Technology / Software - Application

Adobe Inc. (ADBE)

$262.11
-4.35%
$104.8B
Market Cap
15.1
P/E Ratio
1.42
Beta
Dividend Yield
Piotroski 7/9Altman Z 7.0 SafeBeneish M -2.85 CleanROIC−WACC +23.4%

Quantitative Summary

Deterministic

At 15.1x earnings — a 77% discount to the sector average of 65.0x — ADBE is in the lower valuation range. Financial health metrics are strong: Piotroski 7/9, Altman Z 7.0 (above 3.0 safe zone threshold). Near modeled fair value — DCF estimates $218 (-9%).

Generated deterministically from quant metrics and financial statements. Not a recommendation.

Algorithmic Teardown

AI-Generated

Adobe Inc. demonstrates exceptional fundamental quality, characterized by a robust ROIC-WACC spread of +23.2% that signals highly efficient capital deployment relative to its cost of equity. The DuPont decomposition reveals an ROE of 61.3% driven primarily by industry-leading net margins at 30.0%, supported by moderate leverage (Equity Multiplier 2.54x) and decent asset turnover, rather than aggressive financial engineering. This operational strength is corroborated by a high Piotroski F-Score of 7/9, an Altman Z-Score of 7.7 indicating low bankruptcy risk, and a Beneish M-Score of -2.85 suggesting minimal earnings manipulation concerns.

Despite these strong fundamentals, the current valuation presents a significant divergence from historical norms and sector peers. Trading at a P/E ratio of 14.2x versus a technology sector average of 42.2x, the stock appears deeply discounted on an earnings basis. However, this compression is not fully supported by intrinsic value models; a DCF analysis implies a fair value of $214, which corresponds to -11.9% downside from current levels based on assumed FCF growth rates near 9.6%. This suggests the market may be pricing in structural headwinds or a re-rating risk that contradicts the company's profitability trajectory.

Risk factor analysis further complicates the investment thesis through mixed signals across different factors and insider behavior. While the stock exhibits robust profitability characteristics with a positive RMW alpha of 0.169, it suffers from substantial underperformance relative to size and value benchmarks, evidenced by an annual Fama-French Alpha of -68.72% and a negative HML tilt of -0.354. Compounding these valuation metrics is notable insider activity, with $485,323 in net selling over the past 90 days, which warrants close monitoring alongside the discrepancy between low multiples and DCF-derived downside potential.

Generated by LLM from quantitative data inputs. May contain inaccuracies. Not investment advice.

DCF Sandbox

Interactive
Market Price
$262.11
Fair Value
$221
Implied Upside
-15.7%
$221IMPLIED FAIR VALUEOVERVALUEDOVERUNDER
Growth Rate (Y1–5)1%
-10%20%50%
Discount Rate (WACC)13.5%
5%12.5%20%

5-year two-stage DCF. Terminal growth 3%. Default sliders match the pre-computed base case. Drag to explore scenarios. Not investment advice.

Reverse DCFMarket-Implied
9.1%annual FCF growth priced in at $262.11

The growth rate the market implicitly expects over the next 10 years to justify today's price. Compare with historical growth of 11% YoY revenue.

Sensitivity Matrix

TG ↓ / WACC →11.5%13.5%15.5%
2%$251$205$172
3%$273$218$181
4%$301$235$192

Center = base case. Green = >10% upside, Red = >10% downside vs $262.11.

Pre-computed DCF: WACC=13.5%, terminal growth 3%. Fair value $218 (-9.1%). Not investment advice.

Valuation Context

15.1x
ADBE P/E
65.0x
Sector Avg
25.5x
5Y Avg P/E
-77%
vs Sector

Currently trading 48% below its 5-year average P/E of 25.5x.

