Analog Devices, Inc.

Valuation Analysis

About the Company

Analog Devices, Inc. engages in the design, manufacture, testing, and marketing of integrated circuits (ICs), software, and subsystems products in the United States, rest of North and South America, Europe, Japan, China, and rest of Asia. It provides data converter products, which translate real-world analog signals into digital data, as well as translates digital data into analog signals; power management and reference products for power conversion, driver monitoring, sequencing, and energy management applications in the automotive, communications, industrial, and consumer markets; and power ICs that include performance, integration, and software design simulation tools for accurate power supply designs. The company also offers amplifiers to condition analog signals; and radio frequency a

Analog Devices, Inc. Stock at a Glance

Analog Devices, Inc. (ADI) is currently trading at $417.79 with a market capitalization of $203.5B. The trailing P/E ratio stands at 62.08x, with a forward P/E of 28.28x. The 52-week range spans from $218.37 to $439.70; the current price is 5% below the yearly high. Year-over-year revenue growth stands at +37.2%. The net profit margin stands at 26.01%.

💰 Dividend

Analog Devices, Inc. pays an annual dividend of $4.40 per share, representing a yield of 1.05%. The payout ratio stands at 60.57%.

📊 Analyst Rating

31 analysts rate Analog Devices, Inc. (ADI) on consensus: Buy. The average price target is $451.03, implying +7.96% from the current price. Analyst price targets range from $363.00 to $515.00.

Analog Devices, Inc.: The Investment Case in Detail

Analog Devices, Inc. (ADI) operates in the Technology — specifically Semiconductors — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Top-line momentum is unusually strong with revenue expanding 37.2% year-over-year, a pace that puts the company well above the market average and signals genuine demand traction rather than mere cyclical tailwind. With a gross margin near 64.49%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns. Free cash flow is positive and net margins stand at 26.01%, meaning reported earnings translate into real cash that can fund buybacks, dividends or strategic acquisitions.

The Bear Case

Our valuation screen flags the stock as overvalued — current multiples imply the business needs to deliver well above its recent trajectory to justify the price.

Valuation in Context

With a PEG ratio of 0.91, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity. The EV/EBITDA multiple of 33.95x reflects rich expectations — historically, multiples at this level have proven hard to maintain for more than a few quarters.

What to Watch Next

• The forward P/E of 28.28x is meaningfully below the trailing 62.08x — analysts expect earnings to step up; the next earnings release is the test.
• The share is trading at 90.1% of its 52-week range — a break above the recent high opens technical upside, a failure here often invites profit-taking.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to market-like volatility.

Trading Data

💵 Dividend Info

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