Stock Analysis on Net

Adobe Inc. (NASDAQ:ADBE)

Common Stock Valuation Ratios (Price Multiples)

Microsoft Excel

Current Valuation Ratios

Adobe Inc., current price multiples

Microsoft Excel
Adobe Inc. Accenture PLC International Business Machines Corp. Intuit Inc. Mastercard Inc. Microsoft Corp. Oracle Corp. PayPal Holdings Inc. Salesforce Inc. ServiceNow Inc. Visa Inc. Software & Services Information Technology
Selected Financial Data
Current share price (P) $275.20
No. shares of common stock outstanding 464,900,000
Growth rate (g) 26.91%
 
Earnings per share (EPS) $10.37
Next year expected EPS $13.16
Operating profit per share $12.48
Sales per share $33.95
Book value per share (BVPS) $31.83
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 26.53 27.58 18.68 52.84 31.63 23.88 24.51 23.88 99.61 331.64 29.85 27.40 23.62
Price to next year expected earnings 20.91 22.45 17.71 42.42 17.16 19.79 17.41 20.62 97.06 310.98 24.59 22.86 19.34
Price-earnings-growth (PEG) 0.99 1.21 3.41 2.15 0.38 1.16 0.60 1.51 37.87 49.92 1.39 1.38 1.07
Price to operating profit (P/OP) 22.05 21.37 15.63 42.46 27.25 20.83 15.07 23.35 262.48 296.80 23.26 24.29 20.83
Price to sales (P/S) 8.11 3.22 1.87 8.58 14.55 8.76 3.88 3.92 5.43 12.94 15.25 7.71 6.21
Price to book value (P/BV) 8.65 8.34 5.68 6.64 37.58 10.43 4.58 2.47 20.64 9.78 10.46 9.95

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

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
Dec 3, 2021 Nov 27, 2020 Nov 29, 2019 Nov 30, 2018 Dec 1, 2017 Dec 2, 2016
Price to earnings (P/E) 48.90 41.69 57.17 46.11 57.41 46.80
Price to operating profit (P/OP) 40.64 51.75 51.63 42.06 44.86 36.62
Price to sales (P/S) 14.94 17.04 15.11 13.23 13.32 9.34
Price to book value (P/BV) 15.94 16.53 16.03 12.76 11.50 7.37

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).

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. P/E ratio decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.
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. P/OP ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.
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. P/S ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Adobe Inc. P/BV ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Price to Earnings (P/E)

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

Microsoft Excel
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$)
Net income (in millions) 4,822  5,260  2,951  2,591  1,694  1,169 
Earnings per share (EPS)2 10.22 10.99 6.12 5.31 3.45 2.37
Share price1, 3 499.91 458.08 350.00 244.95 197.84 110.71
Valuation Ratio
P/E ratio4 48.90 41.69 57.17 46.11 57.41 46.80
Benchmarks
P/E Ratio, Competitors5
Accenture PLC 36.58 28.32 24.58 24.10 26.18 18.07
International Business Machines Corp. 19.40 19.30 13.35 14.25 25.07
Intuit Inc. 75.17 49.52 48.17 46.88 37.26
Mastercard Inc. 41.61 52.84 42.21 38.62 46.33
Microsoft Corp. 35.14 35.04 26.86 50.00 26.25
Oracle Corp. 15.84 16.69 16.89 45.90 22.49
PayPal Holdings Inc. 34.73 75.10 57.19 51.82 50.54
Salesforce Inc. 48.20 1,204.70 107.70 731.11 324.94
ServiceNow Inc. 487.70 978.47 106.89
Visa Inc. 34.83 40.76 32.08 30.03 37.19 30.68
P/E Ratio, Sector
Software & Services 35.22 38.84 29.82 39.44 31.77
P/E Ratio, Industry
Information Technology 29.30 32.94 24.23 23.80 24.48

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 2021 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 4,822,000,000 ÷ 471,700,000 = 10.22

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

4 2021 Calculation
P/E ratio = Share price ÷ EPS
= 499.91 ÷ 10.22 = 48.90

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. P/E ratio decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.

