## ADBE PE Stream Chart Analysis As of the latest data point (mid-March 2026), ADBE's stock price stands at approximately **$246**, which places it right at the boundary of the **14.7x PE (Undervalued)** zone — the lowest PE stream boundary priced at **$246.04**. This means the stock is trading at or just below the 14.7x PE multiple threshold, firmly within the **"Undervalued"** zone. With the next boundary (24.9x PE) sitting at **$416.59**, the current price is dramatically below even the second-lowest PE band, signaling that ADBE is trading at historically depressed valuation levels relative to its own earnings history. This represents a significant compression from prior years and suggests the market is pricing the stock at its most conservative valuation multiple within the observed range. Looking at the historical trend, ADBE's valuation journey has been one of dramatic expansion followed by a prolonged and steep contraction. From early 2021 through late 2021, the stock traded well above the **35.1x–45.3x PE** bands (the "Watch" to "Overvalued" zone), with monthly average prices ranging from roughly **$470 to $664**, reflecting peak growth-stock enthusiasm. Beginning in 2022, a sharp de-rating began as the stock fell from above the 45.3x boundary into the **35.1x–45.3x interval** and then progressively lower, bottoming near the **24.9x–35.1x ("Fair" to "Watch") interval** through 2022–2023 at prices around **$300–$390**. A partial recovery in mid-to-late 2023 briefly pushed the stock back toward the **35.1x–45.3x** zone, with prices reaching approximately **$595–$604**. However, from early 2024 onward, the stock resumed its downward valuation trajectory, sliding through the **24.9x–35.1x** and then the **14.7x–24.9x** intervals. By early 2026, the price collapsed to approximately **$246–$264**, breaching into the **"Undervalued"** zone for the first time in the entire observed period. Notably, the PE stream boundaries themselves shifted upward meaningfully starting in Q1'25 — reflecting improved earnings estimates — yet the stock price failed to keep pace, amplifying the valuation discount. The overall trend of the PE river chart shows a moderately upward-sloping stream (indicating gradual earnings growth), but the stock price has dramatically underperformed these rising boundaries, resulting in the most compressed valuation positioning seen across this entire multi-year dataset.