Explain this page
Arphra AIPlain-English read on Adobe Inc.’s valuationRatios & metrics
Profitability, returns on capital, growth, and credit — all derived from the historical income statement, balance sheet, and cash flow rows in our data warehouse.
Quality composite
ATop tier
A snapshot of the latest fiscal year’s margins, returns on capital, balance-sheet strength and efficiency, computed from the income statement, balance sheet and cash-flow rows. Source income / balance / cash_flow.
Profitability
Gross margin88.6%
Operating margin36.6%
Net margin30.0%
ROE61.3%
ROA24.2%
ROIC55.4%
Liquidity & leverage
Current ratio1.00×
Quick ratio1.00×
Debt / equity0.57×
Net debt / EBITDA0.12×
Interest coverage33×
Efficiency & per-share
Asset turnover0.81×
Inventory days0
Days sales out.36
FCF / share$23.07
Book value / share$27.22
Valuation multiples
Price- and EV-based multiples plus shareholder yields. Snapshot at each fiscal year-end from key_metrics (FMP).
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Headline | |||||||||
| Market cap | — | — | — | $230.67B | $136.38B | — | — | — | — |
| Enterprise value | — | — | — | $229.12B | $137.59B | — | — | — | — |
| Multiples | |||||||||
| P / E | — | — | — | — | — | — | — | — | — |
| P / B | — | — | — | — | — | — | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — | — |
| EV / Sales | — | — | — | 10.65 | 5.79 | — | — | — | — |
| EV / FCF | — | — | — | 29.28 | 13.97 | — | — | — | — |
| Yields | |||||||||
| Earnings yield | — | — | — | +2.41% | +5.23% | — | — | — | — |
| Free cash flow yield | — | — | — | +3.39% | +7.22% | — | — | — | — |
| Dividend yield | — | — | — | — | — | — | — | — | — |
Profitability
Margin structure across the last 5 fiscal years
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Margins | |||||||||
| Gross margin | +88.18% | +87.70% | +87.87% | +89.04% | +88.61% | +87.51% | +89.80% | +90.85% | +87.12% |
| Operating margin | +36.76% | +34.64% | +34.26% | +31.35% | +36.63% | +34.54% | +35.07% | +33.76% | +34.65% |
| EBITDA margin | +42.29% | +40.07% | +40.11% | +37.00% | +41.02% | +40.01% | +38.20% | +40.01% | +39.90% |
| EBIT margin | +36.83% | +34.64% | +35.61% | +33.02% | +37.57% | +35.95% | +36.20% | +35.41% | +35.72% |
| Pre-tax margin | +36.14% | +34.12% | +35.03% | +32.23% | +36.75% | +34.00% | +33.73% | +35.32% | +34.96% |
| Net margin | +30.55% | +27.01% | +27.97% | +25.85% | +30.00% | +27.59% | +28.39% | +28.09% | +27.35% |
| Cost structure | |||||||||
| Cost of revenue / sales | +11.82% | +12.30% | +12.13% | +10.96% | +11.39% | +11.54% | +11.57% | +11.79% | +11.18% |
| R&D intensity | +16.09% | +16.97% | +17.89% | +18.34% | +18.07% | +18.21% | +17.87% | +18.53% | +17.69% |
| SG&A intensity | +34.25% | +35.14% | +34.85% | +33.91% | +33.91% | +33.80% | +33.64% | +33.79% | +33.59% |
| Effective tax rate | +15.48% | +20.84% | +20.16% | +19.78% | +18.37% | +20.00% | +20.19% | +19.54% | +19.49% |
Returns on capital
ROE / ROA / ROC / ROIC over the relevant capital base, plus the 3-step DuPont decomposition of ROE.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| Return on equity (ROE) | +32.59% | +33.85% | +32.86% | +39.42% | +61.34% | +41.69% | +43.61% | +41.84% | +42.02% |
| Return on assets (ROA) | +17.70% | +17.51% | +18.23% | +18.39% | +24.17% | +19.49% | +20.16% | +20.27% | +19.67% |
| Return on capital (ROC) | +29.80% | +32.64% | +32.28% | +33.44% | +47.65% | +37.45% | +38.37% | +36.15% | +38.27% |
| Return on invested capital (ROIC) | +24.77% | +25.45% | +26.35% | +27.58% | +39.02% | +29.91% | +31.06% | +30.08% | +30.21% |
| Asset turnover | +57.95% | +64.81% | +65.18% | +71.14% | +80.58% | +70.65% | +71.03% | +72.16% | +71.93% |
| DuPont · ROE decomposition | |||||||||
