On Sep 18, 2026 both Adobe Systems and Intuit showed near-identical Fair Value discounts - 66.6% for Adobe and 68.3% for Intuit - but that surface-level parity masks materially different business and valuation profiles.
The numbers at a glance
| Metric | Adobe Systems (ADBE) | Intuit (INTU) |
|---|---|---|
| Price | $248.66 | $304.79 |
| Market Cap | $100.4B | $83.7B |
| Fair Value | $414.39 | $513.22 |
| Fair Value Upside | 66.6% | 68.3% |
| Analyst Upside | 6.9% | 29.5% |
| P/E (LTM) | 13.6x | 18.0x |
| P/E (Fwd) | 10.3x | 13.7x |
| PEG Ratio | 1.19 | 0.90 |
| EV/EBITDA | 10.3x | 12.2x |
| Gross Margin | 89.3% | 81.0% |
| Net Margin | 30.0% | 21.3% |
| ROE | 61.9% | 23.6% |
| FCF Yield | 10.7% | 10.6% |
| Revenue Growth | 12.0% | 13.9% |
| Debt/Equity | 57.5% | 44.3% |
Adobe - a high-margin franchise trading at modest forward multiples
Adobe stands out for its exceptionally large gross margin, recorded at 89.3%, roughly 850 basis points higher than Intuit's 81.0%. That margin advantage feeds through to a net margin of 30.0% and a return on equity of 61.9%, demonstrating a capital-efficient earnings profile. Free cash flow yield for Adobe registers at 10.7%, essentially level with Intuit on that measure, while Adobe's forward P/E of 10.3x and EV/EBITDA of 10.3x indicate a valuation that is not demanding relative to the quality described by its margins and returns.
Despite these strengths, the consensus analyst price target implies only 6.9% upside to current share price levels. The limited analyst upside is noted as the primary component of the bear case, implying the market or the Street may be skeptical of the Fair Value projection or that nearer-term headwinds are anticipated.
Intuit - faster growth and stronger Street conviction
Intuit posts faster revenue growth at 13.9% compared with Adobe's 12.0%. The company also shows notable improvement in profitability over a five-year span, with net margin rising to 21.3% from 16.2% as noted in the underlying data. Intuit's PEG ratio of 0.90 is the defining valuation signal in this comparison - the sub-1.0 PEG implies a lower price per unit of growth, a classic indicator of growth-at-a-reasonable-price orientation.
Analyst conviction behind Intuit is materially higher: consensus analyst upside sits at 29.5%, a wide gap versus Adobe's 6.9% figure. Intuit trades at higher trailing and forward multiples - a 18.0x P/E (LTM) and 13.7x forward P/E - and carries a slightly higher EV/EBITDA at 12.2x. Its debt-to-equity ratio is lower than Adobe's, at 44.3% versus 57.5%.
How the trade-offs break down
The comparison reduces to a set of clear trade-offs. For investors prioritizing valuation on traditional multiples and superior margin profiles, Adobe offers a stronger margin-of-safety: lower P/E and EV/EBITDA, higher gross and net margins, superior ROE, and comparable FCF yield. For those focused on growth-adjusted value and Street conviction, Intuit is more compelling: faster revenue growth, a PEG ratio below 1.0, and substantially higher analyst upside.
Both firms have posted steady revenue growth and close FCF yield metrics, but their risk-reward profiles diverge depending on whether the investor prizes margin durability and capital efficiency or growth per unit of price and analyst support.