| Intrinsic Valuation of: ADBE | |||||||||||
| Free Cash Flow Average and Growth over past 5Y | Key Statistics | ||||||||||
| Year | FCF | FCF (FCF/Revenue) | |||||||||
| 2020 | - | - | EPS (FY) | 16 | Market Cap | $166B | |||||
| 2021 | - | - (-) | P/E Ratio | 25 | Total Asset | $30B | |||||
| 2022 | $7B | - (-) | Net Income | $6B | Total Debt | $4B | |||||
| 2023 | $7B | 7.5% (-3.6%) | EBITDA | $8B | Total Liab | $16B | |||||
| 2024 | $7B | -6.1% (-14.9%) | Opr Margin | 0.36 | Debt/Equity | 0.29 | |||||
| 2025 | $8B | 13.4% (2.4%) | PreTax Margin | 35.21 | BV/Share | 1 | |||||
| 5Y Average FCF | $7B | 4.9% (-5.4%) | |||||||||
| Overall Market Assumptions: | |||||||||||
| Assumptions: | P/E for No-Growth Company: | 7.0 | |||||||||
| Perpetual Growth Rate (g): | 2.5% | Historical US Bond Yield: | 4.4% | ||||||||
| Discount Rate (WACC): | 7.4% | Current US Bond Yield: | 3.5% | ||||||||
| Forcasting Future Free Cash Flow for next 6Y | Modified Benjamin Graham's Intrinsic Value | ||||||||||
| Year | FCF Projection (4.9%) | ||||||||||
| 2026 | $8B | MBG Intrinsic Value | $139 | ||||||||
| 2027 | $9B | ||||||||||
| 2028 | $9B | ||||||||||
| 2029 | $10B | ||||||||||
| 2030 | $10B | ||||||||||
| 2031 | $10B | ||||||||||
| Terminal Value | $218B | Net Worth/Share | $33 | ||||||||
| DCF Valuation | DCF Valuation "What If" Scenario Table | ||||||||||
| Enterprise Value | $186B | Growth Rate | |||||||||
| (+) Cash & Cash Equivalents | $8B | $446 | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | ||||
| (-) Total Debt | $4B | WACC | 7.3% | 393 | 421 | 455 | 496 | 549 | |||
| Equity Value | $189B | 7.4% | 390 | 417 | 450 | 491 | 542 | ||||
| Shares Outstanding | 424,200,000 | 7.4% | 386 | 413 | 446 | 485 | 535 | ||||
| 7.9% | 356 | 378 | 405 | 436 | 475 | ||||||
| DCF Intrinsic Value | $446 | 8.4% | 331 | 349 | 371 | 396 | 427 | ||||
| Analyzed by QuantJuice (2025) | |||||||||||