Adobe’s stock (NASDAQ
NDAQ
: ADBE
DBE
) has gained 53% YTD as compared to the 13% rise in the S&P500 index over the same period. Further, ADBE stock is currently trading around $514, which is 13% below its fair value of $594 – Trefis’ estimate for Adobe’s valuation.
Interestingly, Adobe
ADBE
stock had a Sharpe Ratio of 0.8 since early 2017, which is higher than 0.6 for the S&P 500 Index over the same period. This compares with the Sharpe of 1.25 for the Trefis Reinforced Value portfolio. Sharpe is a measure of return per unit of risk, and high-performance portfolios can provide the best of both worlds.
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