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Adobe Inc (ADBE) is a leading software-infrastructure business with stocks listed in the US. It opened the day at US$508.08 after a previous close of US$512.34. During the day the price has varied from a low of USD504.06 to a high of USD512.77. The latest price was USD507.29 (25 minute delay). Adobe is listed on the NASDAQ. All prices are listed in US Dollars.
How to buy shares in Adobe
- Compare share trading platforms. To buy shares in a US company from Australia you'll need to find a trading platform that offers access to US stock markets. If you're just starting out, look for a platform with low brokerage and foreign exchange fees.
- Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
- Search for Adobe. Find the share by name or ticker symbol: ADBE. Research its history to confirm it's a solid investment against your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Adobe reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
- Decide on how many to buy. Weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of Adobe, depending on your broker.
- Check in on your investment. Congratulations, you own a part of Adobe. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.
What's in this guide?
- Adobe key stats
- Compare share trading platforms
- Is Adobe stock a buy or sell?
- Adobe performance over time
- Can I short Adobe shares?
- Is Adobe suitable for ethical investing?
- Are Adobe shares over-valued?
- Adobe's financials
- How volatile are Adobe shares?
- Does Adobe pay a dividend?
- Have Adobe shares ever split?
- Other common questions
Adobe share priceUse our graph to track the performance of ADBE stocks over time.
Adobe shares at a glance
|52-week range||US$332.57 - US$536.88|
|50-day moving average||US$471.0191|
|200-day moving average||US$478.142|
|Dividend yield||N/A (0%)|
|Earnings per share (TTM)||US$11.486|
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Is it a good time to buy Adobe stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Adobe price performance over time
|1 week (2021-04-15)||-3.05%|
|1 month (2021-03-19)||14.90%|
|3 months (2021-01-22)||7.38%|
|6 months (2020-10-23)||3.85%|
|1 year (2020-04-23)||51.26%|
|2 years (2019-04-23)||82.16%|
|3 years (2018-04-23)||125.16%|
|5 years (2016-04-22)||435.17%|
Is Adobe under- or over-valued?
Valuing Adobe stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Adobe's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Adobe's P/E ratio
Adobe's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 45x. In other words, Adobe shares trade at around 45x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
Adobe's PEG ratio
Adobe's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 2.6945. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Adobe's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Adobe's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$5.3 billion (£3.8 billion).
The EBITDA is a measure of a Adobe's overall financial performance and is widely used to measure a its profitability.
|Revenue TTM||US$13.7 billion|
|Operating margin TTM||34.75%|
|Gross profit TTM||US$11.1 billion|
|Return on assets TTM||12.86%|
|Return on equity TTM||46.36%|
|Market capitalisation||US$244.9 billion|
TTM: trailing 12 months
Shorting Adobe shares
There are currently 5.2 million Adobe shares held short by investors – that's known as Adobe's "short interest". This figure is 2.7% up from 5.1 million last month.
There are a few different ways that this level of interest in shorting Adobe shares can be evaluated.
Adobe's "short interest ratio" (SIR)
Adobe's "short interest ratio" (SIR) is the quantity of Adobe shares currently shorted divided by the average quantity of Adobe shares traded daily (recently around 3.3 million). Adobe's SIR currently stands at 1.58. In other words for every 100,000 Adobe shares traded daily on the market, roughly 1580 shares are currently held short.
However Adobe's short interest can also be evaluated against the total number of Adobe shares, or, against the total number of tradable Adobe shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Adobe's short interest could be expressed as 0.01% of the outstanding shares (for every 100,000 Adobe shares in existence, roughly 10 shares are currently held short) or 0.0109% of the tradable shares (for every 100,000 tradable Adobe shares, roughly 11 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Adobe.
Find out more about how you can short Adobe stock.
Adobe's environmental, social and governance track record
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Adobe.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Adobe's total ESG risk score
Total ESG risk: 14.32
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Adobe's overall score of 14.32 (as at 12/31/2018) is excellent – landing it in it in the 5th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Adobe is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Adobe's environmental score
Environmental score: 0.05/100
Adobe's environmental score of 0.05 puts it squarely in the 2nd percentile of companies rated in the same sector. This could suggest that Adobe is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Adobe's social score
Social score: 8.43/100
Adobe's social score of 8.43 puts it squarely in the 2nd percentile of companies rated in the same sector. This could suggest that Adobe is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Adobe's governance score
Governance score: 4.94/100
Adobe's governance score puts it squarely in the 2nd percentile of companies rated in the same sector. That could suggest that Adobe is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Adobe's controversy score
Controversy score: 1/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. Adobe scored a 1 out of 5 for controversy – the highest score possible, reflecting that Adobe has managed to keep its nose clean.
Environmental, social, and governance (ESG) summary
|Total ESG score||14.32|
|Total ESG percentile||4.86|
|Environmental score percentile||2|
|Social score percentile||2|
|Governance score percentile||2|
|Level of controversy||1|
Adobe share dividends
We're not expecting Adobe to pay a dividend over the next 12 months.
Have Adobe's shares ever split?
Adobe's shares were split on a 2:1 basis on 23 May 2005. So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your Adobe shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for Adobe shares which in turn could have impacted Adobe's share price.
Adobe share price volatility
Over the last 12 months, Adobe's shares have ranged in value from as little as US$332.57 up to US$536.88. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Adobe's is 0.9482. This would suggest that Adobe's shares are less volatile than average (for this exchange).
Adobe Inc. operates as a diversified software company worldwide. Its Digital Media segment provides tools and solutions that enable individuals, teams, and enterprises to create, publish, promote, and monetize their digital content. Its flagship product is Creative Cloud, a subscription service that allows customer to download and access the latest versions of its creative products. This segment serves content creators, experience designers, app developers, enthusiasts, students, social media users, and creative professionals; and marketing departments and agencies, companies, and publishers. The company's Digital Experience segment offers products, services, and solutions for creating, managing, executing, measuring, monetizing, and optimizing customer experiences from analytics to commerce. This segment serves marketers, advertisers, agencies, publishers, merchandisers, merchants, web analysts, data scientists, developers, marketing executives, information management and technology executives, product development executives, and sales and support executives. Its Publishing and Advertising segment offers products and services, such as e-learning solutions, technical document publishing, web conferencing, document and forms platform, web application development, and high-end printing, as well as publishing needs of technical and business, and original equipment manufacturers (OEMs) printing businesses. The company offers its products and services directly to enterprise customers through its sales force and local field offices, as well as to end users through app stores and through its website at adobe.com. It also distributes products and services through a network of distributors, value-added resellers, systems integrators, software vendors and developers, retailers, and OEMs. The company was formerly known as Adobe Systems Incorporated and changed its name to Adobe Inc. in October 2018. The company was founded in 1982 and is headquartered in San Jose, California.
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