Adobe Inc. ADBE

Name: ADBE Crucible Score
Creator: Kaladin Capital Intelligence

TechnologySoftware - InfrastructureNASDAQ📅 Scored March 24, 2026

Price at analysis: $237.25

Crucible Score

81.8

A-

Quality × Value Composite

KQI — Quality

76.7

B+

Fundamental Quality Index

KVI — Value

84.1

A-

Valuation Attractiveness Index

Crucible Verdict — ADBE

Adobe Inc. (ADBE) delivers solid fundamentals with an 81.8 Crucible Score, anchored by strong financial quality (88) and CEO Shantanu Narayen's 19-year track record of beating all 22 earnings estimates. The stock trades at a meaningful 32% discount to fair value despite ADBE's market-leading creative software franchise. Weak market position scores suggest competitive pressure bears monitoring as AI reshapes the creative landscape.

— Kal, Kaladin Capital Intelligence

◆ KQI Quality Dimensions

Financial Quality

88.0

Growth Profile

75.8

Moat Durability

75.1

Management Effectiveness

72.2

Diversification & Resilience

80.0

Market Position

56.0

Weakest dimension: Market Position (56.0)

◆ KVI Value Dimensions

DCF Margin of Safety

69.4

FCF Yield & Cash Returns

83.1

Relative Valuation

92.4

Growth-Adjusted Value

91.8

Historical Valuation

94.5

Macro Context

60.3

◆ DCF Valuation Scenarios

Bear Case

$198.52

Base Case

$312.18

Bull Case

$468.73

Price at Analysis

$237.25

Scenario	Fair Value	Rev CAGR (5yr)	Terminal Margin	WACC
🔴 Bear	$198.52	7.0%	34.0%	12.8%
🟢 Base	$312.18	10.0%	37.0%	12.0%
🟢 Bull	$468.73	13.0%	40.0%	11.2%

Key Assumptions: WACC derived from CAPM using 4.39% risk-free rate, 1.53 beta, and 5.5% ERP yielding ~12.8% base cost of equity; bear/base/bull scenarios vary ERP from 5.8% to 4.7%. Revenue growth anchored on 5-year CAGR of ~10.8%, with bear reflecting AI competition headwinds slowing growth to 7% and compressing margins, base continuing trend at 10%, and bull assuming AI-driven product expansion accelerating growth to 13% with margin improvement. FCF conversion remains strong given minimal capex intensity (~1% of revenue) consistent with historical levels.

◆ Financial Snapshot

Profitability

Gross Margin89.1%

Operating Margin36.6%

Net Margin29.5%

ROIC34.4%

ROE33.1%

Balance Sheet

Balance SheetCR: 0.91

Cash ConversionFCF/EPS: 1.43x

Capital IntensityCapex/Rev: 0.8%

Altman Z-Score7.24 (Safe)

Piotroski F-Score7/9 (Good)

Growth

Revenue CAGR10.8% CAGR

Earnings CAGR10.3% CAGR

Growth ConsistencyCV: 0.36

Segment Breadth2/3 growing (67%)

Quarterly TrendMargin↑, WC↓

Earnings CredibilityConsistent Beater

◆ Revenue Breakdown — FY2025

By Segment

Digital Media74.3%

Digital Experience24.7%

Print And Publishing1.1%

By Geography

Americas59.4%

EMEA26.5%

Asia14.1%

Total Revenue

$23.8B

Fiscal Year 2025

◆ Analyst Consensus & Leadership

Analyst Price Targets

Avg Target (Last Quarter)$374.63

Analysts Covering (Quarter)16

Avg Target (Last Year)$415.11

Analysts (Year)35

Leadership & Governance

CEOShantanu Narayen(Founder) · 19 years

CEO Ownership< 1%

Compensation95% performance-based

Insider ActivitySelling

Capital AllocationROIC 34.4% vs WACC 3.1%

Earnings Beat Rate100% (22/22)

◆ Company Profile

Adobe Inc. operates as a diversified software company worldwide.

CEO

Shantanu Narayen

Employees

30709

Headquarters

San Jose, CA, US

IPO Date

August 13, 1986

Exchange

NASDAQ

Website

adobe.com

◆ Related Companies in Our Universe

Other Technology companies scored by the Crucible:

NICE80.7A-DECK79.9A-INTU79.9A-EXEL78.3A-MTCH78.2A-TTD78.0B+PCTY75.8B+

Methodology All Scores Crucible Briefs Performance @KaladinCI

Analysis conducted March 24, 2026 based on most recent SEC filings. Updated quarterly, after new SEC filings.

Point-in-time fundamental analysis. Not investment advice. Scores reflect company quality and valuation at time of analysis and may not reflect current market conditions.