Adobe Inc (ADBE) is undervalued and Automatic Data Processing Inc (ADP) is undervalued.
Against our estimates of intrinsic value, ADBE trades at the wider discount: a margin of safety of +65%, against +44% for ADP.
Values as of the 22 Sept 2026 close.
A 10.6x revenue multiple, adjusted for growth and margin, values the shares at $687.96; the price of $238.25 is 65% below that value.
Leak Score 85/100 on 10 of 12 signals
A 8.8x revenue multiple, adjusted for growth and margin, values the shares at $484.32; the price of $269.64 is 44% below that value.
Leak Score 95/100 on 9 of 12 signals
| Metric | ADBE | ADP |
|---|---|---|
| Verdict | Undervalued | Undervalued |
| Price | $238.25 | $269.64 |
| Intrinsic value | $687.96 | $484.32 |
| Margin of safety | +65% | +44% |
| Leak Score | 85/100 (10/12) | 95/100 (9/12) |
| Market cap | $94.7B | $107.1B |
| Revenue growth, 5 years | 13.1% | 7.9% |
| Operating margin | 36.4% | 26.4% |
| Net margin | 28.1% | 20.1% |
| Return on equity | 61.9% | 72.2% |
| Debt to equity | 0.57 | 0.91 |
| P/E | 13.3x | 24.6x |
| Forward P/E | 8.6x | 20.1x |
| P/B | 8.3x | 17.8x |
| Dividend yield | — | 2.6% |