Analog Devices, Inc. designs, manufactures, and markets a portfolio of solutions that leverage analog, mixed-signal, and digital signal processing technology, including integrated circuits (ICs), algorithms, software, and subsystems. More info.
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value. We use
analyst's estimates of cash flows going forward 5 years.
See our documentation to learn about this calculation.
|Levered FCF (USD, Millions)||$1,376.33||$2,060.97||$2,158.75||$2,223.40||$2,439.54|
|Source||Analyst x4||Analyst x9||Analyst x6||Analyst x2||Extrapolated @ (9.72%)|
Discounted (@ 11.39%)
Present value of next 5 years cash flows:
Terminal Value = FCF2021 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $2,440 × (1 + 2.47%) ÷ (11.39% – 2.47%)
Terminal value based on the Perpetuity Method where growth (g) =
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows +
$23,665 = $7,325 + $16,340
Value = Total value / Shares Outstanding ($23,665 / 368)Discount to Share Price
Value per share:
Current discount (share price of $88.65): -37.73%
The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.
Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
Discount rate = 11.39% = 2.47% + (1.185 * 7.53%)
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value ($33,159,953,921).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
1.185 = 1.01 (1 + (1- 30%) (24.73%))
Levered Beta used in calculation = 1.185
Mr. Vincent T. Roche, also known as Vince, has been the President of Analog Devices, Inc. since November 5, 2012 and has been its Chief Executive Officer since May 2013. Mr. Roche served as an Interim Chief Executive Officer of Analog Devices Inc. from March 29, 2013 to May 2013. He served as a Vice President of Sales and Strategic Market Segments Group at Analog Devices Inc. since October 2009 until November 2012. Mr. Roche served as a Vice President of Strategic Market Segments (SMS) Group at Analog Devices Inc. since October 29, 2009 until November 2012. He served as a Vice President of Worldwide Sales at Analog Devices, Inc. from March 2001 to October 29, 2009. In this role, he was responsible for direct customer sales, distribution and e-commerce for all product lines, as well as corporate marketing and public relations at Analog Devices. Mr. Roche began his career at ADI in 1988 as a senior marketing engineer in Limerick, Ireland. He served as Vice President and General Manager of Silicon Valley Business Units and Computer & Networking of Analog from 1999 to March 2001, served as its Product Line Director from 1995 to 1999 and also served as its Product Marketing Manager from 1988 to 1995. He has been Chairman of the Board of Acacia Communications, Inc. since May 15, 2017. He has been a Director of Acacia Communications, Inc. since June 1, 2016 and Analog Devices, Inc. since May 2013. Mr. Roche earned a BS in electrical engineering from Limerick University in Ireland.
Average tenure and age of the Analog Devices management team in years:
Average tenure and age of the Analog Devices board of directors in years:
Analog Devices, Inc. designs, manufactures, and markets a portfolio of solutions that leverage analog, mixed-signal, and digital signal processing technology, including integrated circuits (ICs), algorithms, software, and subsystems. It offers data converter products, which translate real-world analog signals into digital data, as well as translates digital data into analog signals; high-performance amplifiers to condition analog signals; and radio frequency ICs to support cellular infrastructure. The company also provides MEMS technology solutions, including accelerometers used to sense acceleration, gyroscopes to sense rotation, and inertial measurement units to sense multiple degrees of freedom. In addition, it offers isolators for various applications, such as universal serial bus isolation in patient monitors; and smart metering and satellite applications. Further, the company provides power management and reference products; and digital signal processing products for high-speed numeric calculations. Its products are used in electronic equipment, including industrial process control systems, medical imaging equipment, factory automation systems, patient monitoring devices, instrumentation and measurement systems, wireless infrastructure equipment, energy management systems, networking equipment, aerospace and defense electronics, optical systems, automobiles, and portable electronic devices. The company serves clients in industrial, automotive, consumer, and communications markets through a direct sales force, third-party distributors, and independent sales representatives in the United States, rest of North/South America, Europe, Japan, China, and rest of Asia, as well as through its Website. It has a collaboration with TriLumina Corp. to provide illuminator modules for automotive flash LiDAR systems. Analog Devices, Inc. was founded in 1965 and is headquartered in Norwood, Massachusetts.
|Name:||Analog Devices, Inc.|
Analog Devices, Inc.
One Technology Way,
PO Box 9106,
|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|NasdaqGS||ADI||Common Stock||Nasdaq Global Select||US||USD||02. Jan 1969|
|DB||ANL||Common Stock||Deutsche Boerse AG||DE||EUR||02. Jan 1969|
|WBAG||ADI||Common Stock||Wiener Boerse AG||AT||EUR||02. Jan 1969|
|Sector:||Semiconductors and Semiconductor Equipment|