Price to Operating Profit (P/OP)

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

Microsoft Excel
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$)
Operating income (in millions) 5,802  4,237  3,268  2,840  2,168  1,494 
Operating profit per share2 12.30 8.85 6.78 5.82 4.41 3.02
Share price1, 3 499.91 458.08 350.00 244.95 197.84 110.71
Valuation Ratio
P/OP ratio4 40.64 51.75 51.63 42.06 44.86 36.62
Benchmarks
P/OP Ratio, Competitors5
Accenture PLC 28.35 22.21 18.63 16.75 19.47 15.44
International Business Machines Corp. 16.23 15.90 11.94 9.41 12.22
Intuit Inc. 62.00 41.56 40.45 37.92 25.94
Mastercard Inc. 35.85 41.92 35.46 31.07 27.39
Microsoft Corp. 30.79 29.30 24.54 23.63 24.93
Oracle Corp. 14.31 12.17 13.83 12.83 16.52
PayPal Holdings Inc. 33.98 95.94 51.72 48.58 42.65
Salesforce Inc. 431.39 511.08 223.46 395.31 908.77
ServiceNow Inc. 436.46 583.07 1,590.30
Visa Inc. 27.13 31.45 25.83 23.88 20.52 23.32
P/OP Ratio, Sector
Software & Services 31.22 32.42 26.18 23.02 22.96
P/OP Ratio, Industry
Information Technology 25.84 28.11 20.97 17.06 18.20

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 2021 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 5,802,000,000 ÷ 471,700,000 = 12.30

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

4 2021 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 499.91 ÷ 12.30 = 40.64

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. P/OP ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Price to Sales (P/S)

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

Microsoft Excel
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$)
Revenue (in millions) 15,785  12,868  11,171  9,030  7,302  5,854 
Sales per share2 33.46 26.88 23.17 18.51 14.85 11.85
Share price1, 3 499.91 458.08 350.00 244.95 197.84 110.71
Valuation Ratio
P/S ratio4 14.94 17.04 15.11 13.23 13.32 9.34
Benchmarks
P/S Ratio, Competitors5
Accenture PLC 4.28 3.26 2.72 2.35 2.45 2.13
International Business Machines Corp. 1.94 1.47 1.63 1.56 1.82
Intuit Inc. 16.09 11.78 11.05 9.52 6.99
Mastercard Inc. 19.14 22.14 20.30 15.13 14.51
Microsoft Corp. 12.81 10.85 8.38 7.51 6.19
Oracle Corp. 5.38 4.33 4.74 4.41 5.56
PayPal Holdings Inc. 5.71 14.71 7.91 6.90 6.93
Salesforce Inc. 9.24 8.88 9.00 8.89 6.96
ServiceNow Inc. 19.02 25.66 19.36 16.63 14.55
Visa Inc. 17.79 20.27 16.86 15.01 13.57 12.19
P/S Ratio, Sector
Software & Services 9.91 9.10 7.37 6.22 5.61
P/S Ratio, Industry
Information Technology 7.71 7.32 5.60 4.70 4.56

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 2021 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= 15,785,000,000 ÷ 471,700,000 = 33.46

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

4 2021 Calculation
P/S ratio = Share price ÷ Sales per share
= 499.91 ÷ 33.46 = 14.94

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. P/S ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Price to Book Value (P/BV)

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

Microsoft Excel
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$)
Stockholders’ equity (in millions) 14,797  13,264  10,530  9,362  8,460  7,425 
Book value per share (BVPS)2 31.37 27.71 21.84 19.20 17.21 15.03
Share price1, 3 499.91 458.08 350.00 244.95 197.84 110.71
Valuation Ratio
P/BV ratio4 15.94 16.53 16.03 12.76 11.50 7.37
Benchmarks
P/BV Ratio, Competitors5
Accenture PLC 11.06 8.51 8.15 9.44 10.08 9.83
International Business Machines Corp. 5.90 5.24 6.04 7.40 8.20
Intuit Inc. 15.71 17.71 20.00 24.12 26.72
Mastercard Inc. 49.43 53.00 58.15 41.94 33.17
Microsoft Corp. 15.16 13.11 10.30 10.02 7.69
Oracle Corp. 41.57 14.01 8.59 3.84 3.90
PayPal Holdings Inc. 6.66 15.76 8.33 6.93 5.67
Salesforce Inc. 4.73 4.48 7.66 9.93 7.78
ServiceNow Inc. 30.36 40.91 31.48 39.04 48.15
Visa Inc. 11.41 12.23 11.17 9.10 7.61 5.59
P/BV Ratio, Sector
Software & Services 13.45 12.77 11.20 9.38 7.75
P/BV Ratio, Industry
Information Technology 12.35 11.46 8.82 7.28 5.70

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 2021 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 14,797,000,000 ÷ 471,700,000 = 31.37

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

4 2021 Calculation
P/BV ratio = Share price ÷ BVPS
= 499.91 ÷ 31.37 = 15.94

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 required rate of return and its actual rate of return. Adobe Inc. P/BV ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.