| Intrinsic Valuation of: ADBE | |||||||||||
| Free Cash Flow Average and Growth over past 5Y | Key Statistics | ||||||||||
| Year | FCF | FCF (FCF/Revenue) | |||||||||
| 2020 | - | - | EPS (FY) | 17 | Market Cap | $100B | |||||
| 2021 | - | - (-) | P/E Ratio | 14 | Total Asset | $29B | |||||
| 2022 | $7B | - (-) | Net Income | $7B | Total Debt | $6B | |||||
| 2023 | $7B | -6.1% (-14.9%) | EBITDA | $10B | Total Liab | $18B | |||||
| 2024 | $8B | 13.4% (2.4%) | Opr Margin | 36.63 | Debt/Equity | 0.53 | |||||
| 2025 | $10B | 25.1% (13.2%) | PreTax Margin | 35.52 | BV/Share | -4 | |||||
| 5Y Average FCF | $8B | 10.6% (0.2%) | |||||||||
| Overall Market Assumptions: | |||||||||||
| Assumptions: | P/E for No-Growth Company: | 7.0 | |||||||||
| Perpetual Growth Rate (g): | 2.48% | Historical US Bond Yield: | 4.40% | ||||||||
| Discount Rate (WACC): | 10.82% | Current US Bond Yield: | 3.48% | ||||||||
| Forcasting Future Free Cash Flow for next 6Y | Modified Benjamin Graham's Intrinsic Value | ||||||||||
| Year | FCF Projection (10.6%) | ||||||||||
| 2026 | $10B | MBG Intrinsic Value | $154 | ||||||||
| 2027 | $11B | ||||||||||
| 2028 | $12B | ||||||||||
| 2029 | $13B | ||||||||||
| 2030 | $13B | ||||||||||
| 2031 | $14B | ||||||||||
| Terminal Value | $167B | Net Worth/Share | $29 | ||||||||
| DCF Valuation | DCF Valuation "What If" Scenario Table | ||||||||||
| Enterprise Value | $141B | Growth Rate | |||||||||
| (+) Cash & Cash Equivalents | $5B | $347 | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | ||||
| (-) Total Debt | $6B | WACC | 8.8% | 412 | 434 | 459 | 489 | 525 | |||
| Equity Value | $140B | 9.8% | 361 | 377 | 396 | 417 | 441 | ||||
| Shares Outstanding | 404,200,000 | 10.8% | 321 | 334 | 347 | 363 | 380 | ||||
| 11.8% | 289 | 299 | 309 | 321 | 334 | ||||||
| DCF Intrinsic Value | $347 | 12.8% | 263 | 270 | 278 | 287 | 297 | ||||
| Analyzed by QuantJuice (2025) | |||||||||||