ADI Valuation

Analog Devices Inc

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232.660

+1.11(0.479%)1D

Overview
Forecast
Valuation
Earnings

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 28.58 is considered Fairly compared with the five-year average of 23.93. The fair price of Analog Devices Inc (ADI) is between 200.20 to 276.54 according to relative valuation methord.

Relative Value

Fair Zone

200.20-276.54

Current Price：231.55

Fair

28.58

Trailing

Forward

24.29

EV/EBITDA

Analog Devices Inc. (ADI) has a current EV/EBITDA of 24.29. The 5-year average EV/EBITDA is 19.63. The thresholds are as follows: Strongly Undervalued below 10.37, Undervalued between 10.37 and 15.00, Fairly Valued between 24.26 and 15.00, Overvalued between 24.26 and 28.89, and Strongly Overvalued above 28.89. The current Forward EV/EBITDA of 24.29 falls within the Overvalued range.

24.88

EV/EBIT

Analog Devices Inc. (ADI) has a current EV/EBIT of 24.88. The 5-year average EV/EBIT is 21.06. The thresholds are as follows: Strongly Undervalued below 10.85, Undervalued between 10.85 and 15.95, Fairly Valued between 26.16 and 15.95, Overvalued between 26.16 and 31.26, and Strongly Overvalued above 31.26. The current Forward EV/EBIT of 24.88 falls within the Historic Trend Line -Fairly Valued range.

10.16

Analog Devices Inc. (ADI) has a current PS of 10.16. The 5-year average PS is 8.64. The thresholds are as follows: Strongly Undervalued below 5.36, Undervalued between 5.36 and 7.00, Fairly Valued between 10.27 and 7.00, Overvalued between 10.27 and 11.91, and Strongly Overvalued above 11.91. The current Forward PS of 10.16 falls within the Historic Trend Line -Fairly Valued range.

25.62

P/OCF

Analog Devices Inc. (ADI) has a current P/OCF of 25.62. The 5-year average P/OCF is 20.08. The thresholds are as follows: Strongly Undervalued below 12.04, Undervalued between 12.04 and 16.06, Fairly Valued between 24.10 and 16.06, Overvalued between 24.10 and 28.12, and Strongly Overvalued above 28.12. The current Forward P/OCF of 25.62 falls within the Overvalued range.

28.09

P/FCF

Analog Devices Inc. (ADI) has a current P/FCF of 28.09. The 5-year average P/FCF is 23.21. The thresholds are as follows: Strongly Undervalued below 13.59, Undervalued between 13.59 and 18.40, Fairly Valued between 28.02 and 18.40, Overvalued between 28.02 and 32.83, and Strongly Overvalued above 32.83. The current Forward P/FCF of 28.09 falls within the Overvalued range.

Analog Devices Inc (ADI) has a current Price-to-Book (P/B) ratio of 3.28. Compared to its 3-year average P/B ratio of 2.75 , the current P/B ratio is approximately 19.49% higher. Relative to its 5-year average P/B ratio of 3.13, the current P/B ratio is about 5.01% higher. Analog Devices Inc (ADI) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.64%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.55% , the current FCF yield is about -100.00% lower.

3.28

P/B

Median3y

2.75

Median5y

3.13

2.87

FCF Yield

Median3y

3.64

Median5y

3.55

Competitors Valuation Multiple

The average P/S ratio for ADI's competitors is 10.49, providing a benchmark for relative valuation. Analog Devices Inc Corp (ADI) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 22.28%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Micron Technology Inc

Marvell Technology Inc

7.65

63.26%

66.17B

Performance Decomposition

Market capitalization of ADI decreased by 1.40% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 14.00 to 21.58.

The secondary factor is the Revenue Growth, contributed 22.28%to the performance.

Overall, the performance of ADI in the past 1 year is driven by Margin Expansion. Which is more sustainable.

22.28%

2.16B → 2.64B

Revenue Growth

54.14%

14.00 → 21.58

Margin Expansion

-77.82%

283.90 → 62.97

P/E Change

-1.40%