ADBE
ADOBE INC.NasdaqValuation snapshot
Below base casePrice is between the bear and base cases.
Price as of Aug 17, 2026 · Valuation Aug 16, 2026
What drives ADBE's base case?
base-case thesisAdobe just raised its full-year sales target to about $26.5 billion after a record quarter, and the subscriptions it has already signed up — $27.1 billion of recurring revenue plus $22.3 billion of contracted backlog — give good visibility into next year. Profitability has sat in a tight band, between roughly 34 and 38 cents of operating profit per dollar of sales in each of the past eight quarters, and management still targets its usual level for the full year. This case assumes the free-tier push and the pause on Creative Cloud price increases cost a couple of points of growth in the near term but eventually pay off as some of those users convert, while AI products — where recurring revenue tripled past $500 million — take over from price increases as the growth engine. The result is a gradual glide from about 10% growth toward the mid single digits rather than a cliff.
What shapes the assumptions
Raised FY26 revenue target of $26.5–$26.6 billion, up from $23.8 billion in FY25
Company revenue guidance
Raises revenue growth
$27.1 billion recurring revenue base plus $22.3 billion contracted backlog
Annual recurring revenue and remaining performance obligations
Raises terminal growth
Eight straight quarters of operating profitability between about 34% and 38% of sales
Reported quarterly operating margin
Informs operating margin
Only $37 million of quarterly capital spending against $6.4 billion of quarterly sales
Capital expenditure intensity
Lowers reinvestment
2025 U.S. Tax Act restores immediate deduction of domestic research spending
Effective cash tax rate
Lowers tax rate
Each driver links a business metric to the forecast assumption it shapes — the basis for this case, not investment advice.
Why the gap?
The market is pricing this as if revenue grows 3.7% a year. Over the last 5 years it grew 11.9% a year — so the price assumes far less than it has delivered.
What else could explain it?›
- Or, holding growth steady
- the price is also consistent with a 30.1% operating margin, against the 36.5% assumed here.
- How confident is this estimate?
- Robustness 59.0/10 (Moderate) — some of any gap is our own uncertainty rather than disagreement.
- What would change the answer?
- Which assumption this valuation swings on, and by how much.
Many combinations of assumptions reproduce the same price. These are ways to read what the market might be expecting, not the market's actual view. How this is worked out
Research & assumptions
Inspect the valuation thesis, cases, risks, evidence, and model inputs.
View details
Research & assumptions
Inspect the valuation thesis, cases, risks, evidence, and model inputs.
Three independently researched cases generated automatically from published financials. Every assumption is justified and cited; the discount rate is computed from researched market inputs.
Base inputs from financials
source period →Base revenue (TTM)
$25.2B
Diluted shares
402,500,000
Net cash
$5.5B
Bear
low confidence$205.57
IV / share
-22.1% vs $264.02
- Explicit cash flows
- $47.60
- Terminal value
- $144.35
- Net cash
- $13.62
- Intrinsic value / share
- $205.57
70.2% of the value rests on the terminal value — high dependency. A small change to terminal growth moves the valuation a lot — see terminal growth below.
Revenue growth8.0% → 6.0% → 4.5% → 3.5% → 3.0%medium
How derived: Starting from the fact that reported growth of 12.7% in Q2 FY26 sits on top of ~$480M of acquired Semrush ARR and favorable FX while the organic ARR guide was cut roughly two points and Creative Cloud price increases were deferred, this case assumes underlying organic demand is already high-single-digit and decays toward low-single-digit as AI-native creative tools commoditize seat-based Creative Cloud and the freemium pivot converts poorly.
