ADBENEUTRAL

ADBE EV/EBITDA Analysis

14.1x

Higher than 29% of Technology sector peers

Updated 3033h ago·SEC filings & market data

Key Takeaway

Adobe’s current EV/EBITDA of 14.1x means that for every dollar of its earnings before interest, taxes, depreciation, and amortization (EBITDA), the enterprise value (market cap plus debt minus cash) is 14.1 times that amount — a measure of how cheap or expensive the stock is relative to its operating earnings.

Sector Performance

29th percentile

ADBE

14.1x

Sector Median

19.1x

Sector Avg

44.5x

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Deep Analysis

This is well below the sector median of 24.2x, placing Adobe in the 33rd percentile among its technology peers, meaning it is cheaper than two-thirds of them. Trend data is not available: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and there are no historical values beyond the current 14.1x. Without any trend direction, the combination of a low valuation relative to the sector with no recent movement implies a potential opportunity if the multiple stays suppressed, but it carries the risk that no improving earnings or sentiment are yet visible to drive re-rating. This metric supports the overall NEUTRAL verdict because the low EV/EBITDA suggests a discount, yet the absence of trend data prevents concluding that the discount is narrowing or that the stock is undervalued on a forward basis.

Frequently Asked Questions

What does the EV/EBITDA tell investors about ADBE?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

How does ADBE's EV/EBITDA compare to its sector?

ADBE's EV/EBITDA of 14.1x compares to a Technology sector median of 19.1x, placing it in the 29th percentile.

Who are ADBE's closest peers by EV/EBITDA?

The closest Technology peers by EV/EBITDA include: AMAT (19.3x), MSFT (18.9x), CRM (18.5x), ADI (24.2x), APH (24.5x).

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Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.