Adobe Systems Stock Analysis, Valuation (NASDAQ:ADBE)

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$257.54 $0.14 (0.05%) ADBE stock closing price Jul 20, 2018 (Closing)

Investors can watch the Amigobulls Adobe Systems stock analysis video here. Our ADBE analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Adobe Systems Incorporated Stock Rating 3.8/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for ADBE stock analysis. We also use relative valuation metrics like PE ratio and price to sales ratio for Adobe Systems valuation analysis. Adobe Systems stock rating is our opinion about the business fundamentals of the company.

Should you buy ADBE stock?

  • The Year Over Year (YoY) revenue growth for Adobe Systems was 23.9% in 2018-05.
  • Long term revenue growth has been strong with a 5 year compounded annual growth of 13.8.
  • The TTM operating margin was good at 31.97 for Adobe Systems.
  • Net margins stood at a healthy 26.7% (average) for Adobe Systems in the Trailing Twelve Months.
  • Adobe Systems's return on invested capital of 43.6 is good.
  • The LTM ROE of 25.9 for Adobe Systems is attractive.
  • The company has a healthy free cash flow margin of 42.4.

Should you sell ADBE stock?

  • The ADBE stock currently trades at a PE of 55.9, which is expensive, compared to the sector average of 26.2.
  • The company is trading at a price to sales multiple of 15.6, which is higher in comparison to the Computer and Technology sector average of 3, making ADBE stock expensive.

Comments on this video and Adobe Systems stock

Investors can use Amigobulls Adobe Systems stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. The fundamentals of a company are vital to identify long-term investment opportunities.

Adobe Systems revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Adobe Systems stock.