Adobe Systems Incorporated ($ADBE) Possible Buy to $216 Confident Investor Rating: Good

Company name Adobe Systems Incorporated
Stock ticker ADBE
Live stock price [stckqut]ADBE[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Good
EPS growth Good
P/E growth Good
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $271.16
Target stock price (averages with growth) $362.76
Target stock price (averages with no growth) $246.41
Target stock price (manual assumptions) $267.12

 

The following company description is from Google Finance: https://finance.google.com/finance?q=adbe

Adobe Systems Incorporated is a software company. The Company offers products and services used by professionals, marketers, knowledge workers, application developers, enterprises and consumers for creating, managing, delivering, measuring, optimizing and engaging with compelling content and experiences. It operates through three segments: Digital Media, Digital Marketing, and Print and Publishing. Its Digital Media segment provides tools and solutions that enable individuals, small and medium businesses and enterprises to create, publish, promote and monetize their digital content. Its Digital Marketing segment provides solutions and services for how digital advertising and marketing are created, managed, executed, measured and optimized. Its Print and Publishing segment addresses market opportunities ranging from the diverse authoring and publishing needs of technical and business publishing to its legacy type and original equipment manufacturer (OEM) printing businesses.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Adobe Systems Incorporated as long as the indicators that I describe in my book The Confident Investor are favorable. I am adding Adobe Systems to my Watch List.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Adobe Systems Incorporated calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $175.24
  • Growth: 0.2
  • Current EPS (TTM): $3.39
  • P/E: 51
  • Future EPS Calc: $8.43
  • Future Stock Price Calc: $430.2
  • Target stock price: $267.12

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I hope that this makes you a Confident Investor.

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