Analog Devices, Inc.

NasdaqGS:ADI Stock Report

Market Cap: US$102.5b

Analog Devices Valuation

Is ADI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ADI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ADI ($209.65) is trading below our estimate of fair value ($257.4)

Significantly Below Fair Value: ADI is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ADI?

Key metric: As ADI is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ADI. This is calculated by dividing ADI's market cap by their current earnings.
What is ADI's PE Ratio?
PE Ratio62.9x
EarningsUS$1.66b
Market CapUS$102.45b

Price to Earnings Ratio vs Peers

How does ADI's PE Ratio compare to its peers?

The above table shows the PE ratio for ADI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average75.3x
MU Micron Technology
139x31.5%US$106.8b
NXPI NXP Semiconductors
20.6x9.7%US$55.2b
AMD Advanced Micro Devices
123.5x40.5%US$218.9b
QCOM QUALCOMM
18.1x7.0%US$178.3b
ADI Analog Devices
62.9x25.7%US$102.5b

Price-To-Earnings vs Peers: ADI is good value based on its Price-To-Earnings Ratio (62.9x) compared to the peer average (75.3x).

Price to Earnings Ratio vs Industry

How does ADI's PE Ratio compare vs other companies in the US Semiconductor Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TOYO TOYO
4.7xn/aUS$146.46m
SQNS Sequans Communications
1.5x-156.5%US$64.23m
No more companies available in this PE range
ADI 62.9xIndustry Avg. 30.6xNo. of Companies9PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ADI is expensive based on its Price-To-Earnings Ratio (62.9x) compared to the US Semiconductor industry average (30.6x).

Price to Earnings Ratio vs Fair Ratio

What is ADI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ADI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio62.9x
Fair PE Ratio34.5x

Price-To-Earnings vs Fair Ratio: ADI is expensive based on its Price-To-Earnings Ratio (62.9x) compared to the estimated Fair Price-To-Earnings Ratio (34.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ADI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$209.65
US$255.38
+21.8%
8.7%US$295.00US$212.10n/a27
Nov ’25US$225.48
US$254.83
+13.0%
9.2%US$295.00US$197.30n/a27
Oct ’25US$223.67
US$254.98
+14.0%
9.2%US$295.00US$197.30n/a27
Sep ’25US$234.84
US$257.29
+9.6%
8.7%US$295.00US$197.30n/a27
Aug ’25US$218.92
US$254.37
+16.2%
8.5%US$285.00US$197.30n/a26
Jul ’25US$225.18
US$251.35
+11.6%
9.6%US$285.00US$197.30n/a27
Jun ’25US$234.49
US$249.89
+6.6%
10.0%US$285.00US$197.30n/a27
May ’25US$193.89
US$212.30
+9.5%
7.2%US$254.00US$185.00n/a28
Apr ’25US$196.62
US$210.90
+7.3%
6.2%US$230.00US$185.00n/a28
Mar ’25US$196.16
US$211.12
+7.6%
6.1%US$230.00US$185.00n/a28
Feb ’25US$192.01
US$206.86
+7.7%
6.7%US$230.00US$175.00n/a27
Jan ’25US$198.56
US$204.21
+2.8%
6.1%US$225.00US$175.00n/a27
Dec ’24US$183.07
US$202.00
+10.3%
5.6%US$220.00US$175.00n/a27
Nov ’24US$159.24
US$200.26
+25.8%
6.1%US$220.00US$175.00US$225.4827
Oct ’24US$175.09
US$200.35
+14.4%
5.9%US$220.00US$175.00US$223.6726
Sep ’24US$182.43
US$200.63
+10.0%
5.9%US$220.00US$175.00US$234.8426
Aug ’24US$199.48
US$207.01
+3.8%
6.4%US$235.00US$175.00US$218.9226
Jul ’24US$194.81
US$205.28
+5.4%
6.0%US$235.00US$175.00US$225.1826
Jun ’24US$180.41
US$206.02
+14.2%
6.5%US$235.00US$175.00US$234.4926
May ’24US$182.54
US$217.75
+19.3%
8.0%US$251.00US$175.00US$193.8927
Apr ’24US$197.22
US$215.96
+9.5%
8.2%US$251.00US$175.00US$196.6228
Mar ’24US$183.11
US$215.96
+17.9%
8.2%US$251.00US$175.00US$196.1628
Feb ’24US$176.59
US$194.21
+10.0%
6.6%US$215.00US$160.00US$192.0128
Jan ’24US$164.03
US$194.71
+18.7%
8.0%US$220.00US$145.00US$198.5628
Dec ’23US$171.48
US$193.03
+12.6%
7.9%US$220.00US$145.00US$183.0727
Nov ’23US$144.70
US$189.03
+30.6%
10.6%US$220.00US$140.00US$159.2425

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

Discover undervalued companies

Peraso

US$2.3m

A fabless semiconductor company, develops, markets, and sells semiconductor devices and antenna modules in the United States, Hong Kong, Taiwan, and internationally.

PRSO

US$0.86

7D

-23.3%

1Y

-90.1%

Amkor Technology

US$6.2b

Provides outsourced semiconductor packaging and test services in the United States, Japan, Europe, the Middle East, Africa, and the Asia Pacific.

AMKR

US$25.39

7D

-6.3%

1Y

-6.2%

NXP Semiconductors

US$55.2b

Offers various semiconductor products.

NXPI

US$220.19

7D

-3.0%

1Y

8.3%