ADBE Fair Value Estimate
Is Adobe Inc (ADBE) fairly priced at $242.92? We used 3 separate valuation methods on real SEC data. Here's what they show.
All 3 models say it's worth around
$347.49
Composite fair value (average of 3 models)
43% below fair valueFair value
$347.49
Market price
$242.92
What would I earn buying today?
(CAGR)
+7.4%
per year
What's a safe entry price?
(margin of safety)
$295.36
15% buffer below fair value
Do the models agree?
(model consensus)
2/3
undervalued
How we got this number
Each model asks a different question about ADBE's value. Tap any one to see the exact math — every number comes from a real SEC filing.
2 of 3 models say undervalued. The Graham Number flags overvaluation because ADBE has low book value relative to its price, which lowers the Graham Number.
Has ADBE ever been cheap? (price vs fair value)
Fair value vs actual stock price over the last ~2.5 years. The shaded area is the "hope premium" — what buyers pay above fundamentals, betting on future growth.
Adobe Inc is now priced below what all 3 models see as fair value — a 30% discount. That doesn't make it a sure buy — cheap stocks can get cheaper, and there may be good reasons for low prices. But from a valuation view, the gap suggests it's worth a closer look.
Think these models are too simple?
They are — on purpose. For deeper analysis using free cash flow, growth decay, and terminal value, try the full DCF Calculator. Or let X-Ray guide you through a full 5-step investment review.
About the Fair Value Calculator
This tool estimates intrinsic value using three independent models: the Graham Number (earnings × book value), a PEG-Adjusted fair P/E approach, and an Earnings-Based DCF that projects future earnings. All three are averaged for a composite fair value with upside or downside versus market price.
Using multiple models matters — one formula never tells the full story. When all three point in the same direction, the signal gains weight.
How It Works
Graham Number: sqrt(22.5 × EPS × Book Value) — a conservative upper bound based on earnings and net asset value.
PEG-Adjusted: Computes a fair P/E by matching the growth rate (PEG benchmark of 1.0), then applies that to current earnings.
Earnings-Based DCF: Projects future earnings, prices them using the sector median P/E, then discounts back to today.
The composite averages all three equally. Model fitness ratings tell you which results to trust most for this stock.
Is Adobe Inc Fairly Priced?
ExampleThree valuation methods were applied to Adobe Inc (ADBE) using live SEC filing data. Each one asks a different question — and they don't always agree.
Graham Number — Benjamin Graham's formula: sqrt(22.5 × EPS × Book Value). For ADBE with EPS of $16.70 and book value of $28.35, the Graham Number lands at $$103.21. This model was designed for asset-heavy firms — it often sets a low floor for asset-light companies.
PEG Ratio — Peter Lynch's insight: a stock's P/E should match its growth rate. ADBE grows earnings at 16.1% per year, so a fair P/E of 16.1x gives a PEG-adjusted fair value of $$268.53. The market P/E of 13.8x is lower than what growth justifies.
Earnings-Based DCF — Projects earnings 5 years forward at 16.1%, prices the future stock using the Technology sector median P/E of 28x (not ADBE's own inflated multiple), then discounts back at 8%. Result: $$670.72.
| Model | Fair Value | vs. Market Price ($242.92) |
|---|---|---|
| Graham Number | $103.21 | 135% above |
| PEG-Adjusted | $268.53 | 10% below |
| Earnings-Based DCF | $670.72 | 64% below |
Two of three models agree on direction. Graham Number disagrees — ADBE has low book value relative to its price, which lowers the Graham Number. This is common and doesn't invalidate the signal — check the model fitness ratings above to see which results fit ADBE best.
Frequently asked questions
The Fair Value Calculator runs three separate models on every S&P 500 stock. The Graham Number uses earnings and book value to find a safe price floor. The PEG Ratio checks if the P/E ratio matches earnings growth. The Earnings-Based DCF projects future earnings and brings them back to today's value. We average all three for a combined fair value, and show how much they agree.
Try it now — run all three valuation models for ADBE with live financial data.
Back to calculatorAll data from Adobe Inc SEC filings via Tiingo · Calculations by GoodMoat · Last refreshed Apr 7, 2026
This is not financial advice. Fair value models are estimates based on past data and assumptions.