Adobe Inc. (ADBE) Financial Ratios
30 years of historical data (1996–2025) · Technology · Software - Infrastructure
EV/EBITDA
↓
10.98
↓-63% vs avg
5yr avg: 29.87
30Y Low9.4·High52.1
P/FCF
↓
10.49
↓-65% vs avg
5yr avg: 29.76
30Y Low10.2·High43.6
P/B Ratio
↓
9.19
↓-40% vs avg
5yr avg: 15.35
30Y Low2.4·High22.9
ROE
↑
55.4%
↓+42% vs avg
5yr avg: 38.9%
30Y Low4%·High55%
Debt/EBITDA
↓
0.70
+3% vs avg
5yr avg: 0.68
30Y Low0.3·High2.1
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
ADBE Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Adobe Inc. trades at 15.0x earnings, 64% below its 5-year average of 41.6x, sitting at the 3rd percentile of its historical range. Compared to the Technology sector median P/E of 27.2x, the stock trades at a discount of 45%. On a free-cash-flow basis, the stock trades at 10.5x P/FCF, 65% below the 5-year average of 29.8x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $103.3B | $136.7B | $232.2B | $281.1B | $160.9B | $296.6B | $231.4B | $152.2B | $124.9B | $90.0B | $50.3B |
| Enterprise Value | $104.5B | $137.9B | $230.6B | $278.1B | $161.3B | $297.4B | $231.6B | $153.6B | $127.4B | $89.5B | $51.2B |
| P/E Ratio → | 14.98 | 19.17 | 41.74 | 51.77 | 33.81 | 61.53 | 44.05 | 51.59 | 48.25 | 53.11 | 42.99 |
| P/S Ratio | 4.35 | 5.75 | 10.80 | 14.48 | 9.14 | 18.79 | 17.98 | 13.62 | 13.83 | 12.32 | 8.59 |
| P/B Ratio | 9.19 | 11.76 | 16.46 | 17.02 | 11.45 | 20.04 | 17.44 | 14.45 | 13.34 | 10.63 | 6.77 |
| P/FCF | 10.49 | 13.87 | 29.67 | 40.50 | 21.75 | 43.02 | 43.59 | 37.23 | 33.20 | 32.90 | 25.20 |
| P/OCF | 10.30 | 13.63 | 28.82 | 38.50 | 20.52 | 41.06 | 40.40 | 34.41 | 31.00 | 30.88 | 22.86 |
P/E links to full P/E history page with 30-year chart
ADBE EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Adobe Inc.'s enterprise value stands at 11.0x EBITDA, 63% below its 5-year average of 29.9x. The Technology sector median is 17.3x, placing the stock at a 37% discount on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.80 | 10.72 | 14.33 | 9.16 | 18.84 | 18.00 | 13.75 | 14.11 | 12.26 | 8.74 |
| EV / EBITDA | 10.98 | 14.48 | 30.35 | 36.97 | 22.92 | 44.63 | 46.37 | 38.37 | 39.97 | 35.90 | 28.04 |
| EV / EBIT | 12.01 | 15.44 | 32.48 | 40.23 | 26.44 | 51.15 | 53.96 | 45.72 | 44.18 | 41.30 | 34.26 |
| EV / FCF | — | 14.00 | 29.47 | 40.06 | 21.80 | 43.14 | 43.63 | 37.59 | 33.85 | 32.74 | 25.64 |
ADBE Profitability
Margins and return-on-capital ratios measuring operating efficiency
Adobe Inc. earns an operating margin of 36.6%. Operating margins have expanded from 34.3% to 36.6% over the past 3 years, signaling improving operational efficiency. Return on equity of 55.4% is exceptionally high. ROIC of 51.4% represents excellent returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 88.6% | 88.6% | 89.0% | 87.9% | 87.7% | 88.2% | 86.6% | 85.0% | 86.8% | 86.2% | 86.0% |
| Operating Margin | 36.6% | 36.6% | 31.3% | 34.3% | 34.6% | 36.8% | 32.9% | 29.3% | 31.5% | 29.7% | 25.5% |
| Net Profit Margin | 30.0% | 30.0% | 25.9% | 28.0% | 27.0% | 30.5% | 40.9% | 26.4% | 28.7% | 23.2% | 20.0% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 55.4% | 55.4% | 36.3% | 35.5% | 33.0% | 34.4% | 44.2% | 29.7% | 29.1% | 21.3% | 16.2% |
| ROA | 23.9% | 23.9% | 18.5% | 19.1% | 17.5% | 18.7% | 23.4% | 14.9% | 15.6% | 12.4% | 9.6% |
| ROIC | 51.4% | 51.4% | 38.9% | 35.7% | 30.4% | 29.9% | 24.9% | 20.5% | 21.4% | 19.9% | 13.7% |
| ROCE | 44.6% | 44.6% | 32.7% | 32.8% | 31.0% | 29.7% | 27.0% | 24.2% | 22.3% | 20.8% | 15.4% |
ADBE Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Adobe Inc. carries a Debt/EBITDA ratio of 0.7x, which is very conservative (76% below the sector average of 2.9x). Net debt stands at $1.2B ($6.6B total debt minus $5.4B cash). Interest coverage of 33.1x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.57 | 0.57 | 0.43 | 0.25 | 0.33 | 0.32 | 0.35 | 0.39 | 0.44 | 0.22 | 0.25 |
| Debt / EBITDA | 0.70 | 0.70 | 0.80 | 0.54 | 0.66 | 0.70 | 0.94 | 1.03 | 1.29 | 0.75 | 1.04 |
