ADBE vs COST: Which Is the Better Buy?
Side-by-side comparison of Adobe Inc. and Costco Wholesale Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-25.
Adobe Inc. · Technology
$238.25
+13.5% upside to fair value
Med Conviction
Grade B
High Quality
VS
Costco Wholesale Corporation · Consumer Defensive
$896.48
+24.7% upside to fair value
Med Conviction
Grade B
High Quality
QuantHub Verdict
COST has more upside to fair value
(+24.7%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
ADBE |
COST |
| Current Price |
$238.25 |
$896.48 |
| Fair Value Estimate |
$270.38 |
$1,117.50 |
| Upside to Fair Value |
+13.5%
|
+24.7%
|
| Market Cap |
$94.7B |
$397.6B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
9.5x
|
32.7x
|
| Price / Sales |
3.6x
|
1.3x
|
| Price / FCF |
8.6x
|
42.4x
|
| Revenue Growth YoY |
+12.9%
|
+11.1%
|
| Gross Margin |
89.1%
|
17.5%
|
| Operating Margin |
35.7%
|
3.9%
|
| Return on Equity |
62.9%
|
28.0%
|
| Dividend Yield |
0% |
0.62% |
| FCF Yield |
11.63%
|
2.36%
|
| Analyst Consensus |
Hold
|
Strong Buy
|
Investment Thesis
Adobe is a global software provider organized into Digital Media, Digital Experience, and Publishing and Advertising, with Creative Cloud as its subscription flagship and Document Cloud as its cloud-native document platform. The business quality is high on fundamentals: TTM gross margin of 89.1%, TTM operating margin of 35.7%, TTM net margin of 28.0%, ROE of 62.9%, and free cash flow of $27.69 pe…
Costco Wholesale Corporation operates a global network of membership-based warehouse clubs, selling branded and private-label merchandise across the United States, Canada, Mexico, Japan, the United Kingdom, South Korea, Taiwan, Australia, Spain, France, Iceland, and China, supplemented by pharmacies, optical centers, food courts, hearing aid centers, tire installation, 636 gas stations, and e-com…
Accumulation Zones
| Metric |
ADBE |
COST |
| Zone Low |
$202.78 |
$838.12 |
| Zone High |
$229.82 |
$949.88 |
| In Buy Zone? |
No
|
Yes
|