What is Adobe Inc. (ADBE) DCF Fair Value and Intrinsic Value in 2026?

Adobe Inc. (ADBE) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is Adobe Inc.'s historical Return on Invested Capital (ROIC) and Moat Rating?

Adobe Inc. operates in the Technology sector (Software - Application) with an economic moat rating of WIDE. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is Adobe Inc.'s financial health rating and Piotroski F-Score?

Adobe Inc.'s balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor Adobe Inc. (ADBE) for quarterly SEC filing thesis breaks?

LocalAlpha audits Adobe Inc.'s 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksADBE

ADBE

Adobe Inc.Technology / Software - ApplicationINTACT

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. This segment serves photographers, video editors, graphic and experience designers, game developers, content creators, students, marketers, business owners, knowledge workers, and consumers. The Digital Experience segment provides an integrated platform; and products, services, and solutions that enable brands and businesses to create, manage, execute, measure, monetize, and optimize customer experiences from analytics to commerce. This segment serves marketers, advertisers, agencies, publishers, merchandisers, merchants, web analysts, data scientists, developers, and executives across the C-suite. The Publishing and Advertising segment offers e-learning, technical document publishing, web conferencing, document and forms platform, web application development, printing, and Adobe Advertising solutions. It also provides consulting, training, customer management, technical support, and learning services. The company offers its solutions to enterprise customers, and businesses and consumers; and licenses its products to end-user customers through app stores and website at adobe.com. It markets and distributes its products through distributors, retailers, software developers, mobile app stores, systems integrators, independent software vendors, value-added resellers, and original equipment and hardware manufacturers. The company also provides an online visibility management and content marketing software-as-a-service platform. The company has a strategic alliance with HUMAIN for the development of generative AI models and AI-powered applications. The company was formerly known as Adobe Systems Incorporated and changed its name to Adobe Inc. in October 2018. Adobe Inc. was founded in 1982 and is headquartered in San Jose, California.

Share Price

$250.50

52W: $190.12 - $370.86

DCF Fair Value

$727.33

+65.6% MoS

Thesis Hub

P/E (TTM)

14x

ROIC

26.5%

Operating Margin

35.3%

FCF Yield

9.3%

Debt / Equity

0.61x

Piotroski Score

8/9

Altman Z-Score

3.49

Market Cap

$99.6B

Price vs. Intrinsic Value Corridor

Margin of Safety Buy Zone (<25% Discount)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$727.33

MOS Buy Target (-25%)

$545.50

Valuation Overlays: DCF Fair Value ($727.33) 25% MOS Buy Target ($545.50) Revised Graham ($574.93) Graham Number ($107.89)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$250.50

DCF Fair Value

$727.25

+65.6% MoS

Starting Free Cash Flow ($M)$9,218M

$100M$9,218M (Reported)$50,000M

Stage 1 Growth (Years 1-5)17.7%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)$1,500M

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$118.1B

PV of Terminal Value

$172.8B

Implied Enterprise Value

$290.9B

Implied Equity Value

$289.4B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$10,850	$12,770	$15,030	$17,691	$20,822	$21,759	$22,738	$23,761	$24,830	$25,948
Present Value (PV)	$9,954	$10,748	$11,606	$12,532	$13,533	$12,974	$12,438	$11,925	$11,433	$10,961

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-132.2% Premium

$107.89

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $17.92BVPS: $28.87

Revised Graham Formula+56.4% MoS

$574.93

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings8.8% Yield

$22.00 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $8.8BYield: 8.8%

Reverse DCF: Market Growth Expectation

EXTREMELY LOW BARRIER

-2.6% CAGR (Next 10 Yrs)

At the current price of $250.50, the market is assuming the business will compound Free Cash Flow at -2.6% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

✓ Low market hurdle: Easy for a wide-moat compounder to beat.

Autonomous Thesis Underwriting

Surveil ADBE with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Adobe Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 35.3% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: Adobe Inc. (ADBE) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Adobe Inc..

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Adobe Inc. has an estimated DCF intrinsic fair value of $727.33 per share compared to its current market price of $250.50. This represents an estimated 65.6% margin of safety (trading below fair value). Additionally, its classic Benjamin Graham Number stands at $107.89.