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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 107.84 (-0.16% today). The market cap for Adobe Systems Incorporated is 53705.4, and is in the sector Technology, and Application Software industry. The target price for Adobe Systems Incorporated is 118.71. Currently Adobe Systems Incorporated is trading with a P/E of 54.94, and a forward P/E of 27.92. Average volume for Adobe Systems Incorporated is 2151.92 and so far today it is 1968000.

Performance in the last year for Adobe Systems Incorporated has been 24.28%. For EPS growth, Adobe Systems Incorporated has seen a growth of 135.20%, and is looking to grow in the next year to 30.02%. More long term stats show that EPS growth has been -3.40% over the last five years and could be 30.60% for the next five years. Adobe Systems Incorporated has seen sales growth quarter over quarter at 20.20%, with EPS growth quarter over quarter at 55.90%. The 20-day simple moving average is 4.41%, with the 200-day simple moving average coming to 13.39%.

Since the IPO date for Adobe Systems Incorporated on the 8/14/1986, Adobe Systems Incorporated has seen performance year to date to be 14.80%. With Adobe Systems Incorporated trading at 107.84, the dividend yield is *TBA, and the EPS is 1.96.

So could Adobe Systems Incorporated, be undervalued? Well as said before P/E is 54.94. The PEG is 1.8, P/S is 9.67 and the P/B is at 7.39. The P/cash is 12.08, with P/free cash flow at 30.89.

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 85.50%, an operating margin of 23.60% and a profit margin of 17.90%.Payout ratio for Adobe Systems Incorporated is 0.00%. Return on assets come to 8.20% 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 498.01. While shares float is 494.64. The float short is currently 1.03%, and short ratio is 2.37.

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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Tony Dabbs

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