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ADBE Adobe Inc. - Fundamental Analysis

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ADBE Stock | Fundamental Analysis & Investment Insights
NASDAQ Technology Software - Application
Current Price Live
$258.61
Analyst Target
$413.6
+59.9% Upside
52W High
$453.26
52W Low
$251.1

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AI Analysis

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Confidence Score
78%
Analysis Accuracy
Adobe Inc. (ADBE) exhibits mixed fundamental signals: its Piotroski F-Score of 4/9 indicates a borderline stable financial health, while the absence of an Altman Z-Score prevents distress risk assessment. The stock trades at a forward P/E of 9.80, significantly below the sector average of 80.48, suggesting potential undervaluation, though its current price of $258.61 remains well below its intrinsic value estimate of $492.95 and Graham Number of $102.86. Strong profitability metrics—30% profit margin, 55.43% ROE—support long-term value, but recent earnings growth has turned negative (-7.5% YoY), and insider selling in the last six months adds caution. Analysts maintain a 'buy' recommendation with a target price of $413.60, implying upside potential.

Key Strengths

Exceptional profitability with 30.00% profit margin and 55.43% ROE
Strong gross margin of 89.27% indicating pricing power and cost efficiency
Attractive forward P/E of 9.80, significantly below sector average
Consistent earnings beat history over 25 quarters with average surprise of 2.69%
High intrinsic value estimate of $492.95 based on growth-oriented valuation

Key Risks

Piotroski F-Score of 4/9 suggests weak financial health, indicating potential operational or liquidity concerns
Negative year-over-year EPS growth (-7.5%) and recent Q/Q decline (-16.2%) signal weakening momentum
Insider selling activity (2 transactions, $0.54M) with no buys, signaling possible internal skepticism
Current price ($258.61) is below Graham Number ($102.86), but this may reflect overvaluation relative to conservative metrics due to growth premium
Lack of available debt, cash, and FCF data limits full financial health assessment
AI Fair Value Estimate
Based on comprehensive analysis
$492.95
+90.6% above current price

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