ABCDEFGHIJKLMNOPQRSTUVWXYZAAABACADAEAFAGAHAIAJAKALAMANAOAPAQARASATAUAVAWAXAYAZBABB
1
2
Model Introduction
3
1
4
Key Inputs1
5
Units ($ in millions)
6
Company nameAdobe Inc.
7
TickerADBE
8
Circuit breakerNo
9
Valuation date1/2/2024
10
Stub period91.7%
11
Latest shares of outstanding457,800,000
12
Md-year conventionNo
13
Fiscal year end12/1/2023
14
First fiscal year end12/2/2024
15
Date of latest 10K filing12/1/2023
16
Date of latest 10Q filing12/1/2023
17
18
WACC Information
19
After tax cost of debt1.84%
20
Cost of equity10.85%
21
Weighted average cost of capital
10.98%
22
23
Final year multiples
24
EV/EBITDA7.38 X
25
EV/EBIT9.32 X
26
EV/Sales3.67 X
27
28
Other assumptions
29
Effective tax rate of Adobe Inc. as of the latest filing
20.2%
30
Use growth or margins?
(Not used in this file)
Margins
31
32
33
Background and operations of Adobe Inc.:
34
Founded in 1982, Adobe is one of the largest and diversified software companies in the world. It offers products and
35
services used by creative professionals, including photographers, video editors, game developers and designers to name a few.
36
The company focuses its investments in two main categories, Digital Media and Digital Experience. Digital Media consists of
37
Adobe Creative and Document Cloud and provides products and services to help content creators to not only create, but also
38
to monetize, optimize, and enhance their art. Digital Experience part of the company mainly provides services and offerings
39
to businesses and organizations in order to help them improve and make their customers' experiences and journeys as smooth
40
and as frictionless as possible.
41
The company divides its revenue into three categories: Subscription, product, and services and other reveues. Subscription
42
revenue is further divided into three cateegories: digital media, digital experience, and publishing and advertising. Company
43
reported total revenues of $19.4B in FY '23, yielding an operating income of $6.6B and a NI of $5.4B.
44
45
46
47
Case Manager
48
49
Active CaseBase Case
50
51
52
Output:
53
Share price as of the valuation $ 573.15
54
Approach 2 $ 290.90
55
Analysis Overvalued
56
57
Additional notes:
58
These prices are based on my assumptions and what I think about the company. DCFs are extremely prone to
59
assumptions, and so my advice would be to put in what you think will happen and see what the value comes out to.
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100