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Adobe (ADBE) Cyclically Adjusted PB Ratio : 18.60 (As of May. 26, 2024)


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What is Adobe Cyclically Adjusted PB Ratio?

As of today (2024-05-26), Adobe's current share price is $475.43. Adobe's Cyclically Adjusted Book per Share for the quarter that ended in Feb. 2024 was $25.56. Adobe's Cyclically Adjusted PB Ratio for today is 18.60.

The historical rank and industry rank for Adobe's Cyclically Adjusted PB Ratio or its related term are showing as below:

ADBE' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 4.86   Med: 16.35   Max: 36.13
Current: 18.6

During the past years, Adobe's highest Cyclically Adjusted PB Ratio was 36.13. The lowest was 4.86. And the median was 16.35.

ADBE's Cyclically Adjusted PB Ratio is ranked worse than
95.13% of 1355 companies
in the Software industry
Industry Median: 2.61 vs ADBE: 18.60

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

Adobe's adjusted book value per share data for the three months ended in Feb. 2024 was $34.128. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is $25.56 for the trailing ten years ended in Feb. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Adobe Cyclically Adjusted PB Ratio Historical Data

The historical data trend for Adobe's Cyclically Adjusted PB Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Adobe Cyclically Adjusted PB Ratio Chart

Adobe Annual Data
Trend Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 19.79 28.22 33.87 15.27 24.55

Adobe Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
Cyclically Adjusted PB Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.99 17.57 22.90 24.55 21.92

Competitive Comparison of Adobe's Cyclically Adjusted PB Ratio

For the Software - Infrastructure subindustry, Adobe's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Adobe's Cyclically Adjusted PB Ratio Distribution in the Software Industry

For the Software industry and Technology sector, Adobe's Cyclically Adjusted PB Ratio distribution charts can be found below:

* The bar in red indicates where Adobe's Cyclically Adjusted PB Ratio falls into.



Adobe Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.

Adobe's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=475.43/25.56
=18.60

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Adobe's Cyclically Adjusted Book per Share for the quarter that ended in Feb. 2024 is calculated as:

For example, Adobe's adjusted Book Value per Share data for the three months ended in Feb. 2024 was:

Adj_Book=Book Value per Share/CPI of Feb. 2024 (Change)*Current CPI (Feb. 2024)
=34.128/130.9299*130.9299
=34.128

Current CPI (Feb. 2024) = 130.9299.

Adobe Quarterly Data

Book Value per Share CPI Adj_Book
201405 13.347 100.373 17.410
201408 13.500 100.352 17.613
201411 13.620 99.635 17.898
201502 13.177 99.032 17.421
201505 13.266 100.333 17.312
201508 13.718 100.548 17.863
201511 14.065 100.135 18.391
201602 14.143 100.040 18.510
201605 14.527 101.355 18.766
201608 14.643 101.617 18.867
201611 15.016 101.829 19.307
201702 15.327 102.779 19.525
201705 15.819 103.256 20.059
201708 16.577 103.587 20.953
201711 17.221 104.072 21.665
201802 17.518 105.052 21.833
201805 17.751 106.148 21.895
201808 18.122 106.383 22.303
201811 19.198 106.338 23.638
201902 20.208 106.649 24.809
201905 20.424 108.048 24.749
201908 21.123 108.245 25.550
201911 21.831 108.519 26.339
202002 21.667 109.139 25.993
202005 22.669 108.175 27.437
202008 24.402 109.662 29.134
202011 27.691 109.793 33.022
202102 28.280 110.968 33.367
202105 29.040 113.576 33.477
202108 30.282 115.421 34.351
202111 31.152 117.269 34.781
202202 29.184 119.703 31.921
202205 29.692 123.323 31.524
202208 30.781 124.958 32.252
202211 30.413 125.607 31.702
202302 30.950 126.928 31.926
202305 32.539 128.314 33.202
202308 34.596 129.538 34.968
202311 36.303 129.548 36.690
202402 34.128 130.930 34.128

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Adobe  (NAS:ADBE) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.


Adobe Cyclically Adjusted PB Ratio Related Terms

Thank you for viewing the detailed overview of Adobe's Cyclically Adjusted PB Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Adobe (ADBE) Business Description

Industry
Address
345 Park Avenue, San Jose, CA, USA, 95110-2704
Adobe provides content creation, document management, and digital marketing and advertising software and services to creative professionals and marketers for creating, managing, delivering, measuring, optimizing and engaging with compelling content multiple operating systems, devices and media. The company operates with three segments: digital media content creation, digital experience for marketing solutions, and publishing for legacy products (less than 5% of revenue).
Executives
Mark S. Garfield officer: VP, CAO & Corp. Controller 345 PARK AVENUE, SAN JOSE CA 95110-2704
Amy Banse director 345 PARK AVENUE, SAN JOSE CA 95110
David Wadhwani officer: SVP & GM, Digital Media ADOBE INC., 345 PARK AVE, SAN JOSE CA 95110
Shantanu Narayen director, officer: President and CEO 345 PARK AVENUE, SAN JOSE CA 95110
Daniel Durn officer: EVP and CFO C/O APPLIED MATERIALS, INC., 3050 BOWERS AVENUE, P.O. BOX 58039, SANTA CLARA CA 95052-8039
Scott Belsky officer: EVP, Chief Product Officer 345 PARK AVENUE, SAN JOSE CA 95110
Cristiano R Amon director 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
John E Warnock director, other: Co-Chairman of the Board C/O ADOBE SYSTEMS INC, 345 PARK AVENUE P O BOX 2704, SAN JOSE CA 95110-2704
Dana Rao officer: EVP, Gen. Counsel & Secretary 345 PARK AVE, SAN JOSE CA 95110
Ann Lewnes officer: SVP, Chief Marketing Officer 345 PARK AVENUE, SAN JOSE CA 95110
David A Ricks director LILLY CORPORATE CENTER, INDIANAPOLIS IN 46285
M. Brett Biggs director 702 SW 8TH STREET, BENTONVILLE AR 72716
Laura Desmond director 345 PARK AVENUE, SAN JOSE CA 95110
Spencer Adam Neumann director SIERRA INCOME CORPORATION, 375 PARK AVE., SUITE 3304, NEW YORK NY 10152
Gloria Chen officer: EVP, Strategy & Growth 345 PARK AVENUE, SAN JOSE CA 95110

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