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Adobe (ADBE) Cyclically Adjusted Book per Share

: $25.28 (As of Feb. 2024)
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E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Book per Share and 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 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 $25.28 for the trailing ten years ended in Feb. 2024.

During the past 12 months, Adobe's average Cyclically Adjusted Book Growth Rate was 9.20% per year. During the past 3 years, the average Cyclically Adjusted Book Growth Rate was 13.60% per year. During the past 5 years, the average Cyclically Adjusted Book Growth Rate was 12.20% per year. During the past 10 years, the average Cyclically Adjusted Book Growth Rate was 9.90% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Cyclically Adjusted Book Growth Rate using Cyclically Adjusted Book per Share data.

During the past 13 years, the highest 3-Year average Cyclically Adjusted Book Growth Rate of Adobe was 28.50% per year. The lowest was 7.50% per year. And the median was 12.70% per year.

As of today (2024-04-17), Adobe's current stock price is $474.57. Adobe's Cyclically Adjusted Book per Share for the quarter that ended in Feb. 2024 was $25.28. Adobe's Cyclically Adjusted PB Ratio of today is 18.77.

During the past 13 years, the highest Cyclically Adjusted PB Ratio of Adobe was 36.13. The lowest was 4.86. And the median was 16.06.


Adobe Cyclically Adjusted Book per Share Historical Data

The historical data trend for Adobe's Cyclically Adjusted Book per Share 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 Annual Data
Trend Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23
Cyclically Adjusted Book per Share
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 15.64 16.96 19.78 22.59 24.88

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 Book per Share 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 Premium Member Only Premium Member Only Premium Member Only 23.16 23.78 24.42 24.88 25.28

Competitive Comparison

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 Cyclically Adjusted PB Ratio Distribution

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 Book per Share Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Book per Share and 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.

What is Cyclically Adjusted Book per Share? How do we calculate Cyclically Adjusted Book per Share?

Cyclically Adjusted Book per Share is the average of the inflation adjusted Book Value per Share of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the Cyclically Adjusted Book per Share of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the book value per share from 2001 through 2010.

We adjusted the 2001 book value per share data with the total inflation from 2001 through 2010 to the equivalent book value in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart's book value is $1 a share in 2001, then the 2001's equivalent book value in 2010 is $1.4 a share. If Wal-Mart's book value is $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 book value in 2010 is $1.35. So on and so forth, you get the equivalent book value per share of past 10 years. Then you add them together and divided the sum by the count to get 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.

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)
=34.128/129.4194*129.4194
=34.128

Current CPI (Feb. 2024) = 129.4194.

Adobe Quarterly Data

Book Value per Share CPI Adj_Book
201405 13.347 100.373 17.210
201408 13.500 100.352 17.410
201411 13.620 99.635 17.692
201502 13.177 99.032 17.220
201505 13.266 100.333 17.112
201508 13.718 100.548 17.657
201511 14.065 100.135 18.178
201602 14.143 100.040 18.297
201605 14.527 101.355 18.549
201608 14.643 101.617 18.649
201611 15.016 101.829 19.084
201702 15.327 102.779 19.300
201705 15.819 103.256 19.827
201708 16.577 103.587 20.711
201711 17.221 104.072 21.415
201802 17.518 105.052 21.581
201805 17.751 106.148 21.643
201808 18.122 106.383 22.046
201811 19.198 106.338 23.365
201902 20.208 106.649 24.523
201905 20.424 108.048 24.464
201908 21.123 108.245 25.255
201911 21.831 108.519 26.036
202002 21.667 109.139 25.693
202005 22.669 108.175 27.121
202008 24.402 109.662 28.798
202011 27.691 109.793 32.641
202102 28.280 110.968 32.982
202105 29.040 113.576 33.091
202108 30.282 115.421 33.955
202111 31.152 117.269 34.380
202202 29.184 119.703 31.553
202205 29.692 123.323 31.160
202208 30.781 124.958 31.880
202211 30.413 125.607 31.336
202302 30.950 126.928 31.558
202305 32.539 128.314 32.819
202308 34.596 129.538 34.564
202311 36.303 129.548 36.267
202402 34.128 129.419 34.128

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


Adobe  (NAS:ADBE) Cyclically Adjusted Book per Share Explanation

If a company grows much fast than inflation, Cyclically Adjusted Book per Share may underestimate the company's equity. Cyclically Adjusted PB Ratio can seem to be too high even the actual PB Ratio is low.

For the Cyclically Adjusted PB Ratio, the book value of the past 10 years are inflation-adjusted and averaged. The result is used for P/B calculation. Since it looks at the average over the last 10 years, the Cyclically Adjusted PB Ratio is also called CAPB Ratio.

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 Cyclically Adjusted PB Ratio of today is calculated as

Cyclically Adjusted PB Ratio=Share Price/Cyclically Adjusted Book per Share
=474.57/25.28
=18.77

* 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.

During the past 13 years, the highest Cyclically Adjusted PB Ratio of Adobe was 36.13. The lowest was 4.86. And the median was 16.06.


Be Aware

Cyclically Adjusted PB Ratio works better for cyclical companies. It gives you a better idea on the company's real book value.


Adobe Cyclically Adjusted Book per Share Related Terms

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


Adobe (ADBE) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Software » Adobe Inc (NAS:ADBE) » Definitions » Cyclically Adjusted Book per Share
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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