Adobe Inc. (ADBE) intrinsic value & 10-year financials

Adobe Inc. (ADBE) has a Graham intrinsic value of $554.70 per share. At $245.20 on Oct 17, 2026, the stock trades 56% below that value. Over the last 10 fiscal years revenue grew 16.9% a year to $23.8B, with an average return on invested capital of 33.6%.

Graham intrinsic value
$554.70
Share price (Oct 17, 2026)
$245.20
Price vs Graham value
56% below
Market cap
$104.7B
Revenue (FY2025)
$23.8B
Revenue growth (10-yr CAGR)
16.9%
ROIC (10-yr avg)
33.6%
Free cash flow (FY2025)
$9.9B

ADBE 10-year financial history

Fiscal year Revenue Net income EPS (diluted) Free cash flow Operating margin ROIC
FY2025 $23.8B $7.1B $16.70 $9.9B 36.6% 56.3%
FY2024 $21.5B $5.6B $12.36 $7.9B 31.3% 41.8%
FY2023 $19.4B $5.4B $11.82 $6.9B 34.3% 39.0%
FY2022 $17.6B $4.8B $10.10 $7.4B 34.6% 33.4%
FY2021 $15.8B $4.8B $10.02 $6.9B 36.8% 35.1%
FY2020 $12.9B $5.3B $10.83 $5.3B 32.9% 38.9%
FY2019 $11.2B $3.0B $6.00 $4.0B 29.3% 29.1%
FY2018 $9.0B $2.6B $5.20 $3.8B 31.5% 26.5%
FY2017 $7.3B $1.7B $3.38 $2.7B 29.7% 21.0%
FY2016 $5.9B $1.2B $2.32 $2.0B 25.5% 14.6%

Source: annual 10-K filings on SEC EDGAR. Figures in USD.

Executive summary

Adobe Inc. is a consistent compounder, expanding top-line revenue at 16.8% annually over the past decade.

Adobe Inc. has earned high returns on invested capital, averaging 33.6% ROIC over the available history. High ROIC is consistent with a durable franchise, but it is not by itself proof of an economic moat.

Over the decade, Adobe Inc. shows that management has aggressively returned capital to shareholders by retiring 15.3% of outstanding shares.

Benjamin Graham lens

Under Benjamin Graham's formula using SEC EDGAR fundamentals, Adobe Inc. is modeled at 15.0% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $554.70 per share.

ADBE stock: frequently asked questions

What is the intrinsic value of Adobe Inc. (ADBE) stock?

Using Benjamin Graham's revised formula, V = EPS × (8.5 + 2g) × 4.4 / Y, with reported diluted earnings per share, a 15.0% normalized growth rate (capped at 15%) and a 5.1% AAA corporate bond yield, ADBE's intrinsic value is about $554.70 per share.

Is ADBE stock undervalued?

At $245.20 (close on Oct 17, 2026), ADBE trades 56% below its Graham value of $554.70. On Graham's terms that leaves a margin of safety. A formula is a starting point for research, not a recommendation.

How fast has Adobe Inc. grown?

Revenue went from $5.9B in fiscal 2016 to $23.8B in fiscal 2025, a compound annual growth rate of 16.9%. Net income was $7.1B in fiscal 2025.

Does Adobe Inc. generate free cash flow?

Adobe Inc. generated $9.9B of free cash flow (operating cash flow minus capital expenditures) in fiscal 2025. Free cash flow was positive in 10 of the last 10 reported years.

What is ADBE's return on invested capital?

Average ROIC over the last 10 fiscal years was 33.6%, and average return on equity was 33.5%. Sustained ROIC above about 15% usually points to a durable competitive advantage.

Where does this ADBE data come from?

From Adobe Inc.'s annual 10-K filings on SEC EDGAR, most recently filed Jun 15, 2026. Prices are end-of-day snapshots; valuations are formula outputs, not investment advice.

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