Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Adobe Inc. (NASDAQ:ADBE)

Common Stock Valuation Ratios (Price Multiples)

Beginner level


Current Valuation Ratios

Adobe Inc., current price multiples

Microsoft Excel LibreOffice Calc
Adobe Inc. Alphabet Inc. Autodesk Inc. Facebook Inc. International Business Machines Corp. Intuit Inc. Microsoft Corp. Oracle Corp. salesforce.com inc. ServiceNow Inc. Software & Computer Services Technology
Selected Financial Data
Current share price (P) $466.20
No. shares of common stock outstanding 479,665,239
Growth rate (g) 16.17%
 
Earnings per share (EPS) $6.15
Next year expected EPS $7.15
Operating profit per share $6.81
Sales per share $23.29
Book value per share (BVPS) $21.95
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 75.77 30.64 249.59 37.77 11.14 51.51 41.29 17.38 1,422.15 128.69 35.95 30.81
Price to next year expected earnings 65.22 26.53 315.65 32.02 9.11 38.05 37.47 14.67 1,426.83 164.07 31.44 26.42
Price-earnings-growth (PEG) 4.69 1.98 2.10 0.50 1.46 4.04 0.94 2.51 1.85
Price to operating profit (P/OP) 68.42 30.74 156.08 29.11 9.97 43.26 37.72 12.67 603.34 1,914.61 32.61 27.18
Price to sales (P/S) 20.02 6.50 16.35 9.88 1.36 11.82 12.88 4.51 10.48 23.31 8.33 7.06
Price to book value (P/BV) 21.24 5.22 6.91 5.04 21.39 15.83 14.59 5.29 37.90 8.91 9.17

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

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.


Historical Valuation Ratios (Summary)

Adobe Inc., historical price multiples

Microsoft Excel LibreOffice Calc
Nov 29, 2019 Nov 30, 2018 Dec 1, 2017 Dec 2, 2016 Nov 27, 2015 Nov 28, 2014
Price to earnings (P/E) 57.17 46.11 57.41 46.80 70.59 132.73
Price to operating profit (P/OP) 51.63 42.06 44.86 36.62 49.21 86.32
Price to sales (P/S) 15.11 13.23 13.32 9.34 9.27 8.59
Price to book value (P/BV) 16.03 12.76 11.50 7.37 6.35 5.26

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).

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 decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.
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 decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.
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 decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.
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 2017 to 2018 and from 2018 to 2019.

Price to Earnings (P/E)

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

Microsoft Excel LibreOffice Calc
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$)
Net income (in thousands) 2,951,458  2,590,774  1,693,954  1,168,782  629,551  268,395 
Earnings per share (EPS)2 6.12 5.31 3.45 2.37 1.26 0.54
Share price1, 3 350.00 244.95 197.84 110.71 89.18 71.49
Valuation Ratio
P/E ratio4 57.17 46.11 57.41 46.80 70.59 132.73
Benchmarks
P/E Ratio, Competitors5
Alphabet Inc. 28.96 25.92 59.34 28.45 29.71
Autodesk Inc. 171.18
Facebook Inc. 32.31 21.51 35.20 37.05 84.21
International Business Machines Corp. 13.35 14.25 25.07 14.29 9.65
Intuit Inc. 48.17 46.88 37.26 29.60 63.89 26.44
Microsoft Corp. 26.86 50.00 26.25 26.08 30.63 16.11
Oracle Corp. 16.89 45.90 22.49 18.53 17.92
salesforce.com inc. 107.70 731.11 324.94
ServiceNow Inc. 106.89
P/E Ratio, Sector
Software & Computer Services 28.83 32.15 36.74 27.17 28.71
P/E Ratio, Industry
Technology 24.18 23.18 27.34 21.75 19.32

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 2019 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 2,951,458,000 ÷ 482,130,975 = 6.12

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

4 2019 Calculation
P/E ratio = Share price ÷ EPS
= 350.00 ÷ 6.12 = 57.17

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 decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.

