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 2026-07-08.
Adobe Inc. · Technology
$219.72
+45.0% upside to fair value
Grade B
High Quality
VS
Costco Wholesale Corporation · Consumer Defensive
$947.50
-1.4% upside to fair value
Grade C
High Quality
QuantHub Verdict
ADBE has more upside to fair value
(+45.0%).
ADBE trades at a lower forward P/E
(12.6x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
ADBE |
COST |
| Current Price |
$219.72 |
$947.50 |
| Fair Value Estimate |
$318.59 |
$933.84 |
| Upside to Fair Value |
+45.0%
|
-1.4%
|
| Market Cap |
$87.3B |
$420.2B |
| Forward P/E |
12.6x
|
47.6x
|
| EV / EBITDA |
9.0x
|
28.3x
|
| Price / Sales |
3.5x
|
1.4x
|
| Price / FCF |
8.2x
|
47.7x
|
| Revenue Growth YoY |
+12.7%
|
+11.6%
|
| Gross Margin |
89.1%
|
12.9%
|
| Operating Margin |
36.1%
|
3.8%
|
| Return on Equity |
62.4%
|
28.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
12.17%
|
2.1%
|
| Analyst Consensus |
Hold
|
Buy
|
Investment Thesis
Adobe Inc. is a leading software company specializing in digital media and digital experience solutions, driven primarily by subscription-based revenue models. The company benefits from a high-quality business model characterized by a durable competitive moat, strong margins with a gross margin of 89.1% and operating margin of 36.1%, and robust return on equity at 62.4%. Despite solid revenue gro…
Costco Wholesale Corporation operates as a membership-only warehouse club offering a wide range of merchandise at low prices. The company exhibits high business quality with a durable competitive moat driven by cost advantages, strong brand loyalty, and efficient operations, reflected in a robust ROE of 28.3% and solid revenue growth of 11.6% in the most recent quarter. Despite these strengths, t…
Accumulation Zones
| Metric |
ADBE |
COST |
| Zone Low |
$238.94 |
$700.38 |
| Zone High |
$270.80 |
$793.76 |
| In Buy Zone? |
Yes
|
No
|