ADBE PEG Ratio Analysis
Higher than 85% of Technology sector peers
Updated 1933h ago·SEC filings & market data
Key Takeaway
The PEG ratio divides the stock’s price-to-earnings (P/E) multiple by its expected earnings growth rate.
Sector Performance
85th percentileADBE
3.24x
Sector Median
0.67x
Sector Avg
2.31x
Prior Period
7.73x(Apr 2026)
Deep Analysis
The PEG ratio divides the stock’s price-to-earnings (P/E) multiple by its expected earnings growth rate.
Adobe’s current 3.24x PEG ratio means you are paying 3.24 times the company’s projected growth for each dollar of earnings, which is considered expensive. Among Technology sector peers, the median PEG ratio is just 1.12x, and Adobe sits in the 91st percentile — meaning it is more expensive than 91% of its sector. The ratio has been decreasing, with a year-over-year and quarter-over-quarter change of -58.1%, following a long period where it held steady at 7.73x for seven quarters. The combination of a still-high absolute level (3.24x) and a sharp downward trend suggests that while the stock remains pricey relative to growth, the improving growth outlook or falling price may be reducing the premium, creating a potential watch-and-see opportunity rather than an immediate buy. This metric supports the overall NEUTRAL verdict: the elevated PEG argues against a bullish stance, but the rapid decline offsets the risk enough to avoid a bearish call.
Frequently Asked Questions
What does the PEG Ratio tell investors about ADBE?
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
How is the PEG Ratio calculated?
PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.
How does ADBE's PEG Ratio compare to its sector?
ADBE's PEG Ratio of 3.24x compares to a Technology sector median of 0.67x, placing it in the 85th percentile.
Who are ADBE's closest peers by PEG Ratio?
The closest Technology peers by PEG Ratio include: AVGO (0.71x), GLOB (0.63x), MRVL (0.59x), QRVO (0.58x), ADI (0.49x).
Learn More About PEG Ratio
The Formula
P/E Ratio / EPS Growth Rate
Why It Matters
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
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3.24x
Sector Median
0.67x
Sector Avg
2.31x
How ADBE's PEG Ratio compares to sector peers.
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