Using the industry peer median P/E multiple (trailing + forward), Adobe Inc. (ADBE) has a fair value of $721.70 based on 8 comparable companies in the Software - Infrastructure industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Adobe Inc.ADBE | 102,647 | 14.4x | 10.2x |
| KLA CorporationKLAC | 192,316 | 48.2x | 40.0x |
| Texas Instruments IncorporatedTXN | 177,859 | 35.8x | 30.4x |
| Analog Devices, Inc.ADI | 154,224 | 69.3x | 49.8x |
| Accenture plcACN | 120,644 | 16.1x | 14.1x |
| Dell Technologies Inc.DELL | 119,398 | 20.9x | 17.7x |
| Palo Alto Networks, Inc.PANW | 106,884 | 98.0x | 42.4x |
| Synopsys, Inc.SNPS | 77,468 | 50.3x | 31.5x |
| Fortinet, Inc.FTNT | 59,767 | 33.1x | 27.0x |
| Industry Median | 42.0x | 31.0x | |
| (*) Profit after tax | 7,130 | 10,047 | |
| Equity Value | 299,599 | 316,729 | |
| (/) Outstanding shares | 427 | 427 | |
| Fair Price | $702 | $742 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.