ADBE — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($262.41)
DCF	$763.65	+191.0%
Graham Number	$102.80	-60.8%
Reverse DCF	—	implied g: -1.1%
DDM	—	—
EV/EBITDA	$262.41	+0.0%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $8.81B

Near-term growth (yrs 1–5)(%)Rev: 10.5% / EPS: 17.2%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 11.91%

Computed WACC: 11.91%

Cost of equity (Re)12.63%(Rf 4.30% + β 1.51 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)94.29%

Debt weight (D/V)5.71%

Results

Intrinsic Value / share$500.24

Current Price$262.41

Upside / Downside+90.6%

Net Debt (used)$59.00M

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	9.2%	13.2%	17.2%	21.2%	25.2%
7.0%	$820.73	$973.37	$1148.52	$1348.60	$1576.23
8.0%	$660.35	$781.56	$920.51	$1079.13	$1259.46
9.0%	$549.94	$649.55	$763.65	$893.79	$1041.64
10.0%	$469.46	$553.37	$649.40	$758.85	$883.10
11.0%	$408.31	$480.33	$562.68	$656.45	$762.83

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $16.69

Book Value / share($)Yahoo: $28.14

Results

Graham Number$102.80

Current Price$262.41

Margin of Safety-60.8%

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 11.91%

Terminal growth rate(%)

Computed WACC: 11.91%

Cost of equity (Re)12.63%(Rf 4.30% + β 1.51 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)94.29%

Debt weight (D/V)5.71%

Results

Current Price$262.41

Implied Near-term FCF Growth5.3%

Historical Revenue Growth10.5%

Historical Earnings Growth17.2%

Base FCF (TTM)$8.81B

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: —

Dividend growth rate (g)(%)

Required return (r)(%)

Results

This company does not pay a dividend. DDM is not applicable — the intrinsic value shown uses D0 = $0 unless you enter a hypothetical dividend above.

DDM Intrinsic Value / share—

Current Price$262.41

Upside / Downside—

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $9.24B

Target EV/EBITDA multipleCurrent: 11.7×

Net Debt($B)Default: $59.00M

Results

Implied Equity Value / share$262.41

Current Price$262.41

Upside / Downside+0.0%

Implied EV$107.78B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	-$1.94B	-$941.00M	$59.00M	$1.06B	$2.06B
7.7x	$177.23	$174.79	$172.36	$169.92	$167.49
9.7x	$222.26	$219.82	$217.39	$214.95	$212.51
11.7x	$267.29	$264.85	$262.41	$259.98	$257.54
13.7x	$312.31	$309.88	$307.44	$305.01	$302.57
15.7x	$357.34	$354.91	$352.47	$350.03	$347.60

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