Image from Pixabay Adobe (ADBE) stock has lost about a third of its value over the past year, while the S&P 500 (SPY) gained about 18%. It has already bounced 28% in three months. Yet near $250 it still sits about 32% below its 52-week high. At current levels, multiple expansion appears largely contingent upon Adobe's ability to monetize its rapidly expanding freemium base before core top-line growth decelerates. Is Adobe Stock Cheap At Half Its Usual Multiple? Adobe trades at about 15.6 times earnings over the past year, roughly half its three-year average of 30.9 times. Its net margin, at 28.7%, sits close to its three-year average of 27.9%. A multiple below its average on margins that are above their average is fair rather than cheap.
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