Added to YB: 2025-11-06
Pitch date: 2025-11-01
ADBE [bullish]
Adobe Inc.
+4.74%
current return
Author Info
HatedMoats identifies hated moats. I buy companies when the market panics. Contrarian investor focused on quality, value & long-term growth. Sign up for the newsletter.
Company Info
Adobe Inc. operates as a technology company worldwide. Its Digital Media segment offers products and services that enable individuals, teams, and enterprises to create, publish, and promote content; Document Cloud, a cloud-based document services platform; and Creative Cloud, a subscription service that allows subscribers to use its creative products and applications (apps) integrated with cloud-delivered services across various surfaces and platforms.
Market Cap
$143.6B
Pitch Price
$340.31
Price Target
516.56 (+45%)
Dividend
N/A
EV/EBITDA
14.88
P/E
20.55
EV/Sales
6.05
Sector
Software
Category
value
Adobe (ADBE): DCF Valuation
ADBE: DCF valuation of $423 vs current $338 (~20% margin of safety). 10-yr revenue CAGR 6.9%, terminal EBIT margin 37%. Strong moat via switching costs & industry-standard formats. 95% subscription revenue provides predictable cash flows. Market overreacting to AI competition fears despite Adobe's successful Firefly integration. Reverse DCF shows market pricing only 4.9% growth vs mgmt 10.1% guidance.
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