Image Source: PixabayAs part of an ongoing series, each week we typically conduct an analysis on one of the companies in our screens. This week, however, we will take a look at one of the stocks that is not currently in our screens: Adobe Inc.
Profile
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).
Recent Performance
Over the past 12 months, the share price has moved up by approximately 8.18%.
Source: Google Finance
Inputs
Forecasted Free Cash Flows (FCFs)
Terminal Value
Present Value of Terminal Value
Present Value of Free Cash Flows
Enterprise Value
Net Debt
Equity Value
Per-Share DCF Value
Conclusion
Based on the DCF valuation, the stock appears to be overvalued. The DCF value of the $582.61 share is lower than the recent market price of $586.55. The margin of safety is -0.68%.More By This Author:Comcast Corporation: Is It A Buy?Large-Cap Stocks In Trouble – Sunday, Sept. 8Verizon Communications Inc: Is It A Buy?
