ValuentumAd

Official PayPal Seal

Adobe Acrobat Pro Prices Up 33%; Price Tag of Figma Deal Remains Overhang on Shares

publication date: Jan 4, 2023
View a Printer Friendly version of this page, allowing you to print the page. Send a summary of this page to someone via email.
A picture containing text Description automatically generated
Image: Adobe's long-term market opportunity is huge. Image Source: Adobe. 

Adobe recently announced a rather large acquisition of rival Figma, and while the price tag is rather steep, we think the deal makes sense strategically. Price increases across Adobe’s suite of products have been impressive, and we estimate the latest price increase at Acrobat Pro to be ~33%, which is a huge year-over-year delta. Given the high switching costs, we think many consumers will have to eat the price increase. Adobe’s shares trade at a lofty earnings multiple, but it remains one of the best-positioned software stocks in this tumultuous economic environment. A growing recurring (subscription) book of business, considerable operating cash flow growth, and a strong capital structure with investment-grade credit ratings are a few things we like most about Adobe. The high end of our fair value estimate range of Adobe stands at $394 per share.


Subscribe Now to Gain Access!

This page is available to subscribers only. To gain access to members only content (including this research piece), click here to subscribe. With a subscription, you'll have access to all of our premium commentary, equity reports, dividend reports and Best Ideas Newsletter and Dividend Growth Newsletter, as well as receive discounts on all of our modeling tools and products. Financial advisers and institutional investors have even more to choose from!

Click to Learn More about Valuentum

If you are already a subscriber, please login.

If you believe you should be able to view this area then please contact us and we will try to rectify this issue as soon as possible.


To gain access to the members only content, click here to subscribe. You will be given immediate access to premium content on the site.