Why this confidence: Management explicitly disclosed the organic ARR guidance cut and its causes ↑, Sixteen years of double-digit reported growth make a fast decay to 3% a structural break, not an extrapolation ↓, Five-year horizon spans an unresolved CEO succession and an unsettled AI competitive landscape ↓
Evidence for
- Management lowered second-half ARR growth expectations, attributing roughly half the reduction to deferring planned Creative Cloud price-line optimizations and the rest to a freemium user-acquisition pivot.[Adobe (ADBE) Q2 2026 Earnings Call Transcript]· primary
- Reported FY26 total ARR growth of ~10.2% includes approximately $480M of acquired Semrush ARR that the original organic target excluded, implying organic ARR growth in the mid-to-high single digits.[Adobe Q2 FY2026 results analysis]· secondary
- Adobe shares fell ~23% in the first ten weeks of 2026 as investors questioned whether the company can outpace AI-driven disruption, and CEO Shantanu Narayen announced he will step down once a successor is named.[Adobe CEO Shantanu Narayen says he will step down]· secondary
Evidence against
- Q2 FY26 revenue reached a record $6.62B, up 13% year over year (11% in constant currency), and Adobe raised its FY26 revenue target to $26.50–$26.60B — an acceleration versus the steady ~10.5% growth of FY23–FY25.[Adobe Reports Record Q2 Results]· primary
- Remaining Performance Obligations of $22.27B at quarter end provide a contracted backlog that cushions near-term revenue against demand shocks.[Adobe Q2 FY2026 Form 10-Q summary]· primary
Operating margin32.0%medium
How derived: Starting from the reported GAAP operating margin of 33.8% in Q2 FY26 and ~36% across the trailing four quarters, this case assumes generative-AI inference costs, a freemium funnel that carries serving costs before it monetizes, and defensive R&D and sales spending grind the margin down to about 32% rather than expanding it.
Why this confidence: Four quarters of disclosed GAAP operating margins anchor the starting level ↑, Company reaffirms a much higher non-GAAP margin target, so the assumed compression is a judgment against guidance ↓, AI inference cost per user is not separately disclosed, so the drag is estimated ↓
Evidence for
- Q2 FY26 GAAP operating margin of 33.8% was below the 37.8% posted in Q1 FY26 and below the 36.5% of Q4 FY25, and GAAP EPS absorbed a $0.17 non-cash goodwill impairment charge.[Adobe Reports Record Q2 Results]· primary
- Management is funding an aggressive freemium user-acquisition push through Adobe and Firefly, which adds serving and acquisition cost ahead of the associated revenue.[Adobe (ADBE) Q2 2026 Earnings Call Transcript]· primary
Evidence against
- Adobe reaffirmed a FY26 non-GAAP operating margin target of approximately 45.0%, well above the level assumed here even after the stock-based-compensation gap between GAAP and non-GAAP.[Adobe Q2 FY26 8-K exhibit (FY26 targets)]· primary
Tax rate22.0%high
How derived: Starting from the ~22.5% GAAP tax rate Adobe assumes in its own FY26 targets, this case holds close to that level rather than taking credit for the 2025 U.S. Tax Act's R&D-expensing benefit, since a bear path with weaker foreign-derived intangible income earns less of the low-tax mix.
Why this confidence: Rate is taken directly from the company's own disclosed guidance assumption ↑, Tax rates are the least volatile of the five assumptions over a five-year window ↑, Pending international tax-provision changes effective fiscal 2027 add some uncertainty ↓
Evidence for
- Adobe's own Q2 FY26 target assumptions specify a GAAP tax rate of approximately 22.5% versus a non-GAAP rate of approximately 18.0%.[Adobe Q2 FY26 8-K exhibit]· primary
Evidence against
- Adobe disclosed that the 2025 U.S. Tax Act restores immediate expensing of domestic R&D and modifies international provisions, which it anticipates will reduce effective cash tax rates for fiscal 2026 and beyond.[Adobe Q2 FY2026 Form 10-Q summary]· primary
Reinvestment rate35.0%low
How derived: Starting from Adobe's very light physical capex of $37M in Q1 FY26 against ~$6.4B of quarterly revenue, this case nonetheless assumes a high share of after-tax profit is reinvested because defending the franchise requires heavier acquisitions like the $1.9B Semrush deal, elevated AI R&D, and AI compute capacity — spending that buys defense rather than growth.
Why this confidence: Adobe does not disclose a reinvestment rate, so this is inferred from capex, R&D, and M&A cash flows ↓, Future acquisition cadence and AI compute spend are inherently unpredictable ↓, Reported capex and the Semrush purchase price are hard disclosed figures bracketing the range ↑
Evidence for
- Adobe paid $1.9 billion in cash for Semrush, closing April 28, 2026, showing that growth is increasingly being bought rather than generated organically.[Adobe Completes Semrush Acquisition]· primary
Evidence against
- Physical capital intensity is minimal — capital expenditures were just $37 million in the quarter ended February 27, 2026 — and six-month operating cash flow rose 10% to $5.12 billion.[Adobe Q1/Q2 FY2026 Form 10-Q cash-flow summary]· primary
- Adobe's board authorized $25 billion of share repurchases through April 2030, indicating management sees surplus capital beyond reinvestment needs.[Adobe 8-K, April 2026 repurchase authorization]· primary
Terminal growth2.0%medium
How derived: Starting from an organic ARR growth rate already slowing into the high single digits and a deferred pricing lever, this case assumes Adobe matures into a slower-than-economy software franchise at 2.0%, below the 4.7% ten-year Treasury yield so the terminal value stays economically sound.
