Adeia Inc. (ADEA) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-46.3%

$11.10

vs $20.67 price

Levered DCF

$8.36

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

4.09

Safe zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	16.91×	23.69×	19.67×	-3.34×	-9.43×	3.12×	-3.85×	-825.42×
P/B	3.92×	3.83×	3.7×	3.28×	0.39×	0.31×	0.44×	0.38×
P/S	4.25×	4.04×	3.4×	2.25×	0.6×	0.51×	0.86×	0.59×
EV / EBITDA	9.33×	9.32×	7.83×	5.11×	5.16×	3.48×	11.06×	4.11×
Gross margin	87.2%	80.6%	75.5%	74.0%	59.7%	71.6%	58.9%	70.0%
Operating margin	47.2%	37.8%	37.4%	36.8%	2.9%	22.2%	-22.7%	12.3%
Net margin	25.1%	17.2%	17.3%	-67.4%	-6.3%	16.5%	-22.3%	-0.1%
Current ratio	3.81×	3.53×	2.02×	1.55×	2.74×	2.43×	5.84×	7.34×
Debt / equity	0.89×	1.22×	1.67×	2.44×	0.57×	0.63×	0.65×	0.78×
Interest coverage	5.18×	2.71×	2.33×	3.57×	0.65×	5.24×	-2.72×	1.95×
Dividend yield	1.2%	1.4%	1.6%	20.6%	4.0%	6.7%	16.4%	16.5%
Payout ratio	19.6%	33.7%	31.7%	-68.9%	-37.8%	21.0%	-63.2%	-13559.5%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	23.1%	16.3%	18.9%	-98.2%	-4.1%	10.1%	-11.4%	-0.0%
Return on invested capital	16.8%	10.8%	11.5%	14.0%	1.1%	7.8%	-4.9%	-1.1%
Return on assets	10.7%	5.9%	6.1%	-24.4%	-2.2%	5.4%	-6.0%	-0.0%
Free cash flow yield	7.9%	12.5%	11.1%	17.2%	42.1%	80.6%	64.9%	53.7%
Earnings yield	5.9%	4.3%	5.1%	-29.9%	-10.6%	32.0%	-26.0%	-0.1%
Enterprise value	$2.2B	$1.9B	$1.9B	$1.6B	$1.2B	$1.2B	$519.6M	$606.3M
Net debt / EBITDA	1.48×	1.97×	2.28×	1.97×	2.94×	2.16×	5.95×	2.5×
Cash conversion cycle (days)	99	94	71	83	43	97	176	240