Adobe Systems Inc 0

(ADBE) September 28, 2010

Figures in Millions except per share values
Company Overview Low Risk
Adobe Systems Incorporated (Adobe) is a diversified software company. The 5
Company offers a line of creative, business, Web and mobile software and services 4
used by creative professionals, knowledge workers, consumers, original equipment
manufacturer, developers and enterprises for creating, managing, delivering and 3
Strong Moat High Growth
engaging with content and experiences across multiple operating systems, devices 2
and media. It distributes its products through a network of distributors, value-added 1
resellers (VARs), systems integrators, independent software vendors (ISVs) and
OEMs, direct to end users and through its own Website at www.adobe.com. It also 0
licenses its technology to hardware manufacturers, software developers and service
providers, and offer integrated software solutions to businesses of all sizes. It has
operations in the Americas, Europe, Middle East and Africa (EMEA), and Asia.On Good Financial
Under Valued
October 23, 2009, Adobe completed the acquisition of Omniture, Inc. Health

Valuation Well Managed

Current Price $ 26.28 Margin of Safety 5 Yr Price vs Intrinsic Value
-97%
NCAV $ 0.85 60
-45%
Total Net Reprod. Cost $ 14.40
-15%
Earnings Power Value (EPV) $ 22.41 50
36%
Discounted Cash Flow (DCF) $ 35.70
Ben Graham Formula $ 37.37 42% 40

30
Key Statistics Valuation Ratios
Market Cap (millions) $ 13,800.00 P/E (TTM) 30.0 20
52-Week High $ 38.20 P/S (TTM) 4.0
52-Week Low $ 25.81 10
% off 52-Week Low 1.8% P/Tang. BV (MRQ) 12.0
FCF/EV (TTM) 3.5% 0
Cash Flows P/FCF (TTM) 15.0 1/20/2004 1/20/2006 1/20/2008 1/20/2010
Free Cash Flow Earnings Yld (TTM) 9.0%
Historical Price Intrinsic Value Buy Price
5 yr FCF Growth 17.2% Piotroski (TTM) 6
10 yr FCF Growth 17.8% Altman (MRQ) 4.47
Beneish (TTM) -2.89 Balance Sheet
Effectiveness Cash and Equiv $ 1,137.00
CROIC Margins & Profitability Short-Term Investments $ 3,271.10
Avg 25.0% Gross Accts Rec $ 923.60
FCF/S Gross Margin Inventory $ -
Avg 33.9% Operating Total Current Assets $ 5,505.30
ROA Operating Margin Net PP&E $ 422.90
Avg 12.7% Net Profit Intangibles $ 3,903.04
ROE Net Margin Total Assets $ 10,215.91
Avg 15.6%
Financial Strength (MRQ) Total Current Liabilities $ 592.47
Efficiency Quick Ratio 3.4 Long-Term Debt $ 1,515.80
Receivable Turnover (TTM) 9.3 Current Ratio 3.4 Total Liabilities $ 2,828.17
Inventory Turnover (TTM) 0.0 LT Debt to Equity 29.8
Asset Turnover (TTM) 0.5 Total Debt to Equity 30.0