Adobe Inc. (ADBE)

DCF Valuation · Technology · Software - Application

Valuation as at 2026-08-14 · see also the S&P 500 Most Undervalued screen

About Adobe Inc.

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.

Source: Yahoo Finance company profile · factual description, not KashVector commentary

Adobe Inc. ADBE

Technology · Software - Application

Price
$270.49
Market Cap
$107.52B
Free Cash Flow
$9.22B
Beta
1.40
P/E (TTM)
14.8x
52-Week Range
$190.12–$370.86

Adobe Inc.'s price & financial trends

Each card is labelled with its own reporting period — quarterly where Yahoo provides it for this market, annual otherwise.

Data as at 2026-08-14

Share price · last 2 years

$270.49 -53% vs 2024-08
S&P 500 $574.41$437.45$386.88$320.13$246.10$270.49 2024-082025-012025-062025-112026-042026-08

Earnings per share (diluted) Per quarter

$4.25 +8% vs Q2 '25
$3.94$4.18$4.45$4.60$4.25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26

Free cash flow Per quarter

$2.11B -2% vs Q2 '25
$2.14B$2.13B$3.13B$2.92B$2.11BQ2 '25Q3 '25Q4 '25Q1 '26Q2 '26

Dividend per share

No dividend history available.

Value investing scale · Buffett · Dalio · Graham

Partial Fit
12 / 20 combined score

See the full Buffett, Dalio & Graham breakdown for ADBE →

Intrinsic value estimate · 5-year forecast

BEAR
$234.99
vs current $270.49
-13.1% ⚠️ Fairly Valued
BASE
$320.86
vs current $270.49
+18.6% ⚠️ Fairly Valued
BULL
$444.37
vs current $270.49
+64.3% ✅ Undervalued

Assumptions used in this valuation

Every input below is either fetched live from Yahoo Finance or a documented default — nothing is hidden.

Starting free cash flow
$9.22B
Reported free cash flow (Yahoo)
Risk-free rate
4.68% ● LIVE
Live 10-yr govt bond
Beta
1.40
Direct from Yahoo
Equity risk premium
5.50%
Market-specific seed
Cost of debt
5.28%
Synthetic rating AAA, ICR 33.1x
Tax rate
25.00%
Estimated default
Capital structure
E 94% / D 6%
Market cap vs total debt
Projection horizon
5 years
+ terminal value beyond
BearBaseBull
5-yr FCF growth5.2%10.3%15.5%
Terminal growth2.5%2.5%2.5%
WACC (discount rate)12.85%11.85%10.85%

Cost of Equity = Risk-free rate + Beta × Equity Risk Premium = 4.68% + 1.40 × 5.50% = 12.37% · WACC = weighted by 94%/6% capital structure

These numbers come from running Adobe Inc.'s cash flows through the mechanical DCF formula and assumptions above — not from any view on the news, management, or ADBE's competitive position. What is DCF?

Want to test your own growth or discount-rate assumptions?Open the full interactive calculator, pre-filled with ADBE →

More S&P 500 stocks we've valued

Not financial advice. DCF valuations are highly sensitive to assumptions — small changes in growth rate or discount rate produce large swings in output. This is a mechanical calculation, not a recommendation to buy, hold, or sell.

About this valuation

Computed on 2026-08-14 from Yahoo Finance data, using the same engine as the full DCF tool and the S&P 500 Most Undervalued screen. Every figure above is a point-in-time snapshot of that date — change any assumption yourself in the interactive tool for a live one.

Frequently asked questions

Is Adobe Inc. (ADBE) undervalued?

The Base-case DCF estimates intrinsic value at $320.86 vs a price of $270.49 on 2026-08-14 — a +18.6% margin, so the Base case reads fairly valued. This is a mechanical output, not advice.