GuruFocus said on September 01, 2026 that Adobe was worth $713.44 a share under its Discounted Cash Flow analysis, a figure that put the stock well above its current price of $292.79 and led it to call Adobe significantly undervalued. The same analysis gave the FCF-based version a value of $776.25, reinforcing the view that the shares were trading at a wide discount.
The timing matters because Adobe had already been sliding, with GuruFocus saying the stock was down 16.3% year to date and 17.9% over one year. That drop gives the valuation call immediate relevance for anyone scanning ADBE now, especially after a period when investors have already spent months marking the shares lower.
The valuation case rested on a two-stage DCF model. GuruFocus said the first stage reflects a high-growth phase, while the second stage uses a more stable terminal growth rate of 4%. It also said the earnings-based DCF relied on EPS excluding non-recurring items, a detail that matters because small changes in those forecasts can move the final number sharply.
Still, the conclusion came with a caveat that keeps the estimate from sounding definitive. GuruFocus said Adobe carried a predictability rank of 1/5 stars, and that low mark makes any DCF result less secure even when the model points in the same direction as the broader valuation work. The setup is part of why the call lands as a judgment rather than a clean answer.
That broader picture also looked supportive on paper. GuruFocus said Adobe’s GF Value was $593.98 and its GF Score was 86/100, while the company’s FCF-based margin of safety was 62.3% and its earnings-based margin of safety was 59.0%. It also said 19 gurus currently hold the stock, with 11 adding and 8 trimming, while insiders had been net sellers over the past 12 months.
For now, the sharpest takeaway is that GuruFocus sees a stock priced far below its own valuation work, but the same model carries enough uncertainty that the gap should be treated as a guide, not a verdict. The open question is whether Adobe’s next stretch of trading validates the discount or makes the $713.44 call look too optimistic.