Why this confidence: Terminal rate is capped below the observable 10-year Treasury yield, a disciplined bound ↑, Perpetual growth for a business facing an unresolved technology transition is unknowable ↓
Evidence for
- Deferral of Creative Cloud price-line optimizations removes the pricing lever that historically supplemented Adobe's unit growth, suggesting a lower steady-state escalator.[Adobe (ADBE) Q2 2026 Earnings Call Transcript]· primary
Evidence against
- Total ending ARR of $27.10 billion exceeds trailing-twelve-month revenue of about $25.2 billion, indicating the installed subscription base is still expanding faster than recognized revenue.[Adobe Reports Record Q2 Results]· primary
Base
medium confidence$316.98
IV / share
+20.1% vs $264.02
- Explicit cash flows
- $66.76
- Terminal value
- $236.60
- Net cash
- $13.62
- Intrinsic value / share
- $316.98
74.6% of the value rests on the terminal value — high dependency. A small change to terminal growth moves the valuation a lot — see terminal growth below.
base revenue growth (avg 8%) runs well above the trailing -8% trend
Revenue growth10.0% → 9.0% → 8.0% → 7.0% → 6.5%high
How derived: Starting from Adobe's own raised FY26 target of $26.50–$26.60B — roughly 11.5% growth on FY25's $23.769B, of which about two points is acquired Semrush ARR and currency — this case assumes the durable organic rate is about 10% and glides down through the high single digits as the large installed base makes each incremental point harder, consistent with the steady 10.2%–10.8% posted in FY23, FY24 and FY25.
Why this confidence: Year one sits inside Adobe's own raised, publicly issued FY26 revenue guidance ↑, Three consecutive fiscal years of tightly clustered ~10.2%–10.8% growth make the starting rate well-established ↑, Years three through five extend beyond any company guidance ↓
Evidence for
- Adobe raised its full-year FY26 revenue target to $26.50–$26.60 billion and guided Q3 FY26 to $6.67–$6.72 billion.[Adobe Q2 FY26 8-K exhibit]· primary
- Ending ARR reached $27.10 billion, above trailing-twelve-month revenue of about $25.2 billion, providing visibility into next year's recognized revenue.[Adobe Reports Record Q2 Results]· primary
- Remaining Performance Obligations stood at $22.27 billion with 67% classified as current, a contracted backlog supporting near-term growth.[Adobe Q2 FY2026 Form 10-Q summary]· primary
Evidence against
- Management lowered second-half ARR growth expectations organically, with roughly half the reduction from deferring Creative Cloud price-line optimizations, implying the 11.5% reported FY26 rate is not fully organic.[Adobe (ADBE) Q2 2026 Earnings Call Transcript]· primary
Operating margin36.5%high
How derived: Starting from the trailing four quarters of reported GAAP operating margin, which averaged roughly 36% and ranged from 33.8% to 37.8%, this case assumes Adobe holds a modestly better 36.5% as AI monetization scales against the ~45% non-GAAP target, with the gap to non-GAAP reflecting persistent stock-based compensation and intangible amortization.
Why this confidence: Eight quarters of disclosed operating margins in a tight ~34%–38% band ↑, Company reaffirmed its own FY26 margin target at the most recent report ↑, Semrush purchase-accounting amortization is a new and not-yet-quantified GAAP drag ↓
Evidence for
- Adobe reaffirmed an approximately 45.0% non-GAAP operating margin target for FY26 alongside raised revenue and EPS guidance.[Adobe Q2 FY26 8-K exhibit]· primary
- Reported quarterly GAAP operating margins ranged from 34.9% to 37.9% across the last eight quarters, a narrow and stable band.[Adobe Reports Record Q2 Results]· primary
Evidence against
- Q2 FY26 GAAP operating margin of 33.8% was the weakest of the last eight quarters and GAAP EPS included a $0.17 non-cash goodwill impairment charge, showing the band can break lower.[Adobe Reports Record Q2 Results]· primary
Tax rate20.0%high
How derived: Starting from Adobe's disclosed guidance assumptions of a ~22.5% GAAP and ~18.0% non-GAAP tax rate, this case settles at 20% because the company states the 2025 U.S. Tax Act's restoration of immediate domestic R&D expensing will reduce effective cash tax rates for fiscal 2026 and beyond, pulling the sustainable cash rate below the GAAP figure.
