ADBE vs MSFT: Which Is the Better Buy?
Side-by-side comparison of Adobe Inc. and Microsoft Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-23.
Adobe Inc. · Technology
$238.25
+13.5% upside to fair value
Med Conviction
Grade B
High Quality
VS
Microsoft Corporation · Technology
$497.12
+41.3% upside to fair value
High Conviction
Grade A
High Quality
QuantHub Verdict
MSFT has more upside to fair value
(+41.3%).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
ADBE |
MSFT |
| Current Price |
$238.25 |
$497.12 |
| Fair Value Estimate |
$270.38 |
$702.35 |
| Upside to Fair Value |
+13.5%
|
+41.3%
|
| Market Cap |
$94.7B |
$3,691.4B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
9.5x
|
18.3x
|
| Price / Sales |
3.6x
|
11.1x
|
| Price / FCF |
8.6x
|
55.1x
|
| Revenue Growth YoY |
+12.9%
|
+17.7%
|
| Gross Margin |
89.1%
|
67.9%
|
| Operating Margin |
35.7%
|
46.8%
|
| Return on Equity |
62.9%
|
33.2%
|
| Dividend Yield |
0% |
0.73% |
| FCF Yield |
11.63%
|
1.81%
|
| 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…
Microsoft is a global infrastructure-software platform spanning Azure, Microsoft 365, security, Dynamics, Windows, GitHub and AI copilots, with high business quality supported by enterprise distribution, explicitly cited switching costs, a $678 billion commercial RPO balance, 67.9% TTM gross margin, 46.8% TTM operating margin, 40.3% TTM net margin and 33.2% ROE. Revenue grew 17.7% and earnings gr…
Accumulation Zones
| Metric |
ADBE |
MSFT |
| Zone Low |
$202.78 |
$526.76 |
| Zone High |
$229.82 |
$597.00 |
| In Buy Zone? |
No
|
Yes
|