ADBEOPEN PRODUCT SAMPLE
ADBE
SECULAR MONOPOLY · moat widening
VERIX GRADEA+92/100 · HIGH CONFIDENCE
BuyGate DEPLOY
Buy — below fair value
Standing VERIX verdict, mapped to the member taxonomy. Model gate is separate: VERIX requires promoted coverage, trustworthy pricing, HIGH confidence, and the full 15% entry gate before displaying DEPLOY.
Price is inside the 15% margin-of-safety gate on a HIGH-confidence underwrite.
MARKET PRICE$242.59+1.70% · hydrated live
BUY AT OR BELOW$373.18fair value ÷ 1.15 · exact 15% MoS
UNDERWRITE
Why it is on the desk
ADBE is a dominant business with lasting pricing power — the kind that tends to keep winning. The engine rates it its highest tier — reserved for the rare, durable compounders.
- Its competitive edge is getting stronger, not weaker.
- It puts to work exceptionally well the money it reinvests — about 63 cents of profit a year on every dollar of capital (ROIC 63%).
- The engine's model expects it to grow value around 14% a year, after costs — its best estimate, not a promise.
- Its financial statements look very healthy (Piotroski 8/9), and bankruptcy risk is remote (Altman Z 7.7).
Buy-ready: the price is inside the engine's margin-of-safety window and every quality gate passes.
Engine notes (technical)
ROIC at 62.9%. Gross Margin at 89.3%. Elite compounding profile. Fortress balance sheet. SECULAR MONOPOLY posture (durable pricing power + stable margins).
THESIS BREAK
The rule that matters more than the story
Monitor: ROIC down 5 consecutive years (4 transitions) AND gross margin down >10pp over that window
WHY THIS GRADE
Strong on every measure we publish.
What lifts it
- Returns on capital — earns 63% on every dollar put to work
- Growth — the business grew 14% last year
- Financial health — 8 of 9 on the accounts check
- Balance sheet — far from financial distress
- Competitive edge — widening
+62.9%
8/9
7.74Z'' non-manufacturing model
GRADE TIMESTAMP2026-08-26 19:48:57
CAPITAL REINVESTMENT ENGINE
10-Year Compounding Trajectory · ADBE vs. S&P 500
Model capital expansion driven by ADBE's verified 62.9% ROIC reinvestment rate vs. the S&P 500 index.
A+92 Score
Scenarios:
Initial Principal$10,000
$1k$100k$250k
Monthly Inflow$500/mo
$0$2.5k$10k/mo
Horizon10 Years
3Y10Y25Y
Compounding Curve (10-Year Horizon)
● ADBE (13.6%)● S&P 500 (10.2%)● Principal
ADBE Ending Value (13.6% CAGR)$157,508⚡ 2.3x Capital Return (62.9% ROIC)
S&P 500 Benchmark (10.2% CAGR)$128,214Total Capital Inflow: $70,000
Excess Alpha Generated+$29,294Net outperformance over market index
Rule of 72 Doubling HorizonEvery 5.3 Years
Terminal Annual Free Cash Flow$7,088/yr
Yield on Cost10.1% / year