Why this confidence: Both the GAAP and non-GAAP rate assumptions are disclosed by the company itself ↑, Adobe explicitly flags the direction of change from the 2025 Tax Act ↑, Blending GAAP and cash rates into one sustainable figure involves judgment ↓
Evidence for
- Adobe discloses that the 2025 U.S. Tax Act restores immediate expensing of domestic R&D costs, with an anticipated reduction to effective cash tax rates for fiscal 2026 and beyond.[Adobe Q2 FY2026 Form 10-Q summary]· primary
- Adobe's guidance assumptions bracket the rate at approximately 22.5% GAAP and 18.0% non-GAAP.[Adobe Q2 FY26 8-K exhibit]· primary
Evidence against
- The Tax Act's international provisions do not take effect for Adobe until fiscal 2027, so the near-term reported rate may remain closer to the 22.5% GAAP assumption.[Adobe Q2 FY2026 Form 10-Q summary]· primary
Reinvestment rate28.0%medium
How derived: Starting from Adobe's near-zero physical capital intensity — $37M of capex in a quarter with $6.4B of revenue and $5.12B of six-month operating cash flow — this case assumes about 28% of after-tax operating profit is reinvested, almost all of it in R&D headcount, AI compute, and periodic tuck-in acquisitions like the $1.9B Semrush deal rather than property and equipment.
Why this confidence: Capex and operating cash flow are disclosed, bounding the tangible portion tightly ↑, The intangible portion (R&D, AI compute, M&A) must be estimated rather than read off a statement ↓, Acquisition cadence over five years is unpredictable ↓
Evidence for
- Six-month FY26 operating cash flow was $5.12 billion, up 10%, against capital expenditures of only $37 million in the February quarter — an extremely asset-light model.[Adobe Q1/Q2 FY2026 Form 10-Q cash-flow summary]· primary
- The board authorized $25 billion of buybacks through April 2030, implying management expects reinvestment needs to consume well under half of generated cash.[Adobe 8-K, April 2026 repurchase authorization]· primary
Evidence against
- Adobe spent $1.9 billion in cash on Semrush in April 2026, showing that inorganic reinvestment can be lumpy and large relative to a single year's profit.[Adobe Completes Semrush Acquisition]· primary
Terminal growth2.5%medium
How derived: Starting from a $27.10B recurring-revenue base that is still compounding at roughly 10% but on an increasingly large denominator, this case assumes long-run growth settles at 2.5% — a mature software franchise growing with nominal GDP, and well below the 4.7% ten-year Treasury yield as a terminal-value discipline.
Why this confidence: Held below the observable 10-year Treasury yield, a hard economic bound ↑, Perpetual-growth estimates are unverifiable by nature ↓
Evidence for
- Ending ARR of $27.10 billion on a subscription model with $22.27 billion of remaining performance obligations indicates a durable, renewing revenue base capable of at least inflation-level perpetual growth.[Adobe Reports Record Q2 Results]· primary
Evidence against
- Deferral of Creative Cloud price increases and a shift toward freemium acquisition suggest per-user monetization may not keep pace with inflation indefinitely.[Adobe (ADBE) Q2 2026 Earnings Call Transcript]· primary
Bull
low confidence$462.47
IV / share
+75.2% vs $264.02
- Explicit cash flows
- $87.28
- Terminal value
- $361.57
- Net cash
- $13.62
- Intrinsic value / share
- $462.47
78.2% of the value rests on the terminal value — high dependency. A small change to terminal growth moves the valuation a lot — see terminal growth below.
bull revenue growth (avg 11%) runs well above the trailing -8% trend
Revenue growth12.0% → 12.0% → 11.5% → 10.5% → 9.5%medium
How derived: Starting from Q2 FY26's 13% reported revenue growth and an AI-first ARR base that more than tripled year over year to over $500 million, this case assumes the freemium funnel and Firefly monetization convert at scale so that AI products add several points of growth on top of a ~10% core, holding low-double-digit growth for most of the forecast instead of decaying.
