Using the PEG framework with analyst consensus forward EPS growth of 14.8%, Adobe Inc. has a fair value of $348.89 based on NTM EPS (FY2026) of $23.53. The current PEG ratio is 0.69.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 14.8% |
| Adjusted Growth (clamped 8–25%) | 14.8% |
| Fair P/E | 14.8x |
| NTM EPS (FY2026) | $23.53 |
| Fair Value | $348.89 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $16.70 | — | — |
| FY2026E | $23.53 | +40.9% | 28 |
| FY2027E | $26.39 | +12.2% | 29 |
| FY2028E | $29.59 | +12.1% | 17 |
| FY2029E | $30.88 | +4.4% | 13 |
| FY2030E | $33.34 | +8.0% | 8 |
5Y Forward EPS CAGR: 14.8%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $4.8B | $10.02 | — |
| FY2022 | $4.8B | $10.10 | +0.8% |
| FY2023 | $5.4B | $11.83 | +17.1% |
| FY2024 | $5.6B | $12.36 | +4.5% |
| FY2025 | $7.1B | $16.70 | +35.1% |
4Y Historical EPS CAGR: 13.6%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.