DCF Tool

ADBE

Adobe Inc – Software Publishers
Adobe is changing the world through digital experiences.
Analysis Results
Intrinsic Value $518.70
Latest Price $408.60
Relative Value 21% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 40.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 11.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 40.9%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 8.22 7.38
2023 11.6 9.33
2024 16.3 11.8
2025 23.0 14.9
2026 32.5 18.9
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 350 billion. This corresponds to a present value of 183 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 62.3 billion. Adding in the terminal value gives a total present value of 245 billion.

There are presently 472.0 million outstanding shares, so the intrinsic value per share is 518.7.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 17,338,000,000
Current Cash 11,596,000,000
Current Liabilities 13,864,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -8,122,000,000
Change in NCWC -4,764,000,000
EBIT 11,604,000,000
Tax Provision 1,766,000,000
Depreciation and Amortization 1,576,000,000
Capital Expenditure -780,000,000
Unlevered Free Cash Flow 5,839,973,356
Current Assets 8,146,000,000
Current Cash 5,992,000,000
Current Liabilities 5,512,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -3,358,000,000
Change in NCWC -634,562,000
EBIT 4,237,000,000
Tax Provision -1,084,000,000
Depreciation and Amortization 757,000,000
Capital Expenditure -419,000,000
Unlevered Free Cash Flow 3,940,438,000
Current Assets 6,494,925,000
Current Cash 4,176,976,000
Current Liabilities 8,190,938,000
Current Debt 3,149,551,000
Non-Cash Working Capital (NCWC) -2,723,438,000
Change in NCWC -50,389,000
EBIT 3,268,121,000
Tax Provision 253,283,000
Depreciation and Amortization 736,669,000
Capital Expenditure -394,479,000
Unlevered Free Cash Flow 3,301,629,834
Current Assets 4,857,039,000
Current Cash 3,228,962,000
Current Liabilities 4,301,126,000
Current Debt 0
Non-Cash Working Capital (NCWC) -2,673,049,000
Change in NCWC -573,631,000
EBIT 2,840,369,000
Tax Provision 203,102,000
Depreciation and Amortization 346,492,000
Capital Expenditure -266,579,000
Unlevered Free Cash Flow 2,140,169,171
Current Assets 7,247,813,000
Current Cash 5,819,774,000
Current Liabilities 3,527,457,000
Current Debt 0
Non-Cash Working Capital (NCWC) -2,099,418,000
Change in NCWC -366,257,000
EBIT 2,168,095,000
Tax Provision 443,687,000
Depreciation and Amortization 325,997,000
Capital Expenditure -178,122,000
Unlevered Free Cash Flow 1,499,704,992
Current Assets 5,839,774,000
Current Cash 4,761,300,000
Current Liabilities 2,811,635,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,733,161,000
Change in NCWC -353,413,000
EBIT 1,492,094,000
Tax Provision 266,356,000
Depreciation and Amortization 331,535,000
Capital Expenditure -203,805,000
Unlevered Free Cash Flow 989,484,189
Current Assets 4,821,892,000
Current Cash 3,988,084,000
Current Liabilities 2,213,556,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,379,748,000
Change in NCWC -351,379,000
EBIT 904,654,000
Tax Provision 244,230,000
Depreciation and Amortization 339,473,000
Capital Expenditure -184,936,000
Unlevered Free Cash Flow 454,952,706
Current Assets 4,602,328,000
Current Cash 3,739,491,000
Current Liabilities 2,494,435,000
Current Debt 603,229,000
Non-Cash Working Capital (NCWC) -1,028,369,000
Change in NCWC -389,574,000
EBIT 432,568,000
Tax Provision 92,981,000
Depreciation and Amortization 313,590,000
Capital Expenditure -148,332,000
Unlevered Free Cash Flow 96,953,504
Current Assets 4,045,929,000
Current Cash 3,173,752,000
Current Liabilities 1,525,648,000
Current Debt 14,676,000
Non-Cash Working Capital (NCWC) -638,795,000
Change in NCWC -171,267,000
EBIT 449,220,000
Tax Provision 66,156,000
Depreciation and Amortization 321,227,000
Capital Expenditure -188,358,000
Unlevered Free Cash Flow 327,375,841
Current Assets 4,331,360,000
Current Cash 3,538,353,000
Current Liabilities 1,271,752,000
Current Debt 11,217,000
Non-Cash Working Capital (NCWC) -467,528,000
Change in NCWC -85,720,000
EBIT 1,177,274,000
Tax Provision 286,019,000
Depreciation and Amortization 299,766,000
Capital Expenditure -271,076,000
Unlevered Free Cash Flow 819,274,623

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