Adobe Systems Revenue vs. Current Valuation
| ADBE Stock | USD 469.39 6.56 1.42% |
Total Revenue | First Reported 1986-02-28 | Previous Quarter 5 B | Current Value 5.2 B | Quarterly Volatility 1.3 B |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.7 | 0.8677 |
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| Net Profit Margin | 0.17 | 0.2869 |
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| Operating Profit Margin | 0.31 | 0.3145 |
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| Pretax Profit Margin | 0.32 | 0.3094 |
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| Return On Assets | 0.18 | 0.138 |
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| Return On Equity | 0.28 | 0.2767 |
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For Adobe Systems profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Adobe Systems to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Adobe Systems Incorporated utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Adobe Systems's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Adobe Systems Incorporated over time as well as its relative position and ranking within its peers.
Adobe |
Is Adobe Systems' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Adobe Systems. If investors know Adobe will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Adobe Systems listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.50) | Earnings Share 10.45 | Revenue Per Share 43.762 | Quarterly Revenue Growth 0.113 | Return On Assets 0.1572 |
The market value of Adobe Systems rporated is measured differently than its book value, which is the value of Adobe that is recorded on the company's balance sheet. Investors also form their own opinion of Adobe Systems' value that differs from its market value or its book value, called intrinsic value, which is Adobe Systems' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Adobe Systems' market value can be influenced by many factors that don't directly affect Adobe Systems' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Adobe Systems' value and its price as these two are different measures arrived at by different means. Investors typically determine if Adobe Systems is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Adobe Systems' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Adobe Systems rporated Current Valuation vs. Revenue Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Adobe Systems's current stock value. Our valuation model uses many indicators to compare Adobe Systems value to that of its competitors to determine the firm's financial worth. Adobe Systems Incorporated is rated third in revenue category among related companies. It is rated second in current valuation category among related companies reporting about 10.54 of Current Valuation per Revenue. At present, Adobe Systems' Total Revenue is projected to increase significantly based on the last few years of reporting.Comparative valuation analysis is a catch-all model that can be used if you cannot value Adobe Systems by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Adobe Systems' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Adobe Systems' earnings, one of the primary drivers of an investment's value.Adobe Revenue vs. Competition
Adobe Systems Incorporated is rated third in revenue category among related companies. Market size based on revenue of Information Technology industry is presently estimated at about 274.81 Billion. Adobe Systems holds roughly 19.41 Billion in revenue claiming about 7% of equities under Information Technology industry.
Adobe Current Valuation vs. Revenue
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Adobe Systems |
| = | 19.41 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Adobe Systems |
| = | 204.61 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Adobe Current Valuation vs Competition
Adobe Systems Incorporated is rated second in current valuation category among related companies. After adjusting for long-term liabilities, total market size of Information Technology industry is presently estimated at about 3.51 Trillion. Adobe Systems holds roughly 204.61 Billion in current valuation claiming about 6% of equities under Information Technology industry.
Adobe Systems Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Adobe Systems, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Adobe Systems will eventually generate negative long term returns. The profitability progress is the general direction of Adobe Systems' change in net profit over the period of time. It can combine multiple indicators of Adobe Systems, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -256.5 M | -243.7 M | |
| Operating Income | 7.6 B | 8 B | |
| Income Before Tax | 7.8 B | 8.2 B | |
| Total Other Income Expense Net | 235.8 M | 247.6 M | |
| Net Income | 6.2 B | 6.6 B | |
| Income Tax Expense | 1.6 B | 1.7 B | |
| Net Income Applicable To Common Shares | 5.5 B | 5.7 B | |
| Net Income From Continuing Ops | 6.2 B | 6.6 B | |
| Non Operating Income Net Other | 25.3 M | 28.3 M | |
| Net Interest Income | -101.7 M | -106.8 M | |
| Interest Income | 309.4 M | 324.8 M | |
| Change To Netincome | 2.1 B | 2.2 B | |
| Net Income Per Share | 5.28 | 5.55 | |
| Income Quality | 1.56 | 2.66 | |
| Net Income Per E B T | 0.93 | 0.57 |
Adobe Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Adobe Systems. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Adobe Systems position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Adobe Systems' important profitability drivers and their relationship over time.
Use Adobe Systems in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Adobe Systems position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Adobe Systems will appreciate offsetting losses from the drop in the long position's value.Adobe Systems Pair Trading
Adobe Systems Incorporated Pair Trading Analysis
The ability to find closely correlated positions to Adobe Systems could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Adobe Systems when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Adobe Systems - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Adobe Systems Incorporated to buy it.
The correlation of Adobe Systems is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Adobe Systems moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Adobe Systems rporated moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Adobe Systems can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Adobe Systems position
In addition to having Adobe Systems in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Rubber and Plastic Products theme has 27 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Rubber and Plastic Products Theme or any other thematic opportunities.
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Check out Trending Equities. Note that the Adobe Systems rporated information on this page should be used as a complementary analysis to other Adobe Systems' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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When running Adobe Systems' price analysis, check to measure Adobe Systems' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Adobe Systems is operating at the current time. Most of Adobe Systems' value examination focuses on studying past and present price action to predict the probability of Adobe Systems' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Adobe Systems' price. Additionally, you may evaluate how the addition of Adobe Systems to your portfolios can decrease your overall portfolio volatility.
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To fully project Adobe Systems' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Adobe Systems rporated at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Adobe Systems' income statement, its balance sheet, and the statement of cash flows.