Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Adobe Inc., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2025-11-28), 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).
The financial information indicates a generally positive trend in both net cash provided by operating activities and free cash flow to equity (FCFE) over the observed period. While some fluctuations exist, both metrics demonstrate overall growth from 2020 to the projected figures for 2025.
- Net Cash from Operations
- Net cash provided by operating activities increased from US$5,727 million in 2020 to US$7,230 million in 2021, representing a substantial rise. This growth continued to US$7,838 million in 2022 before experiencing a slight decrease to US$7,302 million in 2023. However, a significant increase is projected, reaching US$8,056 million in 2024 and further expanding to US$10,031 million in 2025. This suggests improving operational efficiency and cash generation capabilities.
- Free Cash Flow to Equity (FCFE)
- FCFE mirrored the trend observed in operating cash flow. It rose from US$5,302 million in 2020 to US$6,882 million in 2021, and then to US$7,396 million in 2022. A decrease was noted in 2023, with FCFE falling to US$6,442 million. A considerable increase is then projected, with FCFE reaching US$9,870 million in 2024 and US$10,349 million in 2025. This indicates a strengthening ability to generate cash available to equity holders.
The correlation between net cash from operations and FCFE is strong, suggesting that changes in operational cash flow directly impact the cash available to equity holders. The projected increases in both metrics for 2024 and 2025 are particularly noteworthy, potentially indicating successful strategic initiatives or favorable market conditions. The dip in 2023 warrants further investigation to understand the underlying causes, but does not appear to disrupt the overall positive trajectory.
Price to FCFE Ratio, Current
Adobe Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 410,500,000 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 10,349) |
| FCFE per share | 25.21 |
| Current share price (P) | 304.72 |
| Valuation Ratio | |
| P/FCFE | 12.09 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Accenture PLC | 11.52 |
| AppLovin Corp. | 74.55 |
| Cadence Design Systems Inc. | 29.81 |
| CrowdStrike Holdings Inc. | 110.56 |
| Datadog Inc. | 31.71 |
| International Business Machines Corp. | 24.22 |
| Intuit Inc. | 26.01 |
| Microsoft Corp. | 55.79 |
| Oracle Corp. | 100.76 |
| Palantir Technologies Inc. | 349.76 |
| Palo Alto Networks Inc. | 51.27 |
| Salesforce Inc. | 19.85 |
| ServiceNow Inc. | 42.01 |
| Synopsys Inc. | 6.50 |
| Workday Inc. | 22.93 |
| P/FCFE, Sector | |
| Software & Services | 43.39 |
| P/FCFE, Industry | |
| Information Technology | 51.69 |
Based on: 10-K (reporting date: 2025-11-28).
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 28, 2025 | Nov 29, 2024 | Dec 1, 2023 | Dec 2, 2022 | Dec 3, 2021 | Nov 27, 2020 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 410,500,000 | 435,300,000 | 452,000,000 | 457,800,000 | 471,700,000 | 478,700,000 | |
| Selected Financial Data (US$) | |||||||
| Free cash flow to equity (FCFE) (in millions)2 | 10,349) | 9,870) | 6,442) | 7,396) | 6,882) | 5,302) | |
| FCFE per share3 | 25.21 | 22.67 | 14.25 | 16.16 | 14.59 | 11.08 | |
| Share price1, 4 | 304.09 | 408.50 | 596.10 | 344.38 | 499.91 | 458.08 | |
| Valuation Ratio | |||||||
| P/FCFE5 | 12.06 | 18.02 | 41.83 | 21.32 | 34.26 | 41.36 | |
| Benchmarks | |||||||
| P/FCFE, Competitors6 | |||||||