| Net margin | +30.55% | +27.01% | +27.97% | +25.85% | +30.00% | +27.59% | +28.39% | +28.09% | +27.35% |
| Asset turnover (× revenue / assets) | +57.95% | +64.81% | +65.18% | +71.14% | +80.58% | +70.65% | +71.03% | +72.16% | +71.93% |
| Equity multiplier (× assets / equity) | +184.10% | +193.33% | +180.28% | +214.32% | +253.77% | +213.93% | +216.27% | +206.40% | +213.61% |
Activity & efficiency
Turnover ratios and days-outstanding — how efficiently the business converts assets and working capital into sales and cash.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Turnover | |||||||||
| Asset turnover | 0.58 | 0.65 | 0.65 | 0.71 | 0.81 | 0.71 | 0.71 | 0.72 | 0.72 |
| Fixed-asset turnover | 7.46 | 7.61 | 8.13 | 9.70 | 10.88 | — | — | — | — |
| Inventory turnover | — | — | — | — | — | — | — | — | — |
| Receivables turnover | 8.41 | 8.53 | 8.73 | 10.38 | 10.14 | — | — | — | — |
| Payables turnover | 5.98 | 5.71 | 7.50 | 6.53 | 6.49 | — | — | — | — |
| Days outstanding | |||||||||
| Days sales outstanding (DSO) | 43.43 | 42.81 | 41.82 | 35.17 | 35.99 | — | — | — | — |
| Days inventory outstanding (DIO) | — | — | — | — | — | — | — | — | — |
| Days payables outstanding (DPO) | 61.06 | 63.90 | 48.69 | 55.88 | 56.21 | — | — | — | — |
| Cash conversion cycle | -17.64 | -21.09 | -6.86 | -20.71 | -20.21 | — | — | — | — |
Cash flow quality
How well reported earnings translate into operating and free cash flow, plus reinvestment intensity.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Operating CF / Net income | 1.50 | 1.65 | 1.35 | 1.45 | 1.41 | 1.39 | 1.42 | 1.42 | 1.40 |
| FCF / Net income | 1.43 | 1.56 | 1.28 | 1.41 | 1.38 | 1.41 | 1.30 | 1.35 | 1.39 |
| FCF margin | +43.67% | +42.01% | +35.77% | +36.38% | +41.45% | +38.79% | +36.91% | +37.91% | +37.95% |
| OCF margin | +45.80% | +44.52% | +37.62% | +37.46% | +42.20% | +38.41% | +40.24% | +39.91% | +38.18% |
| CapEx / Revenue | +2.09% | +2.51% | +1.85% | +1.08% | +0.75% | +1.24% | +1.22% | +1.26% | +1.23% |
| CapEx / D&A | 0.42 | 0.52 | 0.41 | 0.26 | 0.22 | — | — | — | — |
| Stock-based comp / Revenue | +6.77% | +8.18% | +8.85% | +8.75% | +8.17% | — | — | — | — |
Per-share & shareholder yield
EPS, book value, sales, cash flow and dividends per share — plus payout / retention.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| EPS · diluted | 10.02 | 10.10 | 11.83 | 12.36 | 16.70 | 23.53 | 26.40 | 29.59 | 30.88 |
| EPS · basic | 10.10 | 10.13 | 11.88 | 12.44 | 16.73 | 23.91 | 26.55 | 29.59 | 31.38 |
| Book value / share | 30.76 | 29.83 | 35.99 | 31.34 | 27.22 | 40.37 | 42.92 | 48.23 | 50.96 |
| Tangible BV / share | 0.64 | -0.39 | 5.72 | 1.19 | -4.05 | 40.37 | 42.92 | 48.23 | 50.96 |
| Sales / share | 32.82 | 37.38 | 42.29 | 47.79 | 55.67 | 61.02 | 65.94 | 71.84 | 78.29 |
| Operating CF / share | 15.03 | 16.64 | 15.91 | 17.90 | 23.49 | 23.43 | 26.54 | 28.67 | 29.89 |
| Free cash flow / share | 14.33 | 15.70 | 15.12 | 17.39 | 23.07 | 23.67 | 24.34 | 27.24 | 29.72 |
| Dividends / share | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Payout ratio | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Retention ratio | +100.00% | +100.00% | +100.00% | +100.00% | +100.00% | +100.00% | +100.00% | +100.00% | +100.00% |
Growth
Year-over-year change for headline P&L lines, plus through-cycle CAGR
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E | 8y CAGR |
|---|---|---|---|---|---|---|---|---|---|---|
| Top-line | ||||||||||
| Revenue · YoY | — | +11.54% | +10.24% | +10.80% | +10.53% | +9.60% | +8.83% | +8.61% | +9.22% | +9.92% |
| Gross profit · YoY | — | +10.93% | +10.45% | +12.27% | +10.00% | +8.25% | +11.67% | +9.88% | +4.74% | +9.75% |
| Profit | ||||||||||
