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Is this Large Market Cap Stock target price reasonable for Adobe Systems Incorporated (NASDAQ:ADBE) ?

The company in question is, Adobe Systems Incorporated (NASDAQ:ADBE) currently with a stock price of 131.42 (0.92% today). The market cap for Adobe Systems Incorporated is 65013.47, and is in the sector Technology, and Application Software industry. The target price for Adobe Systems Incorporated is 143.13. Currently Adobe Systems Incorporated is trading with a P/E of 50.29, and a forward P/E of 26.37. Average volume for Adobe Systems Incorporated is 2328.11 and so far today it is 2004000.

Performance in the last year for Adobe Systems Incorporated has been 36.43%. For EPS growth, Adobe Systems Incorporated has seen a growth of 86.70%, and is looking to grow in the next year to 26.15%. More long term stats show that EPS growth has been 7.00% over the last five years and could be 16.11% for the next five years. Adobe Systems Incorporated has seen sales growth quarter over quarter at 21.60%, with EPS growth quarter over quarter at 58.20%. The 20-day simple moving average is 1.66%, with the 200-day simple moving average coming to 20.40%.

Since the IPO date for Adobe Systems Incorporated on the 8/14/1986, Adobe Systems Incorporated has seen performance year to date to be 27.65%. With Adobe Systems Incorporated trading at 131.42, the dividend yield is *TBA, and the EPS is 2.61.

So could Adobe Systems Incorporated, be undervalued? Well as said before P/E is 50.29. The PEG is 3.12, P/S is 10.57 and the P/B is at 8.57. The P/cash is 13.98, with P/free cash flow at 28.97.

Adobe Systems Incorporated ability to deal with debt shows that the current ratio is 1.9, and the quick ratio is 1.9. This is with long term debt/equity at 0.25, and total debt/equity at 0.25.

In terms of margins, Adobe Systems Incorporated has a gross margin of 86.00%, an operating margin of 26.90% and a profit margin of 21.30%.Payout ratio for Adobe Systems Incorporated is 0.00%. Return on assets come to 10.40% with return on investment coming to 13.20%.

Insider ownership for Adobe Systems Incorporated, is at 0.10% and institutional ownership comes to 88.90%. Outstanding shares are at 494.7. While shares float is 493.06. The float short is currently 1.01%, and short ratio is 2.14.

Graphs: Adobe Systems Incorporated NASDAQ: ADBE | Friday April 21, 2017

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Adobe Systems Incorporated NASDAQ: ADBE

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Adobe Systems Incorporated NASDAQ: ADBE

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Mark Hines

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