| Accenture PLC | 9.96 | 23.91 | 21.01 | 17.87 | 25.76 | 19.01 | |
| AppLovin Corp. | — | 44.88 | 21.70 | 14.03 | 8.57 | — | |
| Cadence Design Systems Inc. | — | 24.08 | 71.40 | 33.41 | 36.31 | 45.86 | |
| CrowdStrike Holdings Inc. | 71.69 | 85.82 | 42.65 | 99.63 | 41.38 | 880.68 | |
| Datadog Inc. | — | 28.64 | 71.93 | 69.38 | 202.25 | 41.33 | |
| International Business Machines Corp. | — | 20.90 | 9.97 | 11.97 | 48.45 | 9.43 | |
| Intuit Inc. | 31.01 | 38.43 | 38.74 | 13.86 | 86.74 | 17.36 | |
| Microsoft Corp. | 60.89 | 42.11 | 43.32 | 36.73 | 42.54 | 42.74 | |
| Oracle Corp. | 113.86 | 48.38 | 15.47 | — | 8.36 | 6.27 | |
| Palantir Technologies Inc. | — | 256.11 | 74.28 | 96.89 | 198.12 | — | |
| Palo Alto Networks Inc. | 50.89 | 52.90 | 79.75 | 29.54 | 32.91 | 8.11 | |
| Salesforce Inc. | 25.91 | 38.33 | 31.06 | 16.56 | 49.52 | 50.40 | |
| ServiceNow Inc. | — | 61.82 | 58.19 | 44.44 | 64.54 | 49.83 | |
| Synopsys Inc. | 6.21 | 63.94 | 57.04 | 33.41 | 40.55 | 45.07 | |
| Workday Inc. | 29.52 | 36.59 | 19.79 | 49.17 | 40.57 | 74.21 | |
| P/FCFE, Sector | |||||||
| Software & Services | — | 39.85 | 32.90 | 31.13 | 33.80 | — | |
| P/FCFE, Industry | |||||||
| Information Technology | — | 36.63 | 33.18 | 26.93 | 27.31 | — | |
Based on: 10-K (reporting date: 2025-11-28), 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).
1 Data adjusted for splits and stock dividends.
3 2025 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 10,349,000,000 ÷ 410,500,000 = 25.21
4 Closing price as at the filing date of Adobe Inc. Annual Report.
5 2025 Calculation
P/FCFE = Share price ÷ FCFE per share
= 304.09 ÷ 25.21 = 12.06
6 Click competitor name to see calculations.
The Price to Free Cash Flow to Equity (P/FCFE) ratio exhibits considerable fluctuation over the observed period. Initially, the ratio decreased from 41.36 in 2020 to a low of 21.32 in 2022, before increasing again to 41.83 in 2023, and subsequently declining to 12.06 by 2025.
- Share Price Trend
- The share price demonstrated an initial increase from US$458.08 in 2020 to US$499.91 in 2021. A significant decrease followed, reaching US$344.38 in 2022. The price then recovered substantially to US$596.10 in 2023, but experienced further declines to US$408.50 in 2024 and US$304.09 in 2025.
- FCFE per Share Trend
- Free Cash Flow to Equity per share generally increased over the period. It rose from US$11.08 in 2020 to US$16.16 in 2022, experienced a slight dip to US$14.25 in 2023, and then increased significantly to US$22.67 in 2024 and US$25.21 in 2025. This indicates a growing capacity to generate cash available to equity holders.
- P/FCFE Ratio Analysis
- The initial decline in the P/FCFE ratio between 2020 and 2022 coincided with a decrease in share price and an increase in FCFE per share. This suggests that the market was initially valuing the equity at a lower multiple of its free cash flow. The subsequent increase in 2023, driven by a substantial share price increase despite a slight decrease in FCFE per share, indicates increased investor optimism or potentially overvaluation. The final decline in the ratio from 2023 to 2025 is primarily attributable to the share price decreasing at a faster rate than FCFE per share increased.
The observed volatility in the P/FCFE ratio suggests that market sentiment and expectations regarding future cash flow generation play a significant role in the company’s valuation. The increasing FCFE per share trend is a positive indicator, but the fluctuating share price introduces considerable uncertainty in the overall valuation.