Added to YB: 2025-08-28
Pitch date: 2025-08-26
ADBE [neutral]
Adobe Inc.
-27.18%
current return
Author Info
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Company Info
Adobe Inc. operates as a technology company worldwide. The Digital Media segment offers products and services that enable individuals, teams, and enterprises to create, publish, and promote content.
Market Cap
$108.0B
Pitch Price
$355.98
Price Target
N/A
Dividend
N/A
EV/EBITDA
11.58
P/E
15.76
EV/Sales
4.55
Sector
Software
Category
value
Adobe at 16x FCF: Value Trap or Opportunity?
ADBE (overview): Creative software giant down 35% on AI disruption fears despite 13% 5yr revenue CAGR, 89% gross margins, 25% ROIC. Trades 16x FCF vs 21% historical FCF growth. Needs only 8% FCF growth to justify price. Aggressive $14B buybacks since Mar '24. Professional users sticky vs casual AI tools.
Read full article (4 min)