ADBENEUTRAL

ADBE P/E Ratio Analysis

13.9x

Higher than 18% of Technology sector peers

Updated 3033h ago·SEC filings & market data

Key Takeaway

The P/E ratio of 13.9x means that for every $1 of Adobe’s annual earnings, investors are currently paying $13.90 for the stock; it measures how much the market is willing to pay per dollar of profit.

Sector Performance

18th percentile

ADBE

13.9x

Sector Median

37.1x

Sector Avg

160.9x

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Deep Analysis

This is well below the Technology sector median of 38.3x, placing Adobe at the 18th percentile among its peers, indicating it trades at a lower valuation than most comparable companies. The metric has been completely stable over the last eight quarters, with a year-over-year change of +0.0% and a quarter-over-quarter change of +0.0%. A low P/E combined with a flat trend suggests limited immediate downside risk from valuation compression but also no upward catalyst from multiple expansion, implying a steady but unexciting risk profile. This neutral combination of a discounted valuation with no momentum aligns with the overall NEUTRAL verdict, as it neither signals extreme undervaluation nor overvaluation.

Frequently Asked Questions

What does the P/E Ratio tell investors about ADBE?

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

How is the P/E Ratio calculated?

P/E Ratio is calculated as: Price / EPS.

How does ADBE's P/E Ratio compare to its sector?

ADBE's P/E Ratio of 13.9x compares to a Technology sector median of 37.1x, placing it in the 18th percentile.

Who are ADBE's closest peers by P/E Ratio?

The closest Technology peers by P/E Ratio include: AAPL (37.1x), AMAT (36.9x), APH (37.6x), AKAM (37.6x), APP (38.8x).

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Learn More About P/E Ratio

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The Formula

Price / EPS

Why It Matters

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.