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Is this the ultimate cash flow king?

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On first glance, the US tech giant's 35 times price to earnings valuation looks excessive, but take into account the 60% compound annual EPS growth over the last five years and it becomes far more reasonable. In fact, this company has managed to hit an elusive PEG ratio of less than 1. Add in the fact that this company is a US software giant with a hugely profitable subscription business model and this is surely the ultimate investment.

US tech giants have a habit of gobbling up novel competitors before they get too big. Think Facebook’s (US: FB.) acquisition of Snapchat; Google and Youtube; Amazon (US: AMZN) and Audible, Alexa and the 99 other companies it has acquired in the last 22 years. Few Silicon Valley start-ups have resisted the advances of a tech giant when it comes calling. Even fewer have gone on to transform themselves into similarly successful beasts of the digital era.

Adobe (US: ADBE) is an exception. True, Apple (US: AAPL) wasn’t the leading computer company it is today when its chief executive Steve Jobs…

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