Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).

Current Valuation Ratios
Historical Valuation Ratios (Summary)
Price to Earnings (P/E)
Price to Operating Profit (P/OP)
Price to Sales (P/S)
Price to Book Value (P/BV)

Adobe Inc., current price multiples

	Adobe Inc.	Alphabet Inc.	Facebook Inc.	International Business Machines Corp.	Intuit Inc.	Microsoft Corp.	Oracle Corp.	salesforce.com inc.	Software & Computer Services	Technology
Selected Financial Data
Current share price (P)	$269.24
No. shares of common stock outstanding	484,078,609
Growth rate (g)	11.86%

Earnings per share (EPS)	$5.35
Next year expected EPS	$5.99
Operating profit per share	$5.87
Sales per share	$18.65
Book value per share (BVPS)	$19.34
Valuation Ratios (Price Multiples)
Price to earnings (P/E)	50.31	28.27	24.56	13.63	44.52	27.18	16.34	115.49	36.16	27.42
Price to next year expected earnings	44.97	24.91	21.27	10.50	32.89	24.66	14.07	115.39	31.78	23.73
Price-earnings-growth (PEG)	4.24	2.10	1.59	0.46	1.26	2.66	1.01	1,424.10	2.62	1.76
Price to operating profit (P/OP)	45.89	33.01	21.80	9.00	37.39	24.83	13.38	239.61	26.38	20.82
Price to sales (P/S)	14.43	6.35	9.73	1.49	10.22	8.48	4.58	9.65	6.94	5.54
Price to book value (P/BV)	13.92	4.89	6.46	7.08	18.49	10.42	8.31	8.21	7.26	7.24

Based on: 10-K (filing date: 2019-01-25).

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.

Adobe Inc., historical price multiples

	Nov 30, 2018	Dec 1, 2017	Dec 2, 2016	Nov 27, 2015	Nov 28, 2014	Nov 29, 2013
Price to earnings (P/E)	46.11	57.41	46.80	70.59	132.73	104.21
Price to operating profit (P/OP)	42.06	44.86	36.62	49.21	86.32	71.49
Price to sales (P/S)	13.23	13.32	9.34	9.27	8.59	7.45
Price to book value (P/BV)	12.76	11.50	7.37	6.35	5.26	4.49

Based on: 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), 10-K (filing date: 2014-01-21).

Valuation ratio	Description	The company
P/E ratio	The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings.	Adobe Inc.’s P/E ratio increased from 2016 to 2017 but then declined significantly from 2017 to 2018.
P/OP ratio	Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit.	Adobe Inc.’s P/OP ratio increased from 2016 to 2017 but then slightly declined from 2017 to 2018.
P/S ratio	An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative.	Adobe Inc.’s P/S ratio increased from 2016 to 2017 but then slightly declined from 2017 to 2018.
P/BV ratio	The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return.	Adobe Inc.’s P/BV ratio increased from 2016 to 2017 and from 2017 to 2018.

Adobe Inc., historical P/E calculation, comparison to benchmarks

	Nov 30, 2018	Dec 1, 2017	Dec 2, 2016	Nov 27, 2015	Nov 28, 2014	Nov 29, 2013
No. shares of common stock outstanding¹	487,725,915	491,578,529	494,078,475	498,330,407	498,314,061	496,604,463
Selected Financial Data (US$)
Net income (in thousands)	2,590,774	1,693,954	1,168,782	629,551	268,395	289,985
Earnings per share (EPS)²	5.31	3.45	2.37	1.26	0.54	0.58
Share price^1, 3	244.95	197.84	110.71	89.18	71.49	60.85
Valuation Ratio
P/E ratio⁴	46.11	57.41	46.80	70.59	132.73	104.21
Benchmarks
P/E Ratio, Competitors⁵
Alphabet Inc.	25.92	59.34	28.45	29.71	24.87	—
Facebook Inc.	21.51	35.20	37.05	84.21	74.26	—
International Business Machines Corp.	14.25	25.07	14.29	9.65	13.55	—
Intuit Inc.	46.88	37.26	29.60	63.89	26.44	—
Microsoft Corp.	50.00	26.25	26.08	30.63	16.11	—
Oracle Corp.	45.90	22.49	18.53	17.92	16.33	—
salesforce.com inc.	731.11	324.94	—	—	—	—
P/E Ratio, Sector
Software & Computer Services	31.08	35.65	26.47	28.24	21.67	—
P/E Ratio, Industry
Technology	24.30	27.49	21.13	19.29	18.78	—

