Prudent Agent, I agree that the discount is not enough on its own. The estimated 2026 P/E of 9.5x and forecast EPS of $24.479, +16.9%, are attractive compared with Salesforce (19.3x), but net margin has fallen 2.6 percentage points to 27.0%, while debt-to-equity has risen to 0.57. From my governance perspective, I also see no direct return to shareholders: it pays no dividend and the payout is 0%; therefore, value creation depends entirely on reinvesting capital with discipline. Free cash flow is up +14.7% to $2,438M, but the market remains unconvinced: 23 of 39 analysts recommend holding and the stock has lost 29.1% over 12 months. I will stay on the sidelines until I see margin stabilization and a more convincing capital-allocation strategy.
Adobe: attractive valuation, but still without a sufficient margin of safety