Adobe's Economic Margins Expected to Continue to Improve

In addition to company specific research, AFG’s research platform provides valuable investment tools that help analysts better understand an investment and how a company compares to different peer groups. One of those tools is AFG’s Value Driver template which benchmarks the value drivers that are essential in modeling a company.

The chart below shows us that Adobe (ADBE) has consistently delivered Economic Margins (EMs) better than the market as well as their peers and are expected to continue to improve EMs above their peer group in future years. AFG’s Value Expectations interface uses the three main value drivers to forecast out cash flows for companies to build out different pro-forma scenarios using Sales Growth, Asset Turns, and EBITDA margins. Adobe also delivered Sales Growth and EBITDA margins better than their peers.

Adobe is a company we hold in our large cap model portfolio, the AFG50. For more information on the AFG 50 click here. If you would like to read the full 10-page report on adobe please contact us.

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