What Adobe (ADBE) Investors Need to Know

Shares of Large-cap technology company Adobe moved -3.9 this evening, and are now trading at $542.21 per share. On the other hand, the average analyst target price for the stock is $577.67.

Adobe Inc., together with its subsidiaries, operates as a diversified software company worldwide.

Potential Adobe Investors Should Analyze the Following:

  • Adobe has moved 47.0% over the last year.

  • The company has a price to earnings growth (PEG) ratio of 2.55. A number between 0 and 1 could mean that the market is undervaluing Adobe's estimated growth potential

  • Its Price to Book (P/B) ratio is 16.66

Understanding Adobe's Operating Margins

Date Reported Total Revenue ($ k) Operating Expenses ($ k) Operating Margins (%) YoY Growth (%)
2023-01-17 17,606,000 -9,343,000 35 -5.41
2022-01-21 15,785,000 -8,118,000 37 12.12
2021-01-15 12,868,000 -6,909,000 33 17.86
2020-01-21 11,171,000 -6,230,000 28 -9.68
2019-01-25 9,030,000 -4,995,000 31 3.33
2018-01-22 7,301,505 -4,122,919 30

Adobe's operating margins have averaged 32.3% over the last 6 years, which is significantly higher than the Software industry average of 21.81%. The firm's margins exhibit a relatively stable growth trend of 2.4%.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.