Added to YB: 2025-11-06
Pitch date: 2025-11-01
ADBE [bullish]
Adobe Inc.
-23.83%
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. 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
$340.31
Price Target
516.56 (+99%)
Dividend
N/A
EV/EBITDA
11.58
P/E
15.76
EV/Sales
4.55
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.
Read full article (7 min)