Why this confidence: AI-first ARR growth and GenStudio growth are company-disclosed figures ↑, Sustaining low-double-digit growth for five years runs counter to management's own organic ARR guidance cut ↓, The AI revenue base is small relative to total ARR, so extrapolation is fragile ↓
Evidence for
- AI-first ARR more than tripled year over year and surpassed $500 million, while Adobe GenStudio ARR grew over 25% year over year on enterprise demand.[Adobe (ADBE) Q2 2026 Earnings Call Transcript]· primary
- Q2 FY26 revenue grew 13% year over year to a record $6.62 billion, an acceleration from the ~10.5% posted in each of FY23, FY24 and FY25.[Adobe Reports Record Q2 Results]· primary
- The Semrush acquisition, closed April 28, 2026, adds brand-visibility and AI-search-optimization capability to the enterprise Digital Experience offering, expanding the addressable market.[Adobe Completes Semrush Acquisition]· primary
Evidence against
- Management cut its organic second-half ARR growth expectation by roughly two points, and about half of that stems from deferring Creative Cloud price increases — a direct headwind to the growth reacceleration assumed here.[Adobe (ADBE) Q2 2026 Earnings Call Transcript]· primary
- AI-first ARR of just over $500 million is under 2% of Adobe's $27.10 billion total ARR, so it must compound for years before it can move the consolidated growth rate.[Adobe Reports Record Q2 Results]· primary
Operating margin40.0%medium
How derived: Starting from Adobe's reaffirmed ~45% non-GAAP FY26 operating margin target and reported GAAP quarterly margins that have already touched 37.9%, this case assumes the gap between GAAP and non-GAAP narrows as stock compensation grows slower than revenue and AI is delivered on largely fixed model-development cost, lifting the sustainable reported margin to 40%.
Why this confidence: Company's reaffirmed non-GAAP target sets a credible upper bound above this figure ↑, 40% exceeds every reported GAAP quarterly margin in the historical actuals ↓, The rate at which the GAAP/non-GAAP gap narrows is an estimate, not disclosed ↓
Evidence for
- Adobe reaffirmed an approximately 45.0% non-GAAP operating margin target for FY26 while raising revenue and EPS guidance.[Adobe Q2 FY26 8-K exhibit]· primary
- Reported GAAP operating margin reached 37.9% in Q1 FY25 and 37.8% in Q1 FY26, demonstrating the model can already deliver high-thirties profitability.[Adobe Reports Record Q2 Results]· primary
Evidence against
- Q2 FY26 GAAP operating margin fell to 33.8% and included a non-cash goodwill impairment, and Adobe has never sustained a 40% reported operating margin in the periods shown.[Adobe Reports Record Q2 Results]· primary
- The freemium acquisition strategy adds serving and marketing cost ahead of monetization, working against near-term margin expansion.[Adobe (ADBE) Q2 2026 Earnings Call Transcript]· primary
Tax rate18.5%medium
How derived: Starting from Adobe's own ~18.0% non-GAAP tax rate assumption, this case sits just above it at 18.5% because the company states the 2025 U.S. Tax Act's immediate domestic R&D expensing will reduce cash tax rates for fiscal 2026 and beyond, and a higher-growth foreign-derived intangible income mix would keep the sustainable cash rate near the non-GAAP level.
Why this confidence: Anchored directly to the company's disclosed non-GAAP tax assumption ↑, Sits four points below the company's own GAAP assumption, so it requires the cash-tax benefit to persist for five years ↓, International tax provisions change for Adobe in fiscal 2027 with undisclosed net effect ↓
Evidence for
- Adobe's Q2 FY26 target assumptions specify a non-GAAP tax rate of approximately 18.0%.[Adobe Q2 FY26 8-K exhibit]· primary
- Adobe anticipates the 2025 U.S. Tax Act will reduce effective rates for cash taxes paid for fiscal 2026 and beyond.[Adobe Q2 FY2026 Form 10-Q summary]· primary
Evidence against
- Adobe's own GAAP tax-rate assumption for the same period is approximately 22.5%, four points above the level used here.[Adobe Q2 FY26 8-K exhibit]· primary
Reinvestment rate22.0%low
How derived: Starting from $37 million of quarterly capital spending against $5.12 billion of six-month operating cash flow, this case assumes an unusually low 22% reinvestment rate because AI model development is a largely fixed cost that scales across an 850-million-user funnel and because the board's $25 billion buyback authorization signals management sees growth needs consuming only a modest share of cash.
