Peter Lynch's formula is:
Adobe Fair Value
= Earnings Growth Rate x TTM EPS
Adobe Fair Value
= 19.31 x 10.72
Adobe Fair Value
= 206.98
The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.
| Historical Earnings | ||||||
| 2019-11-29 | 2020-11-27 | 2021-12-03 | 2022-12-02 | 2023-12-01 | 5Y Avg | |
| Net income | 2,951.00 | 5,260.00 | 4,822.00 | 4,756.00 | 5,428.00 | 4,643.40 |
| YoY growth | 13.89% | 78.24% | -8.33% | -1.37% | 14.13% | 19.31% |
