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Adobe Systems Inc (NAS:ADBE)
Price-to-Free-Cash-Flow Ratio
33.09 (As of Today)

As of today, Adobe Systems Inc's share price is $74.45. Adobe Systems Inc's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Nov. 2014 was $2.25. Hence, Adobe Systems Inc's Price-to-Free-Cash-Flow Ratio for today is 33.09.

ADBE' s 10-Year Price-to-Free-Cash-Flow ratio Range
Min: 7.8   Max: 38.13
Current: 33.09

7.8
38.13

During the past 13 years, Adobe Systems Inc's highest Price-to-Free-Cash-Flow Ratio was 38.13. The lowest was 7.80. And the median was 19.85.

ADBE's Price-to-Free-Cash-Flow ratiois ranked higher than
78% of the 2271 Companies
in the Global Software - Application industry.

( Industry Median: 84.60 vs. ADBE: 33.09 )

Adobe Systems Inc's Free Cash Flow per Share for the three months ended in Nov. 2014 was $0.72. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in Nov. 2014 was $2.25.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of Adobe Systems Inc was 19.70% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was -5.40% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 1.10% per year. During the past 10 years, the average Free Cash Flow per Share Growth Rate was 4.70% per year.

During the past 13 years, Adobe Systems Inc's highest 3-Year average Free Cash Flow per Share Growth Rate was 42.50% per year. The lowest was -6.40% per year. And the median was 10.90% per year.


Definition

Adobe Systems Inc's Price-to-Free-Cash-Flow ratio for today is calculated as

Price-to-Free-Cash-Flow Ratio=Share Price/Free Cash Flow per Share (TTM)
=74.45/2.25
=33.09

Adobe Systems Inc's Share Price of today is $74.45.
Adobe Systems Inc's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Nov. 2014 was 0.44 (Feb. 2014 ) + 0.67 (May. 2014 ) + 0.42 (Aug. 2014 ) + 0.72 (Nov. 2014 ) = $2.25.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

It can also be calculated from the numbers for the whole company:

Price-to-Free-Cash-Flow Ratio=Market Cap/Free Cash Flow

Explanation

Free Cash Flow is considered more important than earnings by value investors. The reason is because, in principle, only the net cash that can be taken from the business belongs to shareholders. This Free Cash Flow can be used to grow the business, reduce debt or return to shareholders in dividends or share buybacks.

In a DCF Calculation Free Cash Flow is used to determine the intrinsic value of companies.


Be Aware

In real business, Free Cash Flow can be affected by the change in accounts receivable, accounts payable, management’s decision on expansion, etc. Therefore, investors should look at the Free Cash Flow over the longer term. Long-term average of Free Cash Flow is a more reliable indicator for real free cash flow.


Related Terms

Free Cash Flow, Free Cash Flow per Share, P/S Ratio, P/B Ratio, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Adobe Systems Inc Annual Data

Nov05Nov06Nov07Nov08Nov09Nov10Nov11Nov12Nov13Nov14
pfcf 23.1329.1019.2410.8718.4615.4410.3514.1330.2032.75

Adobe Systems Inc Quarterly Data

Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14
pfcf 12.4114.1316.1119.8721.5830.2038.1332.6034.7332.75
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