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 2026-04-20.
Adobe Inc. · Technology
$248.16
+45.0% upside to fair value
High Conviction
Grade B
VS
Costco Wholesale Corporation · Consumer Defensive
$999.89
-20.7% upside to fair value
Grade D
High Quality
QuantHub Verdict
ADBE has more upside to fair value
(+45.0%).
ADBE trades at a lower forward P/E
(14.1x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
ADBE |
COST |
| Current Price |
$248.16 |
$999.89 |
| Fair Value Estimate |
$359.82 |
$793.02 |
| Upside to Fair Value |
+45.0%
|
-20.7%
|
| Market Cap |
$101.2B |
$443.6B |
| Forward P/E |
14.1x
|
51.9x
|
| EV / EBITDA |
—
|
30.9x
|
| Price / Sales |
4.1x
|
1.6x
|
| Price / FCF |
9.8x
|
48.8x
|
| Revenue Growth YoY |
+3.3%
|
+9.2%
|
| Gross Margin |
89.1%
|
12.9%
|
| Operating Margin |
36.6%
|
3.8%
|
| Return on Equity |
62.3%
|
28.8%
|
| Dividend Yield |
— |
0% |
| FCF Yield |
10.2%
|
2.05%
|
| Analyst Consensus |
Hold
|
Buy
|
Investment Thesis
Adobe Inc. develops industry-leading creative software, digital experience platforms, and publishing tools, powering digital content creation and marketing for professionals worldwide. The business excels with high gross margins above 89%, a sticky subscription model driving recurring revenue over $17B ARR, and dominant moats in digital media, though it faces intensifying AI competition and slowi…
Costco Wholesale Corporation operates a global membership-based warehouse club model that leverages scale, low costs, and superior employee retention to deliver consistent revenue and earnings growth. The company reported $269.9 billion in net sales for fiscal 2025 with an 8% year-over-year increase, driven by strong segments in Foods and Sundries and membership fees exceeding $5.65 billion in th…
Accumulation Zones
| Metric |
ADBE |
COST |
| Zone Low |
$269.87 |
$594.76 |
| Zone High |
$305.85 |
$674.07 |
| In Buy Zone? |
Yes
|
No
|