Adobe Systems is undervalued at 455.99 per share with modest projections ahead.
The firm shows a Beta (market volatility) of 1.6843, which signifies a somewhat significant risk relative to the market. Let's try to break down what Adobe's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Adobe Systems will likely underperform. Even though it is essential to pay attention to
Adobe Systems historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy towards foreseeing any stock's
future performance is to check both, its past performance charts as well as the business as a whole, including all available
technical indicators. Adobe Systems exposes twenty-one different technical indicators, which can help you to evaluate its performance.
Adobe Systems has an expected return of -0.25%. Please be advised to confirm Adobe Systems
maximum drawdown,
semi variance, and the
relationship between the
jensen alpha and
potential upside to decide if
Adobe Systems performance from the past will be repeated at some point in the near future.
The performance of Adobe Systems Incorporated in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Adobe Systems'
stock prices. When investing in Adobe Systems, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Adobe Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Adobe Systems carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.
How important is Adobe Systems's Liquidity
Adobe Systems
financial leverage refers to using borrowed capital as a funding source to finance Adobe Systems Incorporated ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Adobe Systems financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Adobe Systems' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Adobe Systems' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Adobe Systems's total debt and its cash.
What do experts say about Adobe?
Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
Analysis ConsensusBreaking down Adobe Systems Further
Adobe Systems retains a total of 475.8 Million outstanding shares. The majority of Adobe Systems
outstanding shares are owned by
other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Adobe Systems to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Adobe Systems. Please pay attention to any change in the institutional holdings of Adobe Systems as this could imply that something significant has changed or about to change at the company. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.
| 2010 | 2017 | 2021 | 2022 (projected) |
Consolidated Income | 1.69 B | 4.82 B | 2.59 B | 2.49 B | Direct Expenses | 1.01 B | 1.86 B | 1.19 B | 1.03 B |
Ownership Breakdown
| Retail Investors14.42% | | Institutions85.17% |
| Retail Investors | 14.42 |
| Insiders | 0.41 |
| Institutions | 85.17 |
Our perspective of the latest Adobe Systems surge
The kurtosis is down to 0.51 as of today. Adobe Systems exhibits very low volatility with skewness of -0.49 and kurtosis of 0.51. However, we advise investors to further study Adobe Systems technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Adobe Systems' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Adobe Systems' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Adobe Systems Implied Volatility
Adobe Systems' implied volatility exposes the market's sentiment of Adobe Systems stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Adobe Systems' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Adobe Systems stock will not fluctuate a lot when Adobe Systems' options are near their expiration.
Our Final Perspective on Adobe Systems
Although some firms under the software—infrastructure industry are still a bit expensive, Adobe Systems may offer a potential longer-term growth to shareholders. To summarize, as of the 15th of June 2022, we believe that at this point, Adobe Systems is very steady with
very small chance of financial distress within the next 2 years. From a slightly different point of view, the entity appears to be
undervalued. Our overall 90 days buy-hold-sell advice on the firm is
Strong Hold.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Adobe Systems Incorporated. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com