Adobe Inc Stock Intrinsic Value – Adobe-Figma Merger Likely to Reduce Competition in the Market
December 4, 2023

🌥️Trending News
The news of the Adobe/Figma merger has caused some speculation about the competitive landscape in the market. It is likely that the merger will reduce the number of competitors in the market, as Adobe is already a dominant player in the digital media, marketing and creative software industry. The combination of Adobe’s market presence and Figma’s user-friendly design platform could potentially create a monopoly in the space, giving Adobe a significant edge in the market. Adobe Inc ($NASDAQ:ADBE). is a multinational software company based in California, USA. It specializes in creating software for digital media, marketing, and creative cloud-based applications.
The company has steadily increased its market share and profits over the years with its products such as Photoshop and Illustrator. It has also acquired several companies in recent years to expand its reach and portfolio. The recent merger with Figma could further solidify its position as a market leader and disrupt the competitive landscape.
Price History
On Tuesday, ADOBE INC stock opened at $614.0 and closed at $623.3, up 0.7% from the previous closing price of 619.3. This increase in stock price may be attributed to the announcement of a likely merger between ADOBE and Figma, a web-based interface design and collaboration tool. The merger between two of the leading software providers is expected to significantly reduce competition in the market, allowing them to provide more advanced services and improved customer experience.
With this merger, ADOBE INC is likely to gain a significant market share, enabling it to further expand its presence in the software industry. The details of the proposed merger are yet to be announced, but it is anticipated that this move will bring about positive changes in the software industry as a whole. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Adobe Inc. More…
| Total Revenues | Net Income | Net Margin |
| 18.89k | 5.12k | 27.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Adobe Inc. More…
| Operations | Investing | Financing |
| 8.03k | 554 | -5.88k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Adobe Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 29.09k | 13.31k | 34.65 |
Key Ratios Snapshot
Some of the financial key ratios for Adobe Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 14.9% | 17.1% | 35.1% |
| FCF Margin | ROE | ROA |
| 40.4% | 27.0% | 14.2% |
Analysis – Adobe Inc Stock Intrinsic Value
At GoodWhale, we have conducted an analysis of ADOBE INC‘s financials to determine the fair value of its share. We used our proprietary Valuation Line to calculate the fair value of ADOBE INC share at around $556.9. Interestingly, the share is currently trading at $623.3, which is a fair price that is overvalued by 11.9%. This could be due to optimistic market sentiment or market conditions that make investors willing to pay more for the stock. More…

Peers
Adobe Inc is a leading software company that offers a range of products, including Creative Cloud, Photoshop, and Acrobat. Its main competitors are Crowd Media Holdings Ltd, Creative Realities Inc, and PT Solusi Sinergi Digital Tbk.
– Crowd Media Holdings Ltd ($ASX:CM8)
Crowd Media Holdings Ltd is a social media and technology company. The company has a market cap of 15.12M as of 2022 and a Return on Equity of -36.63%. The company enables brands and celebrities to connect with their fans and followers through social media. The company also provides technology solutions for social media marketing and management.
– Creative Realities Inc ($NASDAQ:CREX)
Creative Realities, Inc. is a digital customer engagement company that designs, develops, and sells customer engagement solutions in the retail, hospitality, and museums and exhibitions markets worldwide. The company offers a portfolio of customer engagement solutions, including AReality, a cloud-based content management system that provides users with the ability to create, manage, and deliver content to AR/VR devices; and InReality, an AR/VR platform that enables users to create, manage, and deliver AR/VR experiences. It also provides turnkey systems integration services. The company was formerly known as Creative Realities, LLC and changed its name to Creative Realities, Inc. in July 2015. Creative Realities, Inc. was founded in 2010 and is headquartered in New York, New York.
Creative Realities Inc has a market cap of 12.84M as of 2022 and a Return on Equity of 9.18%. The company offers a portfolio of customer engagement solutions, including AReality, a cloud-based content management system that provides users with the ability to create, manage, and deliver content to AR/VR devices; and InReality, an AR/VR platform that enables users to create, manage, and deliver AR/VR experiences. It also provides turnkey systems integration services.
– PT Solusi Sinergi Digital Tbk ($IDX:WIFI)
In 2022, PT Solusi Sinergi Digital Tbk had a market capitalization of 410.06 billion Indonesian rupiah and a return on equity of 23.38%. The company provides digital printing, document management, and other related services in Indonesia.
Summary
Adobe Inc. is an American software company best known for its industry-leading products in the fields of digital photography, digital imaging, and graphic design. In recent news, Adobe has announced a proposed acquisition of Figma, a web-based user interface design platform. Analysts are concerned that the deal could result in a substantial lessening of competition, since the two companies are seen as direct competitors in the same space. Investors should consider this development when making their decisions on Adobe stock, as the impact of the deal on the company’s bottom line is yet to be seen.
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