Price Chart with Moving Averages

Loading chart...
SMA 50 SMA 200

Technical Setup

AI Generated

Adobe Inc. is currently trading at $244.76 within the technology sector, presenting a specific technical snapshot that requires careful interpretation of its momentum and trend dynamics. Without explicit moving average data points in the provided parameters, the precise relationship between the current price and long-term or short-term averages remains undefined for this summary; however, the price level itself suggests a valuation point where market participants are actively weighing recent performance against historical benchmarks. The absence of specific RSI readings means that definitive conclusions regarding immediate overbought or oversold conditions cannot be drawn from the available information alone, leaving the assessment of short-term momentum incomplete without further indicators. In this context, any analysis must rely on the single data point provided while acknowledging significant gaps in the broader technical picture. The current price sits at a critical juncture where future direction will likely depend heavily on whether subsequent trading sessions establish support above or resistance below key moving averages not yet specified here. Traders observing this setup should note that the lack of corroborating trend indicators prevents a clear determination of whether the asset is in an established uptrend, downtrend, or consolidation phase based solely on these facts. Ultimately, the technical narrative for Adobe Inc. at $244.76 remains partially unresolved due to missing comparative data regarding moving averages and oscillators like RSI. Market participants must exercise caution when interpreting this isolated price level without context from broader trend confirmations or momentum signals that are typically required to validate a directional bias. The

RSI (14)
SMA 50
SMA 200

Quant Health Deep Dive

7/9
Piotroski F-Score
Strong — high operational efficiency and profitability signals
7.0
Altman Z-Score
Safe Zone — above 3.0 threshold per academic model. Thresholds: >3 safe, 1.8–3 grey, <1.8 distress.
-2.85
Beneish M-Score
Below threshold — no statistical earnings quality concern per Beneish model. Threshold: <-2.22 = below threshold.

Profitability & Value Creation

89.3%
Gross Margin
30.0%
Net Margin
36.8%
ROIC
13.5%
WACC
ROIC − WACC Spread: +23.4%— Positive value creation spread.
+10.5%
Revenue Growth (YoY)
+28.2%
Earnings Growth (YoY)
9.9B
Free Cash Flow

DuPont Analysis — ROE Decomposition

Breaking down Return on Equity to see how the company generates its ROE — efficiency, margins, or leverage.

30.0%
Net Profit Margin
NI ÷ Revenue
×
0.81x
Asset Turnover
Revenue ÷ Assets
×
2.54x
Equity Multiplier
Assets ÷ Equity
=
61.3%
Return on Equity
✅ ROE driven primarily by strong profit margins — a sign of pricing power.

Balance Sheet Health

1.54x
Debt / Equity
1.00x
Current Ratio
34.2x
Interest Coverage
0.1x
Net Debt / EBITDA
10.63%
FCF Yield
9.8B
EBITDA

Insider Activity (Last 90 Days)

Net Insider Flow
$-485,323
Net Selling
0
Buy Transactions
1
Sale Transactions
2026-03-13FORUSZ JILLIANSold 4/8 qtrsOther460 shares
2026-01-27DURN DANIEL JSold 2/8 qtrsSale$485,323
2026-01-23NARAYEN SHANTANUSold 2/8 qtrsOther69,553 shares
2026-01-23FORUSZ JILLIANSold 4/8 qtrsOther559 shares
2026-01-23CHEN GLORIA TOther10,663 shares

Open-market buys vs sells by company insiders. Source: yfinance.

Earnings Surprise History

Q4
✓ Beat
Est: $4.97
Act: $5.06
+1.7%
Q3
✓ Beat
Est: $5.18
Act: $5.31
+2.5%
Q2
✓ Beat
Est: $5.40
Act: $5.50
+1.9%
Q1
✓ Beat
Est: $5.87
Act: $6.06
+3.2%

EPS estimates vs actuals for the most recent reported quarters. Source: yfinance.

Dividend History

$0.0065
Latest Dividend
$0.01
2005 Total
-80.0%
YoY Growth
Annual Dividends per Share
$0.01
1995
$0.03
1996
$0.03
1997
$0.02
1998
$0.03
1999
$0.02
2000
$0.03
2001
$0.02
2002
$0.03
2003
$0.03
2004
$0.01
2005
DateAmountChange
2005-03-24$0.00650.0%
2004-12-23$0.00650.0%
2004-09-24$0.00650.0%
2004-06-25$0.00650.0%
2004-03-26$0.00650.0%
2004-01-07$0.00650.0%
2003-09-19$0.00650.0%
2003-06-19$0.00650.0%
2003-03-20$0.00650.0%
2003-01-07$0.00650.0%
2002-09-20$0.00650.0%
2002-06-21$0.00650.0%
Stock Splits
2005-05-24: 2:12000-10-25: 2:11999-10-27: 2:11993-08-11: 2:11988-11-23: 2:11987-03-12: 2:1

Dividend and split data from SEC filings and market data. Amounts are per share, not adjusted for splits. Source: yfinance.

