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Analog Devices, Inc. — Intrinsic Value & Fair Price

ADI
NASDAQTechnologySemiconductorsCIK 0000006281analog.comAbout ADI
Last close · Oct 16, 2026395.44−8.51 (−2.11%)
Market cap$191.6B
Model value · DCF · Perpetuity growth · 5y
198.78
Analog Devices closed at $395.44 — overvalued by 99% vs model.
139.76the model's range342.95

DCF · Perpetuity growth · 5y leads for a cyclical company — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
40.83 – 717.76
Wall St. target
460.00 14% below
Above model, 1y
15 of 22 days

Price and model value

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What the marks mean
Daily close

Dividends

Quarterly · as of Oct 16, 2026
Yield, trailing 12 months
1.08%
Past 2 years
low 0.94%high 2.28%
Dividends per share, a year at a time
$2.69Aug ’21$2.97Aug ’22$3.34Sep ’23$3.62Sep ’24$3.89Sep ’25$4.29TTM
Dividends / free cash flow, FY2025
45.0%
Raised
22+ years in a row
Growth, 5 yrs
9.8% a year
Last change
+11.1% · Mar 2026
Every payment, with ex-dates · latest $1.10, paid Sep 15, 2026

Research on ADI

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How it is valued

Valued asCyclical
Revenue declining (~-5% recent)High profitability (21% net margin)Pays dividendsHighly cyclical earnings
What growth the price implies: the reverse DCF

Key figures

FY2025 · chosen for cyclical companies
P/E
86.7×
EV / EBITDA
39.3×
FCF yield
2.2%
Dividend yield, TTM
1.08%
Beta
1.23
Cost of capital (WACC)
9.63%
Full financials

Analyst actions

third-party, quoted
09-08Piper Sandler · target460.00
08-24Robert W. Baird · target675.00
08-20Seaport Global · “Buy” from “Neutral”upgrade
08-20Bernstein · “Outperform” from “Market Perform”upgrade
Ratings, targets and estimates

The weekly

One email a week across every stock we cover: 13F filings, insider trades, earnings and new research. It covers the whole market, not just ADI. No account.

About Analog Devices

Analog Devices, Inc. (ADI) is a technology leader specializing in the conception, production, validation, and global marketing of integrated circuits (ICs), software solutions, and advanced subsystems. Their offerings leverage sophisticated analog, mixed-signal, and digital signal processing technologies. The company's comprehensive product lineup features data converters, which are critical for transforming real-world analog signals into digital data and subsequently converting digital data back into analog signals. They also provide power management and reference devices, essential for power conversion, driver supervision, system sequencing, and energy optimization in industries such as automotive, telecommunications, industrial applications, and premium consumer markets. These power ICs are supported by integrated performance, integration, and software design simulation tools for precise power supply development. ADI's portfolio further includes high-performance amplifiers, designed for conditioning analog signals, as well as radio frequency (RF) and microwave ICs that underpin cellular infrastructure. They also develop microelectromechanical systems (MEMS) technology, encompassing accelerometers for sensing acceleration, gyroscopes for measuring rotation, inertial measurement units (IMUs) for detecting multi-axis movement, broadband switches for radio and instrumentation systems, and isolators. Moreover, the company supplies digital signal processing (DSP) and system products engineered for rapid numeric calculations. Serving a wide array of clients across the industrial, automotive, consumer, instrumentation, aerospace, and communications sectors, Analog Devices distributes its products globally. This is accomplished via a multifaceted approach, including a direct sales force, authorized third-party distributors, independent sales representatives throughout the United States, the Americas, Europe, Japan, China, and other regions of Asia, in addition to its online platform. Analog Devices, Inc. was founded in 1965 and is headquartered in Wilmington, Massachusetts.

CEO
Vincent T. Roche
Headquarters
Wilmington, MA
Employees
24,500
IPO
1980-03-17
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.