Is ADBE a Buy? ADBE Stock Analysis & Fair Value (2026)

Our model currently rates ADBE as a Buy.

Get the latest investment score, DCF valuation, and buy/sell/hold insights for ADBE (ADBE).

Last Analyzed: 13/01/2026

Stock Analysis & Score Explanation

ADBE (ADBE)
$309.30
Fundament Score Analysis
67.75/100
Fair Value Analysis
Current Price
$309.30
Fair Value
$369.18
Undervalued by 19.4%
Buy recommendation based on:
  • Fundament Score Analysis
  • Fair Value Analysis
  • Industry Trend
Confidence Level: /10

Fair Value Analysis

Weighted Fair Value

$369.18

Based on Multiple Valuation Methods (Weighted Average)

Current Price

$309.30

Undervalued by 19.36%

Individual Valuation Methods:

Available
$372.30
Available
$150.52
Available
$584.72
Invalid fair value calculation result
N/A

DCF Model Assumptions:

Growth Rate: 13.17%
Discount Rate: 8.6%
Terminal Growth: 4.5%
Projection: 5 years

Stock Analysis & Score Explanation

This stock receives a score of 67.75/100 with a Hold recommendation. Financial health scored 43.81/55, competitive position 14.75/25, macro risk assessment 8.34/10, and risk-adjusted returns 0.85/10. The analysis considers current market conditions and fundamental metrics. This score reflects the financial health, growth potential, and overall valuation of the stock, helping investors determine whether it may be overvalued or undervalued. Learn more about the AInvestor Score and how it is calculated. See how we convert scores and fair-value signals into actionable labels in the AInvestor Recommendation glossary entry.

Undervalued by 19.36%. Our detailed stock valuation analysis indicates that undervalued at current market prices by 19.36%. The weighted fair value of $369.18 is calculated using multiple proven valuation methods, including Discounted Cash Flow (DCF), Peter Lynch Fair Value, Trading Multiples P/E, and Earnings Power Value (EPV). This comprehensive stock analysis is designed to guide informed investment decisions.

Industry Context: Technology

Secular Growth
📈 Positive

2026 Trend: 📈 Positive Outlook

Positive outlook supported by AI/ML platform investments, cloud becoming mission-critical with recurring revenue models, and software consolidation benefits. Massive unproven capex spend and AI ROI timing risks create valuation uncertainties.

Bubble Watch: AI ROI Gap

Massive capital spend on AI infrastructure with delayed or uncertain ROI realization. Peak enthusiasm may lead to overcapacity and margin compression as returns underwhelm expectations.

Key 2026 Outlook Points

  • On-device AI reduces cloud infrastructure capex requirements
  • AI ROI measurements improve: focus on actual business impact metrics
  • Sovereign AI initiatives boost semiconductor demand and pricing
  • Enterprise AI automation drives efficiency gains and headcount reduction