ADBE
Adobe Systems Incorporated
TMT
11/01/2013
Presented
| Date | 10/29/2013 |
| Price | $53.93 |
| Market Cap | $27.00B |
| Ent Value | $25.31B |
| P/E Ratio | 147.02x |
| Book Value | $13.62 |
| Div Yield | N/A |
| Shares O/S | 499.89M |
| Ave Daily Vol | 2,230,000 |
| Short Int | 1.39% |
Current
| Price | $508.03 |
| Market Cap | $223.63B |
| Adobe Systems Incorporated operates as a diversified software company worldwide. The company operates in three segments: Digital Media, Digital Marketing, and Print and Publishing. The Digital Media segment provides tools and solutions that enable individuals, small businesses, and enterprises to create, publish, promote, and monetize their digital content anywhere. Its flagship product includes Adobe Creative Cloud, which is an ongoing membership service that lets customers to download and install the latest version of the company’s Adobe Creative Suite desktop products and other creative software. This segment serves traditional content creators, Web application developers, and digital media professionals, as well as their management in marketing departments and agencies, companies, and publishers. The Digital Marketing segment provides solutions and services for how digital advertising and marketing are created, managed, executed, measured, and optimized. This segment provides analytics, social, targeting, media optimization, and experience management solutions through its Adobe Marketing Cloud, which helps to manage and optimize online, offline, digital, and multi-channel business initiatives. Its customers include digital marketers, advertisers, publishers, merchandisers, Web analysts, chief marketing officers, and chief revenue officers. The Print and Publishing segment provides products and services that address diverse market opportunities, including eLearning solutions, technical document publishing, Web application development, and high-end printing. It offers Adobe PostScript and Adobe PDF printing technologies; and licenses its technology to original equipment manufacturers (OEMs). The company distributes its products through a network of distributors, value-added resellers, systems integrators, independent software vendors, retailers, and OEMs. Adobe Systems Incorporated was founded in 1982 and is headquartered in San Jose, California. |
Highlights
Although Adobe’s (ADBE) stock currently trades at over 30x 2014 Street EPS estimates, the presenter said it is not really that expensive. The company is in the midst of a transition from a licensing model to a subscription model, and if ADBE stuck with the licensing model, the presenter said next year’s EPS would have come in around $3.20 (as opposed to ~$1.50). The business transition is a major catalyst for growth, in his opinion, and his model suggests ADBE could earn as much as $5.00 per-share, per year by 2017-2018.
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