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)||$2,060.97||$2,158.75||$2,223.40||$2,486.94||$2,781.71|
|Source||Analyst x9||Analyst x6||Analyst x2||Extrapolated @ (11.85%)||Extrapolated @ (11.85%)|
Discounted (@ 10.9%)
Present value of next 5 years cash flows:
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $2,782 × (1 + 2.47%) ÷ (10.9% – 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 +
$28,690 = $8,545 + $20,145
Value = Total value / Shares Outstanding ($28,690 / 373)Discount to Share Price
Value per share:
Current discount (share price of $86.09): -11.83%
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 = 10.9% = 2.47% + (1.12 * 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 ($32,083,503,885).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
1.12 = 0.977 (1 + (1- 40%) (24.47%))
Levered Beta used in calculation = 1.12
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:
In this article I am going to calculate the intrinsic value of Analog Devices Inc (NASDAQ:ADI) by taking the foreast future cash flows of the company and discounting them back to today's value. … 5-year cash flow forecast 2017 2018 2019 2020 2021 Levered FCF ($, Millions) $1,376.33 $2,060.97 $2,158.75 $2,223.40 $2,486.94 Source Analyst x4 Analyst x9 Analyst x6 Analyst x2 Extrapolated @ (11.85%) Present Value Discounted @ 10.6% $1,244.41 $1,684.83 $1,595.62 $1,485.89 $1,502.71 Present Value of 5-year Cash Flow (PVCF)= $7,513 We now need to calculate the Terminal Value, which accounts for all the future cash flows after the five years. … NasdaqGS:ADI Intrinsic Value Dec 30th 17 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.Simply Wall St - – Full article
Below, I've presented key growth figures on how market analysts perceive Analog Devices's earnings growth outlook over the next couple of years and whether the future looks brighter. … View our latest analysis for Analog Devices Market analysts' consensus outlook for next year seems buoyant, with earnings rising by a significant 87.61%. … This means that, we can assume Analog Devices will grow its earnings by 27.23% every year for the next couple of years.Simply Wall St - – Full article
Analog Devices Inc (NASDAQ:ADI) is considered a high growth stock but its last closing price of $85.8 made some investors wonder if it can be still rationalized by the high growth potential. … Analog Devices is poised for extremely high earnings growth in the near future. … As Warren Buffett’s right-hand man Charlie Munger said, “No matter how wonderful a business is, it’s not worth an infinite price.” Analog Devices is available at price-to-earnings ratio of 40.99x, showing us it is overvalued compared to the US market average ratio of 19.44x , and overvalued based on current earnings compared to the semiconductors and semiconductor equipment industry average of 20.32x.Simply Wall St - – Full article
NasdaqGS:ADI Historical Debt Dec 6th 17 A basic way to evaluate ADI's debt management is to see whether the cash flow generated from the business is at a relatively high level compared to the debt capital invested. … ADI’s recent operating cash flow was 0.14 times its debt within the past year. … ADI’s cash flow coverage indicates it could improve its operating efficiency in order to meet demand for debt repayments should unforeseen events arise.Simply Wall St - – Full article
This indicates a relatively solid earnings per share growth rate of 179.51% over the next few years, which is an optimistic outlook in the near term. … NasdaqGS:ADI Past Future Earnings Nov 21st 17 Is the growth built on solid basis? … However, ADI’s earnings growth in the past couple of years has been negative at -10.33%.Simply Wall St - – Full article
Analog Devices's most recent earnings is $675M, which compared to last year’s level, Since these figures are relatively nearsighted, I’ve estimated an annualized five-year figure for ADI's earnings, which stands at $727M. … This suggests that Analog Devices's average annual earnings have previously been higher, which implies a falling trend in earnings. … Analog Devices's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story.Simply Wall St - – Full article
NasdaqGS:ADI Future Profit Oct 20th 17 Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. … ADI’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. … If you are no longer interested in Analog Devices, you can use our free platform to see my list of over 50 other stocks with a high growth potential.Simply Wall St - – Full article
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|
|LSE||0HFN||Common Stock||London Stock Exchange||GB||USD||02. Jan 1969|
|WBAG||ADI||Common Stock||Wiener Boerse AG||AT||EUR||02. Jan 1969|
|Company Analysis updated:||2018/02/18|
|Last estimates confirmation:||2018/02/13|
|Last earnings update:||2017/10/28|
|Last annual earnings update:||2017/10/28|
All dates in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.