| Net Debt / Equity | — | 0.10 | -0.11 | -0.19 | 0.03 | 0.06 | 0.02 | 0.14 | 0.27 | -0.05 | 0.12 |
| Net Debt / EBITDA | 0.13 | 0.13 | -0.20 | -0.41 | 0.06 | 0.12 | 0.05 | 0.37 | 0.78 | -0.17 | 0.48 |
| Debt / FCF | — | 0.12 | -0.20 | -0.44 | 0.05 | 0.12 | 0.04 | 0.36 | 0.66 | -0.16 | 0.44 |
| Interest Coverage | 33.10 | 33.10 | 41.10 | 58.85 | 54.45 | 51.35 | 36.53 | 20.82 | 31.91 | 29.14 | 21.20 |
ADBE Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 1.00x is below 1.0, meaning current liabilities exceed current assets — though the company's $5.4B cash position helps mitigate short-term liquidity concerns. The current ratio has declined from 1.34x to 1.00x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.00 | 1.00 | 1.07 | 1.34 | 1.11 | 1.25 | 1.48 | 0.79 | 1.13 | 2.05 | 2.08 |
| Quick Ratio | 1.00 | 1.00 | 1.07 | 1.34 | 1.11 | 1.25 | 1.48 | 0.79 | 1.13 | 2.05 | 2.08 |
| Cash Ratio | 0.65 | 0.65 | 0.75 | 0.95 | 0.75 | 0.84 | 1.09 | 0.51 | 0.75 | 1.65 | 1.69 |
| Asset Turnover | — | 0.81 | 0.71 | 0.65 | 0.65 | 0.58 | 0.53 | 0.54 | 0.48 | 0.50 | 0.46 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 35.99 | 35.17 | 41.82 | 42.81 | 43.43 | 39.65 | 50.15 | 53.18 | 60.89 | 51.94 |
ADBE Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Adobe Inc. returns 10.9% to shareholders annually primarily through share buybacks. The earnings yield of 6.7% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.7% | 5.2% | 2.4% | 1.9% | 3.0% | 1.6% | 2.3% | 1.9% | 2.1% | 1.9% | 2.3% |
| FCF Yield | 9.5% | 7.2% | 3.4% | 2.5% | 4.6% | 2.3% | 2.3% | 2.7% | 3.0% | 3.0% | 4.0% |
| Buyback Yield | 10.9% | 8.3% | 4.1% | 1.6% | 4.1% | 1.3% | 1.3% | 1.8% | 1.6% | 1.2% | 2.1% |
| Total Shareholder Yield | 10.9% | 8.3% | 4.1% | 1.6% | 4.1% | 1.3% | 1.3% | 1.8% | 1.6% | 1.2% | 2.1% |
| Shares Outstanding | — | $427M | $450M | $459M | $471M | $481M | $485M | $492M | $498M | $501M | $504M |
Peer Comparison
Compare ADBE with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 ADBEYou | $103B | 15.0 | 11.0 | 10.5 | 88.6% | 36.6% | 55.4% | 51.4% | 0.7 |
 CRM | $174B | 23.2 | 19.5 | 12.1 | 77.7% | 21.5% | 12.4% | 10.9% | 0.8 |
 MSFT | $3.1T | 30.3 | 19.4 | 42.9 | 68.8% | 45.6% | 33.3% | 24.9% | 0.7 |
 ORCL | $558B | 44.7 | 27.3 | — | 70.5% | 30.8% | 82.4% | 12.8% | 4.4 |
 NOW | $92B | 53.3 | 35.8 | 20.2 | 77.5% | 13.7% | 15.5% | 12.4% | 1.3 |
 INTU | $108B | 28.4 | 19.6 | 17.8 | 80.8% | 26.1% | 20.3% | 16.5% | 1.2 |
 CNVS | $52M | 16.6 | 3.3 | 3.2 | 50.4% | 10.1% | 10.3% | 20.3% | 0.0 |
 WIX | $4B | 85.0 | 162.0 | 7.1 | 68.1% | 0.1% | — | 0.2% | 47.8 |
 TTWO | $46B | -8.7 | — | — | 54.4% | -77.9% | -114.8% | -49.8% | — |
 AAPL | $4.2T | 38.5 | 29.7 | 42.7 | 46.9% | 32.0% | 171.4% | 67.4% | 0.8 |
 GOOGL | $4.8T | 36.8 | 32.2 | 65.7 | 59.7% | 32.1% | 35.7% | 25.1% | 0.4 |
| Technology Median | — | 27.2 | 17.3 | 19.8 | 48.9% | -0.6% | 2.5% | 3.0% | 2.9 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonADBE — Frequently Asked Questions
Quick answers to the most common questions about buying ADBE stock.
What is Adobe Inc.'s P/E ratio?
Adobe Inc.'s current P/E ratio is 15.0x. The historical average is 43.8x. This places it at the 3th percentile of its historical range.
What is Adobe Inc.'s EV/EBITDA?
Adobe Inc.'s current EV/EBITDA is 11.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 26.4x.
What is Adobe Inc.'s ROE?
Adobe Inc.'s return on equity (ROE) is 55.4%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 25.7%.
Is ADBE stock overvalued?
Based on historical data, Adobe Inc. is trading at a P/E of 15.0x. This is at the 3th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What are Adobe Inc.'s profit margins?
Adobe Inc. has 88.6% gross margin and 36.6% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Adobe Inc. have?
Adobe Inc.'s Debt/EBITDA ratio is 0.7x, indicating low leverage. A ratio below 2x is generally considered financially healthy.