Adobe Inc (ADBE) is undervalued and Shopify Inc (SHOP) is overvalued.
Against our estimates of intrinsic value, ADBE trades at the wider discount: a margin of safety of +65%, against -285% for SHOP.
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
Discounting its cash flows at 15.7% (average of 3 methods) values the shares at $38.39; the price of $147.74 is 285% above that value, and 59% of that value comes from beyond year five.
Leak Score 27/100 on 3 of 12 signals
| Metric | ADBE | SHOP |
|---|---|---|
| Verdict | Undervalued | Overvalued |
| Price | $238.25 | $147.74 |
| Intrinsic value | $687.96 | $38.39 |
| Margin of safety | +65% | -285% |
| Leak Score | 85/100 (10/12) | 27/100 (3/12) |
| Market cap | $94.7B | $190.1B |
| Revenue growth, 5 years | 13.1% | 31.6% |
| Operating margin | 36.4% | 17.8% |
| Net margin | 28.1% | 14.5% |
| Return on equity | 61.9% | 15.5% |
| Debt to equity | 0.57 | 0.01 |
| P/E | 13.3x | 99.7x |
| Forward P/E | 8.6x | 59.9x |
| P/B | 8.3x | 15.0x |