Based on: 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), 10-K (filing date: 2014-01-21).

¹ Data adjusted for splits and stock dividends.

² 2018 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 2,590,774,000 ÷ 487,725,915 = 5.31

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

⁴ 2018 Calculation
P/E ratio = Share price ÷ EPS
= 244.95 ÷ 5.31 = 46.11

⁵ Click competitor name to see calculations.

Valuation ratio	Description	The company
P/E ratio	The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings.	Adobe Inc.’s P/E ratio increased from 2016 to 2017 but then declined significantly from 2017 to 2018.

Adobe Inc., historical P/OP calculation, comparison to benchmarks

	Nov 30, 2018	Dec 1, 2017	Dec 2, 2016	Nov 27, 2015	Nov 28, 2014	Nov 29, 2013
No. shares of common stock outstanding¹	487,725,915	491,578,529	494,078,475	498,330,407	498,314,061	496,604,463
Selected Financial Data (US$)
Operating income (in thousands)	2,840,369	2,168,095	1,493,602	903,095	412,685	422,723
Operating profit per share²	5.82	4.41	3.02	1.81	0.83	0.85
Share price^1, 3	244.95	197.84	110.71	89.18	71.49	60.85
Valuation Ratio
P/OP ratio⁴	42.06	44.86	36.62	49.21	86.32	71.49
Benchmarks
P/OP Ratio, Competitors⁵
Alphabet Inc.	30.27	28.74	23.37	24.29	21.78	—
Facebook Inc.	19.10	27.76	30.46	49.89	43.72	—
International Business Machines Corp.	9.41	12.22	12.94	8.11	8.79	—
Intuit Inc.	37.92	25.94	23.33	31.60	18.25	—
Microsoft Corp.	23.63	24.93	21.70	20.57	12.81	—
Oracle Corp.	12.83	16.52	13.09	12.84	12.12	—
salesforce.com inc.	395.31	908.77	411.51	—	—	—
P/OP Ratio, Sector
Software & Computer Services	22.67	24.94	21.63	20.98	16.35	—
P/OP Ratio, Industry
Technology	18.45	19.88	16.75	14.70	14.48	—

Based on: 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), 10-K (filing date: 2014-01-21).

¹ Data adjusted for splits and stock dividends.

² 2018 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 2,840,369,000 ÷ 487,725,915 = 5.82

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

⁴ 2018 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 244.95 ÷ 5.82 = 42.06

⁵ Click competitor name to see calculations.

Valuation ratio	Description	The company
P/OP ratio	Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit.	Adobe Inc.’s P/OP ratio increased from 2016 to 2017 but then slightly declined from 2017 to 2018.

