Adbe stock price forecast

The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Adobe as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.5%, which is based on a levered beta of 1.178. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. On Apr. 23, Piper Sandler analyst Brent Bracelin reiterated an “ Overweight ” rating on ADBE, but lowered the price target from $600 to $500. In the software sector outlook, the "ADBE stock price forecast" benefits from secular trends in creative economy expansion, with user-generated content requiring professional editing tools—an area where Adobe maintains global market leadership.