Adobe Inc. (ADBE) Valuation
Historical valuation analysis based on 1280 data points (2021-09-13 to 2026-10-16)
Adobe provides content creation, document management, and digital marketing and advertising software and services to creative professionals and marketers for creating, managing, delivering, measuri...
Adobe Inc. (ADBE) currently trades at a P/E ratio of 13.38 (historical range: 10.88–56.91, median: 37.12), placing it at the 4th percentile — cheap relative to its history, P/S ratio of 3.75 (range: 3.12–21.95, 3th percentile — cheap relative to its history), EV/EBITDA of 10.44 (range: 8.76–59.72, 4th percentile).
Over the historical period (2021-09-13 to 2026-10-16), Adobe Inc.'s P/E ratio has contracted by 36% over the observed period (from an average of 43.1 to 27.5).
Adobe Inc. trades well below its historical valuation range across most metrics.
Historical Valuation Metrics
| Metric | Current | Median | %ile | Assessment |
|---|---|---|---|---|
| P/E Ratio | 13.38 | 37.12 | 4th | cheap relative to its history |
| P/S Ratio | 3.75 | 10.35 | 3th | cheap relative to its history |
| EV/EBITDA | 10.44 | 29.92 | 4th | cheap relative to its history |
| FCF Yield | 10.87% | 3.66% | 96th | cheap relative to its history |
Adobe Inc. (ADBE) Valuation & P/E History
Adobe Inc. (ADBE) is a US-listed stock operating in the Technology sector, specifically the Software—Application industry currently trading at $243.40 with a market capitalization of $94.7 billion. This page provides historical valuation analysis for ADBE based on 1280 data points covering 2021-09-13 to 2026-10-16. The P/E ratio of 13.38 is below the historical median of 37.12, placing ADBE at the 4th percentile of its valuation range. The P/S ratio of 3.75 compares to a median of 10.35.
ADBE Valuation Metrics & Historical Range
The valuation table above shows Adobe Inc.'s current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether ADBE is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests ADBE is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for Adobe Inc..
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is ADBE Overvalued or Undervalued?
Adobe Inc. trades well below its historical valuation range across most metrics. The overall valuation percentile of 4 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive ADBE is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full ADBE analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.ADBE trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.