Adobe (ADBE) Demonstrates Strong Return on Capital

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May 03, 2025
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Key Takeaways:

  • Adobe (ADBE, Financial) showcases an impressive ROCE of 39%, well above the industry benchmark.
  • Analyst consensus projects a potential upside of nearly 31% for Adobe's stock within a year.
  • The estimated GF Value points to a substantial 66.45% increase from the current share price.

Adobe Inc. (ADBE) is making waves with a standout Return on Capital Employed (ROCE) of 39%, a performance that dwarfs the industry average of 9.7%. Over the past five years, Adobe has adeptly reinvested its capital, boosting its capital base by 30% and enhancing returns, which positions it as a compelling opportunity for investors.

Wall Street Analysts Forecast

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Wall Street analysts have provided one-year price targets for Adobe, suggesting an average target price of $498.86. This estimate indicates a considerable upside of 30.98% from Adobe's current stock price of $380.87, with forecasts ranging from a high of $660.00 to a low of $380.00. For more detailed predictions and data, visit the Adobe Inc (ADBE, Financial) Forecast page.

The average brokerage recommendation for Adobe Inc. (ADBE, Financial) currently stands at 2.0, signifying an "Outperform" status. This is based on insights from 41 brokerage firms, using a rating scale where 1 indicates a Strong Buy and 5 suggests Sell.

According to GuruFocus estimates, Adobe's estimated GF Value in a year is projected to be $633.97. This calculation suggests a potential upside of 66.45% from its present price of $380.87. The GF Value represents an assessment of the stock's fair trading value, derived from historical trading multiples, past business growth, and future performance estimates. For comprehensive insights, explore the Adobe Inc (ADBE, Financial) Summary page.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.