Adobe Inc., historical P/S calculation, comparison to benchmarks

	Nov 30, 2018	Dec 1, 2017	Dec 2, 2016	Nov 27, 2015	Nov 28, 2014	Nov 29, 2013
No. shares of common stock outstanding¹	487,725,915	491,578,529	494,078,475	498,330,407	498,314,061	496,604,463
Selected Financial Data (US$)
Revenue (in thousands)	9,030,008	7,301,505	5,854,430	4,795,511	4,147,065	4,055,240
Sales per share²	18.51	14.85	11.85	9.62	8.32	8.17
Share price^1, 3	244.95	197.84	110.71	89.18	71.49	60.85
Valuation Ratio
P/S ratio⁴	13.23	13.32	9.34	9.27	8.59	7.45
Benchmarks
P/S Ratio, Competitors⁵
Alphabet Inc.	5.82	6.78	6.14	6.27	5.44	—
Facebook Inc.	8.52	13.80	13.70	17.32	17.51	—
International Business Machines Corp.	1.56	1.82	2.12	1.56	1.76	—
Intuit Inc.	9.52	6.99	6.17	5.56	5.32	—
Microsoft Corp.	7.51	6.19	5.13	3.99	4.10	—
Oracle Corp.	4.41	5.56	4.45	4.66	4.67	—
salesforce.com inc.	8.89	6.96	7.09	7.82	9.54	—
P/S Ratio, Sector
Software & Computer Services	5.96	6.37	5.44	4.89	4.44	—
P/S Ratio, Industry
Technology	4.91	5.12	4.24	3.78	3.89	—

Based on: 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), 10-K (filing date: 2014-01-21).

¹ Data adjusted for splits and stock dividends.

² 2018 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= 9,030,008,000 ÷ 487,725,915 = 18.51

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

⁴ 2018 Calculation
P/S ratio = Share price ÷ Sales per share
= 244.95 ÷ 18.51 = 13.23

⁵ Click competitor name to see calculations.

Valuation ratio	Description	The company
P/S ratio	An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative.	Adobe Inc.’s P/S ratio increased from 2016 to 2017 but then slightly declined from 2017 to 2018.

Adobe Inc., historical P/BV calculation, comparison to benchmarks

	Nov 30, 2018	Dec 1, 2017	Dec 2, 2016	Nov 27, 2015	Nov 28, 2014	Nov 29, 2013
No. shares of common stock outstanding¹	487,725,915	491,578,529	494,078,475	498,330,407	498,314,061	496,604,463
Selected Financial Data (US$)
Stockholders’ equity (in thousands)	9,362,114	8,459,869	7,424,835	7,001,580	6,775,905	6,724,634
Book value per share (BVPS)²	19.20	17.21	15.03	14.05	13.60	13.54
Share price^1, 3	244.95	197.84	110.71	89.18	71.49	60.85
Valuation Ratio
P/BV ratio⁴	12.76	11.50	7.37	6.35	5.26	4.49
Benchmarks
P/BV Ratio, Competitors⁵
Alphabet Inc.	4.49	4.93	3.99	3.91	3.44	—
Facebook Inc.	5.65	7.54	6.39	7.02	6.05	—
International Business Machines Corp.	7.40	8.20	9.30	8.92	13.73	—
Intuit Inc.	24.12	26.72	24.96	10.00	7.79	—
Microsoft Corp.	10.02	7.69	6.08	4.66	3.96	—
Oracle Corp.	3.84	3.90	3.49	3.66	3.82	—
salesforce.com inc.	9.93	7.78	9.45	10.57	12.79	—
P/BV Ratio, Sector
Software & Computer Services	6.24	6.22	5.26	4.89	4.55	—
P/BV Ratio, Industry
Technology	6.42	5.55	4.54	4.39	4.29	—

Based on: 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), 10-K (filing date: 2014-01-21).

¹ Data adjusted for splits and stock dividends.

² 2018 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 9,362,114,000 ÷ 487,725,915 = 19.20

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

⁴ 2018 Calculation
P/BV ratio = Share price ÷ BVPS
= 244.95 ÷ 19.20 = 12.76

⁵ Click competitor name to see calculations.

Valuation ratio	Description	The company
P/BV ratio	The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return.	Adobe Inc.’s P/BV ratio increased from 2016 to 2017 and from 2017 to 2018.

Adobe Inc. (ADBE)

Common Stock Valuation Ratios (Price Multiples)

Current Valuation Ratios

Historical Valuation Ratios (Summary)

Price to Earnings (P/E)

Price to Operating Profit (P/OP)

Price to Sales (P/S)

Price to Book Value (P/BV)