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GuruFocus has detected 5 Warning Signs with Adobe Systems Inc $ADBE.
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Adobe Systems Inc (NAS:ADBE)
PEG Ratio:
PE(NRI) Ratio / EBITDA 5-Y Growth
20.22 (As of Today)

PEG is defined as the P/E (NRI) Ratio divided by the growth ratio. The growth rate we use is the 5-year average EBITDA growth rate. As of today, Adobe Systems Inc's P/E (NRI) Ratio is 56.62. Adobe Systems Inc's 5-year average EBITDA growth rate is 2.80%. Therefore, Adobe Systems Inc's PEG for today is 20.22.

ADBE' s PEG Range Over the Past 10 Years
Min: 0.65   Max: 22.99
Current: 17.04

0.65
22.99

During the past 13 years, Adobe Systems Inc's highest PEG was 22.99. The lowest was 0.65. And the median was 2.20.

ADBE's PEG is ranked lower than
92% of the 561 Companies
in the Global Software - Application industry.

( Industry Median: 2.02 vs. ADBE: 17.04 )

Peter Lynch thinks a company with a P/E (NRI) ratio equal to its growth rate is fairly valued.


Definition

PEG is defined as the P/E (NRI) Ratio divided by the growth ratio. The ratio we use is the 5-year average EBITDA growth rate.

Adobe Systems Inc's PEG for today is calculated as

PEG=P/E (NRI) Ratio/EBITDA Growth Rate (5-year average)
=56.6173469388/2.80
=20.22

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG. PEG is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.


Related Terms

P/E (NRI) Ratio, Peter Lynch Fair Value


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Adobe Systems Inc Annual Data

Nov07Nov08Nov09Nov10Nov11Nov12Nov13Nov14Nov15Nov16
peg 1.770.794.002.271.723.700.000.000.000.00

Adobe Systems Inc Quarterly Data

Aug14Nov14Feb15May15Aug15Nov15Feb16May16Aug16Nov16
peg 0.000.000.000.000.000.000.000.000.000.00
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