Stock fact sheet · data as of
Adobe Inc. (ADBE): fair value, margin of safety and Wheel Score
Ticker symbol ADBE · Technology · Software - Application · United States · Blend Quality
Is ADBE undervalued?
Adobe Inc. (ADBE) closed at 248.48 on 5 Nov 2026. The GLS average fair value - the simple average of the 8 valuation models that produced a positive number - is 361.15, which puts the price 31% below it. 4 of the 8 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.
The 8 models disagree widely: Graham Number gives 111.16 while Payback Time gives 680.01. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
Ranked against every other company we cover, neither cheapness nor growth clearly wins for ADBE, so the nightly engine files it under Blend (value score 41, growth score 54, out of 100). It also carries the Quality tag (Quality = moat 7.5+ out of 10 and Piotroski 7+).
Nine valuation models for ADBE
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 352.15 | +42% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 111.16 | -55% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 485.82 | +96% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 170.06 | -32% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 244.43 | -2% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 640.67 | +158% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 680.01 | +174% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 204.89 | -18% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -19.81 | -108% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 260.61 | +5% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health ADBE scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 9.5 out of 10 - high returns on capital, steady margins and growth that held up through bad years point to a durable business.
Returns on capital are high - ROIC 39.0%, ROE 61.3%, ROA 24.2% - with debt at 0.57 times equity and a free-cash-flow yield of 11.0%.
Adobe Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Digital Media 75%, Digital Experience 25%, Print And Publishing 1% (quarter Q4 FY2025).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 4/10 on the GLS smart-money scales; the last recorded Congressional buy was on 10 Aug 2026.
| Piotroski F-score | 7 / 9 | ROIC | 39.0% |
|---|---|---|---|
| GLS Moat | 9.5 / 10 | ROE | 61.3% |
| Debt / equity | 0.57 | ROA | 24.2% |
| Free-cash-flow yield | 11.0% | Payout ratio | 0% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 4 / 10 |
Wheel Score 95: Prime
ADBE scores 95 out of 100 on the Wheel Score, in the Prime band (85 and above): it passes all 9 Wheel Trade Filters and ranks strongly on value strong, premium strong, moat strong, health good, red flags strong, option trading strong, stability strong. Prime stocks stand out among those that pass - the Sunday Scan is the top 10 by Wheel Score.
Implied volatility is 48% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. The option chain is deep: 225,663 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 4.4M shares a day on a market cap of $96.7B, with a beta of 1.38 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score rates that strong.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 31% below fair value | |
| Premium | Strong | implied volatility 48% | |
| Moat | Strong | moat 9.5/10 | |
| Health | Good | Piotroski 7/9 | |
| Red Flags | Strong | Red Flags score 95/100 | |
| Option trading | Strong | 14,902 contracts a day, 225,663 open interest | |
| Stability | Strong | beta 1.38, $96.7B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 9 Dec 2026 (after the close), 34 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Analysts downgraded ADBE 2 times in the last 30 days with no upgrades; the latest action was a downgrade by HSBC on 13 Oct 2026.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Software - Application
The 12 companies below are the closest to Adobe Inc. by market cap within the Software - Application industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| INTU Intuit Inc. | 356.64 | 406.72 | +12% | 85Prime | $95.3B |
| APP AppLovin Corporation | 271.75 | 385.84 | +30% | 44Weak | $91.3B |
| SNOW Snowflake Inc. | 290.60 | 70.56 | -312% | 35Weak | $102.5B |
| CDNS Cadence Design Systems, Inc. | 329.52 | 111.33 | -196% | 45Weak | $90.4B |
| NOW ServiceNow, Inc. | 108.81 | 71.15 | -53% | 44Weak | $112.9B |
| ADP Automatic Data Processing, Inc. | 303.54 | 211.37 | -44% | 43Weak | $119.8B |
| DDOG Datadog, Inc. | 188.72 | 33.55 | -462% | 41Weak | $67.8B |
| UBER Uber Technologies, Inc. | 69.87 | 82.94 | +16% | 81Good | $142.7B |
| MSTR Strategy Inc | 142.54 | - | - | 28Weak | $57.4B |
| ADSK Autodesk, Inc. | 270.09 | 213.31 | -27% | 47Weak | $56.4B |
| VEEV Veeva Systems Inc. | 310.63 | 179.19 | -73% | 44Weak | $50.3B |
| CRM Salesforce, Inc. | 227.11 | 317.89 | +29% | 88Prime | $186.9B |
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about ADBE
Is ADBE undervalued right now?
By the GLS models, yes: at 248.48 the stock is 31% below the average fair value of 361.15 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of ADBE and what does it mean?
ADBE scores 95 out of 100 (Prime). The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for ADBE?
361.15 per share as of 5 Nov 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Adobe Inc. report earnings next?
The next earnings report is due on 9 Dec 2026 (after the close), 34 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does ADBE have listed options, and how liquid are they?
Yes. The nightly snapshot found 722 listed contracts with 225,663 open interest across all expiries and implied volatility of 48% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.