ADI Relative Valuation
ADI's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, ADI is overvalued; if below, it's undervalued.
Historical Valuation
Analog Devices Inc (ADI) is now in the Fair zone, suggesting that its current forward PE ratio of 28.44 is considered Fairly compared with the five-year average of 24.18. The fair price of Analog Devices Inc (ADI) is between 224.12 to 317.18 according to relative valuation methord.
Relative Value
Fair Zone
224.12-317.18
Current Price：281.29
Fair
28.44
PE
1Y
3Y
5Y
Trailing
Forward
18.26
EV/EBITDA
Analog Devices Inc. (ADI) has a current EV/EBITDA of 18.26. The 5-year average EV/EBITDA is 19.75. The thresholds are as follows: Strongly Undervalued below 10.48, Undervalued between 10.48 and 15.11, Fairly Valued between 24.38 and 15.11, Overvalued between 24.38 and 29.02, and Strongly Overvalued above 29.02. The current Forward EV/EBITDA of 18.26 falls within the Historic Trend Line -Fairly Valued range.
24.67
EV/EBIT
Analog Devices Inc. (ADI) has a current EV/EBIT of 24.67. The 5-year average EV/EBIT is 21.26. The thresholds are as follows: Strongly Undervalued below 11.08, Undervalued between 11.08 and 16.17, Fairly Valued between 26.34 and 16.17, Overvalued between 26.34 and 31.43, and Strongly Overvalued above 31.43. The current Forward EV/EBIT of 24.67 falls within the Historic Trend Line -Fairly Valued range.
10.58
PS
Analog Devices Inc. (ADI) has a current PS of 10.58. The 5-year average PS is 8.78. The thresholds are as follows: Strongly Undervalued below 5.55, Undervalued between 5.55 and 7.17, Fairly Valued between 10.39 and 7.17, Overvalued between 10.39 and 12.00, and Strongly Overvalued above 12.00. The current Forward PS of 10.58 falls within the Overvalued range.
25.21
P/OCF
Analog Devices Inc. (ADI) has a current P/OCF of 25.21. The 5-year average P/OCF is 20.25. The thresholds are as follows: Strongly Undervalued below 12.21, Undervalued between 12.21 and 16.23, Fairly Valued between 24.26 and 16.23, Overvalued between 24.26 and 28.28, and Strongly Overvalued above 28.28. The current Forward P/OCF of 25.21 falls within the Overvalued range.
29.15
P/FCF
Analog Devices Inc. (ADI) has a current P/FCF of 29.15. The 5-year average P/FCF is 23.49. The thresholds are as follows: Strongly Undervalued below 13.99, Undervalued between 13.99 and 18.74, Fairly Valued between 28.24 and 18.74, Overvalued between 28.24 and 32.99, and Strongly Overvalued above 32.99. The current Forward P/FCF of 29.15 falls within the Overvalued range.
Analog Devices Inc (ADI) has a current Price-to-Book (P/B) ratio of 4.07. Compared to its 3-year average P/B ratio of 2.89 , the current P/B ratio is approximately 40.74% higher. Relative to its 5-year average P/B ratio of 3.11, the current P/B ratio is about 31.06% higher. Analog Devices Inc (ADI) has a Forward Free Cash Flow (FCF) yield of approximately 3.11%. Compared to its 3-year average FCF yield of 3.48%, the current FCF yield is approximately -10.73% lower. Relative to its 5-year average FCF yield of 3.50% , the current FCF yield is about -11.34% lower.
4.07
P/B
Median3y
2.89
Median5y
3.11
3.11
FCF Yield
Median3y
3.48
Median5y
3.50
Competitors Valuation Multiple
The average P/S ratio for ADI's competitors is 12.06, providing a benchmark for relative valuation. Analog Devices Inc Corp (ADI) exhibits a P/S ratio of 10.58, which is -12.30% above the industry average. Given its robust revenue growth of 25.90%, this premium appears sustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ADI increased by 32.40% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 19.40 to 30.47.
The secondary factor is the Revenue Growth, contributed 25.90%to the performance.
Overall, the performance of ADI in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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