Adobe (FRA:ADB) ROCE %: 51.24% (As of May. 2026)


FRA:ADB Adobe Inc FRA:ADB
86 GF Score
Price €173.90
GF Value €527.09
Valuation Significantly Undervalued
! 1 Warning Sign
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What is Adobe ROCE %?

Adobe FRA:ADB -0.64% 86 ROCE % is 51.24% as of May. 2026. GuruFocus rates FRA:ADB with a GF Score™ of 86/100 and a GF Value™ of €527.09 (Significantly Undervalued). The stock has 1 warning sign investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Adobe's annualized ROCE % for the quarter that ended in May. 2026 was 51.24%.

Adobe  (FRA:ADB) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Adobe ROCE % Related Terms

Adobe ROCE % Historical Data

* Premium members only.

The historical data trend for Adobe's ROCE % 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.

Adobe ROCE % Chart

Adobe Annual Data
Trend Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23 Nov24 Nov25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 30.27 32.93 33.12 34.78 44.15

Adobe Quarterly Data
Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25 May25 Aug25 Nov25 Feb26 May26
ROCE % 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 41.74 45.99 48.20 52.26 51.24
FRA:ADB
86GF Score
Adobe Inc FRA:ADB
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Adobe ROCE % Calculation

Adobe's annualized ROCE % for the fiscal year that ended in Nov. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Nov. 2025 )  (A: Nov. 2024 )(A: Nov. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Nov. 2025 )  (A: Nov. 2024 )(A: Nov. 2025 )
=7782.405/( ( (28476.66 - 9910.782) + (25514.04 - 8823) )/ 2 )
=7782.405/( (18565.878+16691.04)/ 2 )
=7782.405/17628.459
=44.15 %

Adobe's ROCE % of for the quarter that ended in May. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: May. 2026 )  (Q: Feb. 2026 )(Q: May. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: May. 2026 )  (Q: Feb. 2026 )(Q: May. 2026 )
=7885.472/( ( (25129.584 - 9635.94) + (25622.648 - 10338.768) )/ 2 )
=7885.472/( ( 15493.644 + 15283.88 )/ 2 )
=7885.472/15388.762
=51.24 %

(1) Note: The EBIT data used here is four times the quarterly (May. 2026) EBIT data.

* 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 51.24% mean?
Adobe (FRA:ADB) has a ROCE % of 51.24% as of May. 2026.
Is Adobe's ROCE % too high?
Adobe's current ROCE % is 51.24%. The Software industry median ROCE % is 5.27. Adobe's value of 51.24% is 872.3% above this industry median. Overall, Adobe has a GF Score™ of 86/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Adobe's ROCE % compare to CDNS and INTU?
Adobe's ROCE % of 51.24% can be compared against companies in the Software industry. The industry median ROCE % is 5.27. Adobe's value of 51.24% is 872.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Software company?
The median ROCE % among Software companies is 5.27, based on 2,711 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Adobe's current ROCE % of 51.24% is 872.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median ROCE % is 5.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Adobe's current ROCE % is 51.24%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Adobe stock overvalued right now?
Based on GuruFocus' analysis, Adobe (FRA:ADB) is currently considered Significantly Undervalued. The stock's GF Value™ is €527.09, compared to a current price of €173.90 — trading 67% below its estimated fair value. The current ROCE % is 51.24% and 872.3% above the Software industry median of 5.27. Adobe's overall GF Score™ is 86/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Adobe (FRA:ADB), the current ROCE % is 51.24% as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Adobe (FRA:ADB) Overvalued in 2026?

Based on GuruFocus' analysis, Adobe stock appears to be undervalued. The current stock price of €173.90 is trading 67% below its estimated GF Value™ of €527.09. GuruFocus considers Adobe to be Significantly Undervalued.

Key valuation signals for FRA:ADB:

  • ROCE %: 51.24%
  • GF Value™: €527.09 vs. price of €173.90 (67% below fair value)
  • GF Score™: 86/100 with 1 warning sign
  • Industry Position: 872.3% above the Software median

No single metric tells the full story. See the FRA:ADB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Adobe Business Description

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).
86GF Score

Get the complete analysis for FRA:ADB

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€173.90
Price
€527.09
GF Value