPal Holdings Inc. 20.82
Salesforce Inc. 15.96
ServiceNow Inc. 57.76
Visa Inc. 38.30
P/FCFE, Sector
Software & Services 32.07
P/FCFE, Industry
Information Technology 27.29

Based on: 10-K (reporting date: 2021-12-03).

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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Dec 3, 2021 Nov 27, 2020 Nov 29, 2019 Nov 30, 2018 Dec 1, 2017 Dec 2, 2016
No. shares of common stock outstanding1 471,700,000 478,700,000 482,130,975 487,725,915 491,578,529 494,078,475
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 6,882  5,302  4,027  6,011  2,735  1,996 
FCFE per share3 14.59 11.08 8.35 12.32 5.56 4.04
Share price1, 4 499.91 458.08 350.00 244.95 197.84 110.71
Valuation Ratio
P/FCFE5 34.26 41.36 41.90 19.87 35.56 27.41
Benchmarks
P/FCFE, Competitors6
Accenture PLC 25.76 19.01 19.50 18.11 20.24 18.22
International Business Machines Corp. 48.45 9.43 4.39 11.07 8.55
Intuit Inc. 86.74 17.36 34.61 29.29 42.22 21.01
Mastercard Inc. 36.06 32.34 35.41 33.72 35.79
Microsoft Corp. 42.54 42.74 30.77 37.57 8.86
Oracle Corp. 8.36 6.27 22.31 10.78 8.16
PayPal Holdings Inc. 27.08 34.78 20.59 18.96 33.80
Salesforce Inc. 49.52 50.40 29.09 52.51 25.44
ServiceNow Inc. 64.80 50.12 74.57 327.16 24.90
Visa Inc. 37.21 26.18 32.21 30.19 22.70 8.78
P/FCFE, Sector
Software & Services 33.69 27.10 23.79 24.95 12.84
P/FCFE, Industry
Information Technology 27.51 24.27 20.21 21.78 12.26

Based on: 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).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2021 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 6,882,000,000 ÷ 471,700,000 = 14.59

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

5 2021 Calculation
P/FCFE = Share price ÷ FCFE per share
= 499.91 ÷ 14.59 = 34.26

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. P/FCFE ratio decreased from 2019 to 2020 and from 2020 to 2021.