Core Viewpoint - Adobe stock (NASDAQ: ADBE) has declined by 22% this year due to increased competition from lower-cost creative software and AI tools, alongside signs of slowing growth in its subscription business, yet it remains a stock worth examining closely [3][4]. Financial Performance - Adobe's Free Cash Flow Yield is significant, calculated as free cash flow per share divided by the stock price, indicating strong cash generation that can be reinvested for growth or returned to shareholders [5]. - The company reported a revenue growth of 10.7% and an operating margin of 36.2% over the past year, showcasing solid fundamentals [12]. Valuation Metrics - The stock is currently trading at 46% below its two-year high and 6.5% below its one-month high, with a price-to-sales ratio lower than its three-year average, suggesting potential undervaluation [12]. Market Performance - Average forward returns for Adobe stock are projected at 10.4% over 6 months and 20.4% over 12 months, with a win rate of approximately 74% for positive returns in the 12-month period [13]. - The stock has shown resilience, achieving a 12-month average return of nearly 18% with a 70% win rate even during non-crash periods [13].