Price to Operating Profit (P/OP)

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

Microsoft Excel LibreOffice Calc
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$)
Operating income (in thousands) 3,268,121  2,840,369  2,168,095  1,493,602  903,095  412,685 
Operating profit per share2 6.78 5.82 4.41 3.02 1.81 0.83
Share price1, 3 350.00 244.95 197.84 110.71 89.18 71.49
Valuation Ratio
P/OP ratio4 51.63 42.06 44.86 36.62 49.21 86.32
Benchmarks
P/OP Ratio, Competitors5
Alphabet Inc. 29.05 30.27 28.74 23.37 24.29
Autodesk Inc. 9,893.24 116.01
Facebook Inc. 24.90 19.10 27.76 30.46 49.89
International Business Machines Corp. 11.94 9.41 12.22 12.94 8.11
Intuit Inc. 40.45 37.92 25.94 23.33 31.60 18.25
Microsoft Corp. 24.54 23.63 24.93 21.70 20.57 12.81
Oracle Corp. 13.83 12.83 16.52 13.09 12.84
salesforce.com inc. 223.46 395.31 908.77 411.51
ServiceNow Inc. 1,590.30
P/OP Ratio, Sector
Software & Computer Services 26.15 23.40 25.58 22.07 21.30
P/OP Ratio, Industry
Technology 21.34 17.83 19.87 17.13 14.77

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 2019 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 3,268,121,000 ÷ 482,130,975 = 6.78

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

4 2019 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 350.00 ÷ 6.78 = 51.63

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 decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

Price to Sales (P/S)

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

Microsoft Excel LibreOffice Calc
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$)
Revenue (in thousands) 11,171,297  9,030,008  7,301,505  5,854,430  4,795,511  4,147,065 
Sales per share2 23.17 18.51 14.85 11.85 9.62 8.32
Share price1, 3 350.00 244.95 197.84 110.71 89.18 71.49
Valuation Ratio
P/S ratio4 15.11 13.23 13.32 9.34 9.27 8.59
Benchmarks
P/S Ratio, Competitors5
Alphabet Inc. 6.14 5.82 6.78 6.14 6.27
Autodesk Inc. 13.21 13.95 9.09 5.14 5.57
Facebook Inc. 8.45 8.52 13.80 13.70 17.32
International Business Machines Corp. 1.63 1.56 1.82 2.12 1.56
Intuit Inc. 11.05 9.52 6.99 6.17 5.56 5.32
Microsoft Corp. 8.38 7.51 6.19 5.13 3.99 4.10
Oracle Corp. 4.74 4.41 5.56 4.45 4.66
salesforce.com inc. 9.00 8.89 6.96 7.09 7.82
ServiceNow Inc. 19.36 16.63 14.55 10.50 8.69
P/S Ratio, Sector
Software & Computer Services 6.68 6.06 6.42 5.46 4.91
P/S Ratio, Industry
Technology 5.54 4.82 5.06 4.20 3.72

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 2019 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= 11,171,297,000 ÷ 482,130,975 = 23.17

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

4 2019 Calculation
P/S ratio = Share price ÷ Sales per share
= 350.00 ÷ 23.17 = 15.11

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 decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

Price to Book Value (P/BV)

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

Microsoft Excel LibreOffice Calc
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$)
Stockholders’ equity (in thousands) 10,530,155  9,362,114  8,459,869  7,424,835  7,001,580  6,775,905 
Book value per share (BVPS)2 21.84 19.20 17.21 15.03 14.05 13.60
Share price1, 3 350.00 244.95 197.84 110.71 89.18 71.49
Valuation Ratio
P/BV ratio4 16.03 12.76 11.50 7.37 6.35 5.26
Benchmarks
P/BV Ratio, Competitors5
Alphabet Inc. 4.94 4.49 4.93 3.99 3.91
Autodesk Inc. 25.18 7.94 6.31
Facebook Inc. 5.91 5.65 7.54 6.39 7.02
International Business Machines Corp. 6.04 7.40 8.20 9.30 8.92
Intuit Inc. 20.00 24.12 26.72 24.96 10.00 7.79
Microsoft Corp. 10.30 10.02 7.69 6.08 4.66 3.96
Oracle Corp. 8.59 3.84 3.90 3.49 3.66
salesforce.com inc. 7.66 9.93 7.78 9.45 10.57
ServiceNow Inc. 31.48 39.04 48.15 37.74 15.42
P/BV Ratio, Sector
Software & Computer Services 7.14 6.39 6.32 5.30 4.92
P/BV Ratio, Industry
Technology 7.20 6.25 5.50 4.51 4.34

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 2019 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 10,530,155,000 ÷ 482,130,975 = 21.84

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

4 2019 Calculation
P/BV ratio = Share price ÷ BVPS
= 350.00 ÷ 21.84 = 16.03

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 2017 to 2018 and from 2018 to 2019.