Risk Profile

34.1%
Annual Volatility
-1.39
Sharpe (1Y)
-48.6%
Max Drawdown (5Y)

Sharpe = risk-adjusted return (higher is better). Max drawdown = largest peak-to-trough decline. 1,200+ trading days.

Underwater (Drawdown from Peak)

How far below the all-time high the price has been over time. Deeper = more pain for holders.

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Rolling 60-Day Beta vs S&P 500 (VOO)

How the stock's sensitivity to market moves changes over time. β > 1 = more volatile than the market.

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Rolling Beta Market (β = 1.0)

Fama-French 5-Factor Exposure

Academic factor model decomposition — what's really driving this stock's returns.

0.84
Market β
Mkt-RF
+0.339
Size (SMB)
Small-cap tilt
-0.354
Value (HML)
Growth tilt
+0.169
Profit (RMW)
Robust
+0.745
Invest (CMA)
Conservative
Alpha (annual): -68.72%
R²: 29.3%of variance explained by 5 factors

Fama-French 5-Factor Model. Data: Kenneth French Data Library. Regression over 3 years of daily returns.

Fundamentals

9.8
Forward P/E
0.69
PEG Ratio
9.20
Price/Book
5M
Avg Volume
$421.48
52W High
$224.13
52W Low
19%
52W Range Position

Passive Flow Attribution

ETF Draft Effect
$16.6B
Tracked Passive Exposure
8
ETFs Holding ADBE
0.25%
Avg Weight in ETFs
$6.8T
Total ETF AUM

When investors buy or sell ETFs like IGV or MOAT, the fund manager is mechanically forced to buy or sell ADBE shares regardless of Adobe Inc.'s individual fundamentals. We estimate $16.6B of passive capital is structurally linked to ADBE through 8 tracked ETFs. This substantial passive exposure means that ETF inflows and outflows — not company fundamentals — can dominate daily volume on this stock.

Passive exposure = Σ (ETF AUM × stock weight in ETF) across 8 tracked ETFs. Actual passive ownership is larger (includes mutual funds). Not investment advice.

ETF Contagion Visualizer

Simulate a price drop in Adobe Inc. to visualize passive redemption contagion across ETFs and collateral stocks.

ADBE Shock
-0%
Est. Passive Redemption
$0
Systemic Risk
STABLE
ADBEEpicenterVTIETFVOOETFIVVETFMSFTLow RiskORCLMed RiskAAPLLow RiskNVDALow RiskCRMMed Risk
ADBE Price Drop (%)0

If Adobe Inc. (ADBE) experiences a significant drawdown, ETF redemptions can create collateral selling pressure on co-held stocks. Our model identifies Microsoft Corp (MSFT) as the most exposed collateral stock, sharing 2 ETFs with ADBE. This is the "Passive Contagion" effect described in the Inelastic Market Hypothesis.

Contagion model based on shared ETF exposure and constituent weights across 33 tracked ETFs. Estimated selling pressure is a simplified model — actual impact depends on market liquidity, ETF redemption mechanics, and market-maker activity.

ADBE Ownership Dynamics

Passive funds hold 1 in every 6 ADBE shares, reducing daily market volatility.

Ticker
ADBE
Total Shares
404M
ETF Lock-Up
15.5%
Display Mode
Total Float Impact
15.5%Locked Float

Adobe Inc. (ADBE) exerts notable gravity on the passive index market, currently representing 4.1% of the IGV (IGV) and 2.5% of the MOAT (MOAT). Across 32 tracked ETFs, approximately 62M shares (15.5% of float) are held by passive funds and rarely trade on the open market. This level of passive ownership means index rebalances can create outsized volume events.

Float lock-up computed from 32 ETFs tracked by SecuritiesDB. Actual passive ownership is higher (includes mutual funds, pension funds, etc.).

ADBE Institutional Volume Profile

252-day volume distribution by price level. The Point of Control (POC) marks the price where the most institutional volume transacted — an implicit support/resistance floor.