| Operating income · YoY | — | +5.10% | +9.05% | +1.37% | +29.15% | +3.35% | +10.50% | +4.57% | +12.10% | +9.11% |
| EBITDA · YoY | — | +5.69% | +10.33% | +2.22% | +22.52% | +6.91% | +3.91% | +13.77% | +8.90% | +9.12% |
| Net income · YoY | — | -1.37% | +14.13% | +2.43% | +28.24% | +0.80% | +11.98% | +7.49% | +6.32% | +8.41% |
| Operating | ||||||||||
| EBIT · YoY | — | +4.88% | +13.35% | +2.72% | +25.79% | +4.86% | +9.59% | +6.24% | +10.17% | +9.50% |
| R&D · YoY | — | +17.60% | +16.27% | +13.56% | +8.87% | +10.50% | +6.81% | +12.57% | +4.31% | +11.23% |
| Per-share | ||||||||||
| EPS · diluted · YoY | — | +0.80% | +17.13% | +4.48% | +35.11% | +40.90% | +12.21% | +12.06% | +4.37% | +15.11% |
| EPS · basic · YoY | — | +0.30% | +17.28% | +4.71% | +34.49% | +42.90% | +11.08% | +11.44% | +6.05% | +15.22% |
Credit & leverage
Balance-sheet health + interest coverage + liquidity. Coverage ratios use period-end debt and trailing interest expense.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Leverage | |||||||||
| Total debt | $4.67B | $4.63B | $4.08B | $6.06B | $6.65B | $6.79B | $7.46B | $8.08B | $8.56B |
| Net debt | $829M | $397M | -$3.06B | -$1.56B | $1.22B | -$1.63B | -$1.27B | -$1.64B | -$2.05B |
| Net debt / EBITDA | 0.12 | 0.06 | -0.39 | -0.20 | 0.12 | -0.16 | -0.12 | -0.13 | -0.15 |
| Debt / equity | 0.32 | 0.33 | 0.25 | 0.43 | 0.57 | 0.39 | 0.40 | 0.39 | 0.39 |
| Debt / assets | +17.15% | +17.06% | +13.70% | +20.03% | +22.54% | +18.40% | +18.68% | +18.94% | +18.31% |
| Equity / assets | +54.32% | +51.72% | +55.47% | +46.66% | +39.41% | +46.74% | +46.24% | +48.45% | +46.82% |
| Coverage | |||||||||
| EBITDA / interest expense | 59.07 | 62.99 | 68.88 | 48.52 | 37.07 | 48.78 | 45.40 | 49.22 | 47.45 |
| Operating income / interest | 51.35 | 54.45 | 58.85 | 41.10 | 33.10 | 42.11 | 41.68 | 41.53 | 41.21 |
| Interest expense | $113M | $112M | $113M | $164M | $263M | $213.65M | $238.52M | $250.32M | $282.79M |
| Liquidity | |||||||||
| Current ratio | 1.25 | 1.11 | 1.34 | 1.07 | 1.00 | — | — | — | — |
| Quick ratio | 1.11 | 1.00 | 1.22 | 0.95 | 0.88 | — | — | — | — |
| Cash ratio | 0.55 | 0.52 | 0.87 | 0.72 | 0.53 | — | — | — | — |
| Working capital | $1.74B | $868M | $2.83B | $711M | -$37M | — | — | — | — |
| Working capital / revenue | +11.00% | +4.93% | +14.60% | +3.31% | -0.16% | — | — | — | — |
Sourced from key_metrics + financial_ratios (loaded by load_fundamentals_extended.py).
Valuation
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| P / E | — | — |
| P / B | — | — |
| EV / EBITDA | — | — |
| EV / Sales | 5.79x | 10.65x |
| Earnings yield | 5.2% | 2.4% |
| FCF yield | 7.2% | 3.4% |
Returns
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| Gross margin | — | — |
| Operating margin | — | — |
| Net margin | — | — |
| ROE | 61.3% | 39.4% |
| ROA | 24.2% | 18.4% |
| ROIC | 36.7% | 25.4% |
Leverage & liquidity
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| Debt / equity | — | — |
| Net debt / EBITDA | 0.12 | -0.20 |
| Interest coverage | — | — |
| Current ratio | 1.00x | 1.07x |
| Quick ratio | — | — |
Methodology. ROE / ROA / ROC use period-end balance-sheet denominators (no average-of- period smoothing). ROIC = Operating Income × (1 − inferred effective tax rate) over invested capital, with the effective tax inferred from net-to-operating income when both are positive and a 25% default otherwise. Net debt / EBITDA, debt ratios, and interest-coverage ratios are calculated point-in-time at each fiscal year-end. TTM = trailing 4 quarters (income / cash flow summed, balance sheet = most-recent quarterly snapshot). Through-cycle CAGR in the Growth panel uses the geometric mean of first-to-last period growth across the window (positive values only).