Latest Ratios: P/E Ratio 13.3x · EV/EBITDA 9.4x · ROE 55.4%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $88.1B | $136.7B | $232.2B | $281.1B | $160.9B | $296.6B | $231.4B | $152.2B | $124.9B | $90.0B | $50.3B |
| Enterprise Value | $89.3B | $137.9B | $230.6B | $278.1B | $161.3B | $297.4B | $231.6B | $153.6B | $127.4B | $89.5B | $51.2B |
| P/E Ratio → | 13.27 | 19.17 | 41.74 | 51.77 | 33.81 | 61.53 | 44.05 | 51.59 | 48.25 | 53.11 | 42.99 |
| P/S Ratio | 3.70 | 5.75 | 10.80 | 14.48 | 9.14 | 18.79 | 17.98 | 13.62 | 13.83 | 12.32 | 8.59 |
| P/B Ratio | 8.14 | 11.76 | 16.46 | 17.02 | 11.45 | 20.04 | 17.44 | 14.45 | 13.34 | 10.63 | 6.77 |
| P/FCF | 8.94 | 13.87 | 29.67 | 40.50 | 21.75 | 43.02 | 43.59 | 37.23 | 33.20 | 32.90 | 25.20 |
| P/OCF | 8.78 | 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
Enterprise-value multiples — capital-structure-neutral measures of total business value
| 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 | 9.37 | 14.48 | 30.35 | 36.97 | 22.92 | 44.63 | 46.37 | 38.37 | 39.97 | 35.90 | 28.04 |
| EV / EBIT | 10.25 | 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 |
Margins and return-on-capital ratios measuring operating efficiency
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% |
| 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% |
Solvency and debt-coverage ratios — lower is generally safer
| 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 | 33.96 | 33.96 | 43.29 | 61.17 | 54.45 | 51.45 | 37.00 | 21.41 | 32.39 | 29.14 | 21.20 |
Short-term solvency ratios and asset-utilisation metrics
| 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 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
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 | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 7.5% | 5.2% | 2.4% | 1.9% | 3.0% | 1.6% | 2.3% | 1.9% | 2.1% | 1.9% | 2.3% |
| FCF Yield | 11.2% | 7.2% | 3.4% | 2.5% | 4.6% | 2.3% | 2.3% | 2.7% | 3.0% | 3.0% | 4.0% |
| Buyback Yield | 12.8% | 8.3% | 4.1% | 1.6% | 4.1% | 1.3% | 1.3% | 1.8% | 1.6% | 1.2% | 2.1% |
| Total Shareholder Yield | 12.8% | 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 |
Generative AI compute costs
Based on current market data, Adobe's P/E ratio of 12.14 sits at a notable discount to diversified software peers like Microsoft, suggesting that investors are pricing in significant uncertainty regarding the long-term impact of generative AI on the company's core creative software pricing power.
The forward P/E of 8.33 implies that the market is not currently assigning a premium for future growth, which may be an overreaction to the competitive threat posed by AI-native startups. This valuation level warrants further investigation into whether the market is misjudging the stickiness of Adobe's professional ecosystem compared to broader enterprise software providers.
As reported in financial statements, Adobe's ROIC has fluctuated between 10.6% and 14.7% over the last ten quarters, indicating that the company continues to generate returns well above its cost of capital despite the recent termination of the high-profile Figma acquisition agreement.
The stability in ROIC suggests that the company's core business model remains highly efficient at converting invested capital into earnings. Investors should monitor whether the recent dip to 13.2% in 2026Q2 reflects a temporary increase in capital intensity or a structural shift in the profitability of new product initiatives.
According to recent SEC filings, Adobe's DSO has remained relatively stable, hovering around 30 days, which suggests that the company maintains strong leverage over its customer base and effective collection processes within its recurring subscription-based revenue model across the Creative and Document Cloud segments.
The consistency in DSO indicates that the transition to subscription billing has successfully mitigated the volatility typically associated with enterprise software sales cycles. This efficiency in working capital management appears to be a key driver of the company's ability to maintain high free cash flow margins despite the ongoing investments in AI infrastructure.
Based on reported figures, the debt-to-EBITDA ratio has trended upward to 2.91 in 2026Q2, a shift that indicates a departure from the company's historically conservative balance sheet profile and suggests that debt service requirements are becoming a more prominent feature of the capital structure.
While the interest coverage ratio remains comfortable at 35.43, the rising debt load may limit future financial flexibility if the company faces a sustained downturn in enterprise IT spending. Investors should monitor whether this leverage is being utilized to fund share repurchases at the expense of maintaining a more robust liquidity buffer.
The P/E ratio is frequently misapplied to Adobe's business model because it fails to account for the significant non-cash impact of stock-based compensation, which obscures the true economic earnings available to shareholders and leads to an incomplete assessment of the company's actual profitability.
Analysts should instead prioritize P/FCF or EV/EBITDA, as these metrics better capture the cash-generative nature of the subscription model and strip away the accounting distortions caused by aggressive equity-based compensation. Relying solely on P/E may lead to an inaccurate valuation of the company's defensive moat and its ability to fund future R&D internally.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying ADBE stock.
Adobe Inc.'s current P/E ratio is 13.3x. The historical average is 43.8x.
Adobe Inc.'s current EV/EBITDA is 9.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 26.4x.
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%.
Based on historical data, Adobe Inc. is trading at a P/E of 13.3x. Compare with industry peers and growth rates for a complete picture.
Adobe Inc. has 88.6% gross margin and 36.6% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Adobe Inc.'s Debt/EBITDA ratio is 0.7x, indicating low leverage. A ratio below 2x is generally considered financially healthy.