ADBENEUTRAL

ADBE PEG Ratio Analysis

3.24x

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 percentile

ADBE

3.24x

Sector Median

0.67x

Sector Avg

2.31x

Prior Period

7.73x(Apr 2026)

↑ Improving
📊

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).

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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ADBE

3.24x

Sector Median

0.67x

Sector Avg

2.31x

How ADBE's PEG Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.