Why this confidence: Disclosed capex is unambiguous and extremely low ↑, Pairing the highest growth path with the lowest reinvestment rate requires an unusually high return on new capital ↓, AI compute spending and future M&A are not separately disclosed and must be estimated ↓
Evidence for
- Capital expenditures were $37 million in the quarter ended February 27, 2026, against roughly $6.4 billion of quarterly revenue — under one percent of sales.[Adobe Q1 FY2026 Form 10-Q summary]· primary
- Adobe's board authorized up to $25 billion of share repurchases through April 30, 2030, implying substantial surplus cash beyond reinvestment requirements.[Adobe 8-K, April 2026 repurchase authorization]· primary
Evidence against
- Adobe deployed $1.9 billion of cash for Semrush in a single transaction, and this case's higher growth path would plausibly require continued acquisition spending above the assumed rate.[Adobe Completes Semrush Acquisition]· primary
Terminal growth3.0%medium
How derived: Starting from a $27.10 billion recurring-revenue base that is still growing about 10% with AI-first ARR tripling off a small base, this case assumes Adobe ends the forecast as a franchise growing slightly faster than the economy at 3.0%, still comfortably below the 4.7% ten-year Treasury yield.
Why this confidence: Remains below the observable 10-year Treasury yield, preserving terminal-value discipline ↑, Assuming above-GDP growth in perpetuity for a company facing AI disruption is a strong claim ↓
Evidence for
- AI-first ARR more than tripled year over year to over $500 million, evidence of a new product category that can extend the growth runway past the forecast horizon.[Adobe (ADBE) Q2 2026 Earnings Call Transcript]· primary
Evidence against
- Adobe's decision to defer Creative Cloud price increases removes the pricing escalator that would most directly support above-GDP perpetual growth.[Adobe (ADBE) Q2 2026 Earnings Call Transcript]· primary
Valuation robustness
reliability of the estimate, not a stock rating59 / 100 · Moderate
Formula v1.0.0. Higher means a more reliable estimate — not a recommendation.
Quality checks
Automated model-risk flags — warnings, not recommendations.
- 75% of the intrinsic value rests on the terminal value — a small change to terminal growth moves the valuation a lot.→ terminal growth
Per-share economics
Business growth after changes in the diluted share count.
| Period | Revenue growth | FCF/share | FCF/share growth | Shares | Share growth |
|---|---|---|---|---|---|
| Q3 2024 | 10.6% | 4.39 | 13.1% | 447.6M | -2.6% |
| Q1 2025 | 10.3% | 5.61 | 125.2% | 437.6M | -4.1% |
| Q2 2025 | 10.6% | 5 | 18.8% | 428.9M | -5.0% |
| Q3 2025 | 10.7% | 5.01 | 14.2% | 424.1M | -5.3% |
| Q1 2026 | 12.0% | 7.11 | 26.7% | 410.8M | -6.1% |
| Q2 2026 | 12.7% | 5.23 | 4.7% | 402.5M | -6.2% |
Valuation history every run
History builds as the valuation is recalculated — this is the first recorded run.
Market inputs researched
Started from the Federal Reserve's H.15 daily release of the 10-year Treasury constant-maturity yield at 4.70% on August 14, 2026, and used it directly as the nominal risk-free rate because the forecast cash flows are nominal USD over a comparable horizon.
Started from the reported ADBE beta coefficient of 0.83 measured against the overall market, and used it unadjusted because Adobe's subscription revenue model and net-cash-light balance sheet give it lower systematic sensitivity than the average large-cap technology issuer.
Started from Aswath Damodaran's implied U.S. equity risk premium of 4.23% over the Treasury bond rate computed at the start of 2026, and used it as the forward-looking market premium because an implied premium is consistent with valuing cash flows at current index prices rather than a historical average.
Started from Adobe's most recent published closing price of $264.02 on August 14, 2026, which against 402.5 million diluted shares implies a market capitalization of roughly $106 billion, and used it directly as the market benchmark for the per-share valuation.
Started from the ICE BofA Single-A US Corporate Index effective yield of 5.26% and applied it to Adobe because its $6.15 billion of senior notes maturing 2027–2035 carry single-A-category credit quality, making the index a better forward marginal borrowing cost than Adobe's legacy coupons of 2.26%–5.40%.
Generated 8/16/2026, 11:54:02 AM · pipeline v1.1.0