Adobe is trading well south of 20 times forward earnings, compared with historical values in the 30 to 40 times range—even bears have been throwing in the towel on the valuation front.

As a result, while Adobe stock looks expensive when valued on net income (its P/E is 39.3x), when valued on cash profits, Adobe sports a slimmer 26.9 price-to-free cash flow ratio.

Adobe Inc. (NASDAQ:ADBE) is one of the 11 stocks on Jim Cramer’s radar. Cramer recommended buying Adobe Inc. (NASDAQ:ADBE) shares for “under 20 times earnings”. “Adobe reports after the ...