Added to YB: 2025-11-04
Pitch date: 2025-10-31
ADBE [neutral]
Adobe Inc.
-23.83%
current return
Author Info
Chop Wood, Carry Water is a tech manager and investor searching for value-based investments. 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
460.00 (+77%)
Dividend
N/A
EV/EBITDA
11.58
P/E
15.76
EV/Sales
4.55
Sector
Software
Category
value
Is Adobe Inc. Cheap Enough?
ADBE (pass): Market leader in creative/digital experience software trading at 17x P/E vs 30x industry avg, potentially 35% undervalued. FY24: $21.5B rev (+11% YoY), $7.9B FCF, 88.6% gross margins. Strong moat from switching costs & workflow integration but faces AI competition risk & FTC regulatory scrutiny over subscription practices. Failed $20B Figma deal cost $1B breakup fee. Clean balance sheet, $25B buyback program. Could double if sentiment improves but prefers lower entry for margin of safety.
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