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Adobe (ADBE) Cyclically Adjusted Price-to-FCF

: 47.50 (As of Today)
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As of today (2024-04-17), Adobe's current share price is $474.57. Adobe's Cyclically Adjusted FCF per Share for the quarter that ended in Feb. 2024 was $9.99. Adobe's Cyclically Adjusted Price-to-FCF for today is 47.50.

The historical rank and industry rank for Adobe's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

ADBE' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 21   Med: 54.36   Max: 115.28
Current: 47.68

During the past years, Adobe's highest Cyclically Adjusted Price-to-FCF was 115.28. The lowest was 21.00. And the median was 54.36.

ADBE's Cyclically Adjusted Price-to-FCF is ranked worse than
63.65% of 663 companies
in the Software industry
Industry Median: 29.6 vs ADBE: 47.68

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 Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Adobe's adjusted free cash flow per share data for the three months ended in Feb. 2024 was $2.493. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is $9.99 for the trailing ten years ended in Feb. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Adobe Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Adobe's Cyclically Adjusted Price-to-FCF 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 Price-to-FCF
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 75.30 94.85 102.62 41.70 62.31

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 Price-to-FCF 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 37.50 45.87 58.63 62.31 56.09

Competitive Comparison

For the Software - Infrastructure subindustry, Adobe's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF 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 Price-to-FCF Distribution

For the Software industry and Technology sector, Adobe's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Adobe's Cyclically Adjusted Price-to-FCF falls into.



Adobe Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF 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 Price-to-FCF.

Adobe's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=474.57/9.99
=47.50

* 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 FCF per Share for the quarter that ended in Feb. 2024 is calculated as:

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

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Feb. 2024 (Change)*Current CPI (Feb. 2024)
=2.493/129.4194*129.4194
=2.493

Current CPI (Feb. 2024) = 129.4194.

Adobe Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201405 0.672 100.373 0.866
201408 0.421 100.352 0.543
201411 0.714 99.635 0.927
201502 0.291 99.032 0.380
201505 0.862 100.333 1.112
201508 0.616 100.548 0.793
201511 0.768 100.135 0.993
201602 0.893 100.040 1.155
201605 0.862 101.355 1.101
201608 0.919 101.617 1.170
201611 1.289 101.829 1.638
201702 1.397 102.779 1.759
201705 1.178 103.256 1.476
201708 1.299 103.587 1.623
201711 1.587 104.072 1.974
201802 1.791 105.052 2.206
201805 1.869 106.148 2.279
201808 1.795 106.383 2.184
201811 2.105 106.338 2.562
201902 1.919 106.649 2.329
201905 1.959 108.048 2.346
201908 1.697 108.245 2.029
201911 2.614 108.519 3.117
202002 2.523 109.139 2.992
202005 2.243 108.175 2.683
202008 2.701 109.662 3.188
202011 3.483 109.793 4.106
202102 3.547 110.968 4.137
202105 3.936 113.576 4.485
202108 2.721 115.421 3.051
202111 4.089 117.269 4.513
202202 3.514 119.703 3.799
202205 4.047 123.323 4.247
202208 3.367 124.958 3.487
202211 4.784 125.607 4.929
202302 3.461 126.928 3.529
202305 4.397 128.314 4.435
202308 3.882 129.538 3.878
202311 3.377 129.548 3.374
202402 2.493 129.419 2.493

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF 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 Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow 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 Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Adobe Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Adobe's Cyclically Adjusted Price-to-FCF 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 Price-to-FCF
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