TICKER
ADBE
PRICE
$262.11
FLOOR (POC)
$248.80
STRENGTH
High
$229$2399%$249POC 13%$2598%$262.11$269$278$288$298$308$318$328$3388%$34711%$35711%$367$377$387$397$407$417
Focus Zone
Point of Control (POC) Support (below price) Resistance (above price) Current Price

The highest-volume price zone for Adobe Inc. over the past year sits near $248.80 (13% of 252-day volume). The current price of $262.11 trades 5.3% above this institutional floor — a sign of upside momentum, though a pullback to the POC zone is a common reversion target. The highly concentrated volume profile (13% at POC) indicates strong consensus on fair value — institutional participants have repeatedly transacted near this price.

Volume Profile computed from 252 trading days of OHLCV data. Volume allocated to price bins proportionally based on daily high-low range. Not investment advice.

ADBE Capital Efficiency

How efficiently does Adobe Inc. convert operating profits into free cash? The FCF Conversion ratio measures the gap between accounting earnings and real cash generation.

Free Cash Flow
$9.9B
EBITDA
$9.8B
FCF Conversion
100%
Reinvestment Rate
-0%
100% of EBITDA → Free Cash
0% (cash burn)25% (low)50% (efficient)100% (pure cash)
ROIC
36.8%
ROIC − WACC Spread
23.4%

Adobe Inc. converts 100% of its EBITDA into free cash flow, an exceptional conversion rate indicating an asset-light business model with minimal capital reinvestment drag. The positive ROIC-WACC spread of 23.4% confirms that reinvested capital creates shareholder value.

Capital efficiency = Free Cash Flow ÷ EBITDA. Reinvestment = (EBITDA − FCF) ÷ EBITDA. Metrics from latest annual filings. Not investment advice.

Fails-to-Deliver (FTD) History

SEC-reported settlement failures. Elevated FTDs can indicate high short-selling pressure, operational settlement issues, or naked shorting activity.

DateFailed SharesClose PriceNotional Value
2026-05-13118$240.83$28,417.94
2026-05-111,628$253.04$411,949.12
2026-05-0511$253.96$2,793.56
2026-05-041,710$250.71$428,714.1
2026-05-01956$246.10$235,271.6
2026-04-271,530$245.44$375,523.2
2026-04-2327$255.94$6,910.38
2026-04-20501$244.45$122,469.45
2026-04-1613,503$244.66$3.3M
2026-04-1513$235.72$3,064.36
2026-04-144$240.11$960.44
2026-04-13100$225.35$22,535
2026-04-1011,712$229.94$2.7M
2026-04-084,950$240.14$1.2M
2026-04-061,084$242.92$263,325.28
2026-04-0141$243.08$9,966.28
2026-03-273$240.88$722.64
2026-03-2520$238.87$4,777.4
2026-03-232,741$248.15$680,179.15
2026-03-20300$245.99$73,797
2026-03-17400$251.86$100,744
2026-03-0910,206$283.62$2.9M
2026-03-042,274$270.99$616,231.26
2026-03-0322,751$260.88$5.9M
2026-02-2720$259.04$5,180.8
2026-02-24107$246.68$26,394.76
2026-02-23321$258.61$83,013.81
2026-02-2055,705$259.21$14.4M
2026-02-1914,547$263.17$3.8M
2026-02-171$263.97$263.97

Source: SEC Regulation SHO FTD data. Data is reported with a ~30 day delay. High FTD quantities relative to average daily volume may indicate settlement stress.

Price Correlations

Statistical correlation of daily returns with other stocks. High correlations indicate stocks that move together; negative correlations can offer diversification.

Peer252-Day (1Y)126-Day (6M)Direction
WTGXXNaNNaN
CRM0.6900.737Moderate
WDAY0.6100.686Moderate
NOW0.5900.678Moderate
INTU0.5840.714Moderate
PAYC0.5690.640Moderate
ADSK0.5610.622Moderate
GEN0.5570.627Moderate
ACN0.5440.579Moderate
TENB0.5170.568Moderate

Pearson correlation of daily log returns. 252d ≈ 1 trading year. Computed from price history. Not investment advice.

Compare ADBE to Peers

Quant metrics computed deterministically from financial statements and price data. Updated: 2026-06-02.

SecuritiesDB provides programmatic data aggregation for informational purposes only. None of the metrics, summaries, or algorithmic flags constitute a recommendation to buy or sell any security.