--- title: Adobe (ADBE) — intrinsic value and fair price canonical: https://sweetvaluelab.com/stocks/adbe ticker: ADBE as_of: 2026-10-17 sector: Technology industry: Software - Application --- # Adobe (ADBE) Adobe (ADBE) closed at $245.20 on Oct 16, 2026, undervalued by 28% vs its model value of $340.54 (from a five-year discounted cash flow). ## Key figures | Figure | Value | | --- | ---: | | Last close | $245.20 (Oct 16, 2026) | | Model value (from a five-year discounted cash flow) | $340.54 | | Price vs model | undervalued by 28% vs model | | Range of that model | $240.57 – $610.51 | | Market value | $95.4B | | P/E (fiscal 2025) | 14.7 | | Net margin (fiscal 2025) | 30.0% | | Free cash flow (fiscal 2025) | $9.9B | | Dividend yield (trailing twelve months) | 0.00% | | Beta | 1.42 | | Cost of capital (WACC) | 10.00% | | Business classification | Profitable Growth (Moderate growth (~11% recent), High profitability (30% net margin), Moderately volatile earnings, Strong FCF yield (10.3%)) | ## On the stock lists | List | Place | Figure | Page | | --- | ---: | ---: | --- | | Highest free cash flow yield | #33 | 10.3% | https://sweetvaluelab.com/lists/highest-free-cash-flow-yield | | Worst performing this year | #38 | −29.9% | https://sweetvaluelab.com/lists/worst-performing-this-year | ## Valuation models Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026. | Model | Role | Value per share | Low | High | | --- | --- | ---: | ---: | ---: | | DCF · Perpetuity growth · 5y | primary | $340.54 | $240.57 | $610.51 | | DCF · Perpetuity growth · 10y | cross check | $374.41 | $269.47 | $652.84 | | DCF · EBITDA exit · 5y | cross check | $490.04 | $371.82 | $628.45 | | DCF · EBITDA exit · 10y | cross check | $498.22 | $368.89 | $668.30 | | P/E · peers | cross check | $502.38 | $431.22 | $642.53 | | P/E · own history | cross check | $622.99 | $479.90 | $777.22 | | PEG | sanity check | $387.85 | $387.85 | $387.85 | | EV/EBITDA · peers | cross check | $427.04 | $370.95 | $519.19 | | EV/Revenue · peers | cross check | $348.96 | $232.86 | $525.71 | | Earnings power value | cross check | $130.72 | $113.43 | $154.10 | ## Insider activity (SEC Form 4) Past 90 days: 0 open-market buys ($0) and 13 open-market sales ($31.5M); 10b5-1 plan sales included. | Date | Insider | Relationship | Transaction | Shares | Value | | --- | --- | --- | --- | ---: | ---: | | Sep 16, 2026 | NARAYEN SHANTANU | Chair and CEO | Open-market sell | 8,358 | $2.1M | | Sep 16, 2026 | NARAYEN SHANTANU | Chair and CEO | Open-market sell | 33,001 | $8.3M | | Sep 16, 2026 | NARAYEN SHANTANU | Chair and CEO | Open-market sell | 20,716 | $5.2M | | Sep 16, 2026 | NARAYEN SHANTANU | Chair and CEO | Open-market sell | 11,495 | $2.9M | | Sep 16, 2026 | NARAYEN SHANTANU | Chair and CEO | Open-market sell | 930 | $235,882 | ## Recent SEC filings | Filed | Form | What | Filing | | --- | --- | --- | --- | | Sep 22, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/796343/000079634326000156/adbe-20260828.htm | | Sep 10, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/796343/000079634326000147/adbe-20260910.htm | | Sep 8, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers; 7.01 Regulation FD Disclosure; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/796343/000079634326000144/adbe-20260902.htm | | Jul 17, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers | https://www.sec.gov/Archives/edgar/data/796343/000079634326000120/adbe-20260714.htm | | Jun 15, 2026 | S-8 | Employee stock plan registration | https://www.sec.gov/Archives/edgar/data/796343/000079634326000114/adbes-86152026.htm | ## Superinvestors holding it (latest 13F) | Manager | Quarter | Shares | Value | | --- | --- | ---: | ---: | | Dodge & Cox | 2026-06-30 | 3,114,932 | $638.6M | | Bill Nygren | 2026-06-30 | 2,829,066 | $580.0M | | Samantha McLemore | 2026-06-30 | 361,126 | $74.0M | | Bridgewater | 2026-06-30 | 88,751 | $18.2M | 13 tracked managers in all. ## About Adobe Inc. stands as a prominent global software provider, delivering a diverse range of solutions. Its operations are structured into three primary business divisions: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment empowers individuals, teams, and enterprises to generate, disseminate, and amplify various forms of content through its array of products and services, including the cloud-native Document Cloud platform. Central to this segment is Creative Cloud, its subscription-based flagship, granting access to a comprehensive suite of creative tools. This division caters to a diverse range of users, from professional content creators and marketers to educators, communicators, and general consumers. Adobe's Digital Experience division offers an integrated suite of applications and services designed to empower brands and businesses to craft, orc… --- Source: https://sweetvaluelab.com/stocks/adbe (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.