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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 98.81 (-1.51% today). The market cap for Adobe Systems Incorporated is 51246.47, and is in the sector Technology, and Application Software industry. The target price for Adobe Systems Incorporated is 112.46. Currently Adobe Systems Incorporated is trading with a P/E of 56.68, and a forward P/E of 26.32. Average volume for Adobe Systems Incorporated is 2299.33 and so far today it is 274664.

Performance in the last year for Adobe Systems Incorporated has been 26.68%. For EPS growth, Adobe Systems Incorporated has seen a growth of 135.20%, and is looking to grow in the next year to 32.83%. More long term stats show that EPS growth has been -3.40% over the last five years and could be 28.18% for the next five years. Adobe Systems Incorporated has seen sales growth quarter over quarter at 20.30%, with EPS growth quarter over quarter at 65.80%. The 20-day simple moving average is -0.38%, with the 200-day simple moving average coming to 5.62%.

Since the IPO date for Adobe Systems Incorporated on the 8/14/1986, Adobe Systems Incorporated has seen performance year to date to be 6.79%. With Adobe Systems Incorporated trading at 98.81, the dividend yield is *TBA, and the EPS is 1.77.

So could Adobe Systems Incorporated, be undervalued? Well as said before P/E is 56.68. The PEG is 2.01, P/S is 9.66 and the P/B is at 6.92. The P/cash is 11.87, with P/free cash flow at 32.28.

Adobe Systems Incorporated ability to deal with debt shows that the current ratio is 2.2, and the quick ratio is 2.2. This is with long term debt/equity at 0.26, and total debt/equity at 0.

In terms of margins, Adobe Systems Incorporated has a gross margin of 85.10%, an operating margin of 22.40% and a profit margin of 16.90%.Payout ratio for Adobe Systems Incorporated is 0.00%. Return on assets come to 7.60% with return on investment coming to 7.40%.

Insider ownership for Adobe Systems Incorporated, is at 0.10% and institutional ownership comes to 89.30%. Outstanding shares are at 510.83. While shares float is 495.81. The float short is currently 0.99%, and short ratio is 2.13.

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.

About the author

Mark Hines

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