Analog Devices, Inc. (ADI) 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

-58.8%

$175.10

vs $424.61 price

Levered DCF

$178.97

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

9.18

Safe zone

Rating

B+

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	51.01×	68.33×	24.33×	27.39×	49.57×	35.81×	29.64×	21.58×
P/B	3.42×	3.18×	2.27×	2.06×	1.81×	3.64×	3.45×	2.87×
P/S	10.5×	11.87×	6.55×	6.26×	9.42×	7.8×	6.74×	5.19×
EV / EBITDA	24.24×	27.96×	14.06×	14.36×	28.51×	20.65×	17.9×	13.96×
Gross margin	61.5%	57.1%	64.0%	65.0%	66.4%	65.9%	67.0%	68.3%
Operating margin	26.6%	21.6%	31.1%	27.3%	23.1%	26.7%	28.6%	30.5%
Net margin	20.6%	17.3%	26.9%	22.9%	19.0%	21.8%	22.8%	24.2%
Current ratio	2.19×	1.84×	1.37×	2.02×	1.94×	1.84×	1.32×	2.01×
Debt / equity	0.26×	0.22×	0.2×	0.18×	0.18×	0.43×	0.47×	0.56×
Interest coverage	9.23×	6.31×	14.45×	16.36×	9.16×	7.75×	7.47×	7.49×
Dividend yield	1.7%	1.6%	2.1%	2.1%	1.6%	2.0%	1.9%	2.2%
Payout ratio	84.9%	109.8%	50.7%	56.2%	79.8%	72.6%	57.0%	46.7%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	6.7%	4.6%	9.3%	7.5%	3.7%	10.2%	11.6%	13.4%
Return on invested capital	5.4%	4.0%	7.5%	6.1%	3.4%	6.9%	7.8%	8.9%
Return on assets	4.7%	3.4%	6.8%	5.5%	2.7%	5.7%	6.4%	7.4%
Free cash flow yield	3.7%	2.8%	4.4%	5.0%	3.5%	4.2%	4.9%	6.8%
Earnings yield	2.0%	1.5%	4.1%	3.7%	2.0%	2.8%	3.4%	4.7%
Enterprise value	$121.9B	$117.5B	$86.7B	$80.4B	$73.8B	$47.8B	$45.2B	$37.8B
Net debt / EBITDA	1.23×	1.35×	0.98×	0.92×	1.87×	1.78×	1.92×	2.04×
Cash conversion cycle (days)	143	138	138	126	185	121	110	98