Analog Devices Valuation
| ADI Stock | USD 196.50 6.57 3.46% |
At this time, the firm appears to be fairly valued. Analog Devices shows a prevailing Real Value of $191.84 per share. The current price of the firm is $196.5. Our model approximates the value of Analog Devices from analyzing the firm fundamentals such as profit margin of 0.24 %, and Return On Equity of 0.0781 as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor purchasing undervalued instruments and trading away overvalued instruments since, at some point, asset prices and their ongoing real values will blend. Key fundamental drivers impacting Analog Devices' valuation include:
Price Book 2.6822 | Enterprise Value 99.9 B | Enterprise Value Ebitda 18.1714 | Price Sales 8.242 | Forward PE 31.4465 |
Fairly Valued
Today
Please note that Analog Devices' price fluctuation is very steady at this time. Calculation of the real value of Analog Devices is based on 3 months time horizon. Increasing Analog Devices' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Analog Devices is useful when determining the fair value of the Analog stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Analog Devices. Since Analog Devices is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Analog Stock. However, Analog Devices' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 196.5 | Real 191.84 | Target 200.48 | Hype 189.93 | Naive 184.86 |
The real value of Analog Stock, also known as its intrinsic value, is the underlying worth of Analog Devices Company, which is reflected in its stock price. It is based on Analog Devices' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Analog Devices' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Analog Devices' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Analog Devices helps investors to forecast how Analog stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Analog Devices more accurately as focusing exclusively on Analog Devices' fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Analog Devices' intrinsic value based on its ongoing forecasts of Analog Devices' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Analog Devices' closest peers. When choosing an evaluation method for Analog Devices, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Analog Devices Investments |
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Analog Valuation Trend
Knowing Analog Devices' actual value is paramount for traders to make sound investment determinations. Analog Devices' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Analog Devices' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Analog Devices' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Analog Market Cap
Analog Devices is rated fourth in market capitalization category among related companies. Market capitalization of Information Technology industry is presently estimated at about 1.19 Trillion. Analog Devices holds roughly 94.19 Billion in market capitalization claiming about 8% of equities under Information Technology industry.Analog Devices Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Analog Devices's current stock value. Our valuation model uses many indicators to compare Analog Devices value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Analog Devices competition to find correlations between indicators driving Analog Devices's intrinsic value. More Info.Analog Devices is rated third in price to earning category among related companies. It is rated below average in price to book category among related companies fabricating about 0.05 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Analog Devices is roughly 18.43 . The current Price To Book Ratio is estimated to decrease to 2.64. Comparative valuation analysis is a catch-all model that can be used if you cannot value Analog Devices by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Analog Devices' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Analog Devices' earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Analog Devices' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Analog Devices and how it compares across the competition.
About Analog Devices Valuation
The stock valuation mechanism determines the current worth of Analog Devices on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Analog Devices. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Analog Devices based exclusively on its fundamental and basic technical indicators. By analyzing Analog Devices's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Analog Devices's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Analog Devices. We calculate exposure to Analog Devices's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Analog Devices's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 9.1 B | 9.5 B | |
| Pretax Profit Margin | 0.23 | 0.15 | |
| Operating Profit Margin | 0.27 | 0.16 | |
| Net Profit Margin | 0.22 | 0.13 | |
| Gross Profit Margin | 0.66 | 0.47 |
Analog Devices Quarterly Retained Earnings |
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8 Steps to conduct Analog Devices' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Analog Devices' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Analog Devices' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Analog Devices' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Analog Devices' revenue streams: Identify Analog Devices' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Analog Devices' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Analog Devices' growth potential: Evaluate Analog Devices' management, business model, and growth potential.
- Determine Analog Devices' financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Analog Devices' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Analog Devices represents a small ownership stake in the entity. As a stockholder of Analog, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Analog Devices Dividends Analysis For Valuation
The Analog Devices' current Dividends Paid is estimated to increase to about 2 B, while Dividend Yield is projected to decrease to 0.02. . As of now, Analog Devices' Retained Earnings are increasing as compared to previous years. The Analog Devices' current Earnings Yield is estimated to increase to 0.03, while Retained Earnings Total Equity is projected to decrease to under 5.4 B.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 1.9 B | 2 B | |
| Dividend Yield | 0.02 | 0.02 | |
| Dividend Payout Ratio | 0.73 | 0.43 | |
| Dividend Paid And Capex Coverage Ratio | 2.79 | 1.62 |
There are various types of dividends Analog Devices can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Analog shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Analog Devices directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Analog pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Analog Devices by the value of the dividends paid out.
Analog Devices Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Analog Devices does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 506 M | |
| Quarterly Earnings Growth Y O Y | -0.505 | |
| Forward Price Earnings | 31.4465 |
Analog Devices Current Valuation Indicators
Valuation refers to the process of determining the present value of Analog Devices and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Analog we look at many different elements of the entity such as Analog's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Analog Devices' valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Analog Devices' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Analog Devices, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Analog Devices' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Analog Devices' worth.When determining whether Analog Devices offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Analog Devices' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Analog Devices Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Analog Devices Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Analog Devices. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in unemployment. For more detail on how to invest in Analog Stock please use our How to Invest in Analog Devices guide.Note that the Analog Devices information on this page should be used as a complementary analysis to other Analog Devices' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Complementary Tools for Analog Stock analysis
When running Analog Devices' price analysis, check to measure Analog Devices' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Analog Devices is operating at the current time. Most of Analog Devices' value examination focuses on studying past and present price action to predict the probability of Analog Devices' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Analog Devices' price. Additionally, you may evaluate how the addition of Analog Devices to your portfolios can decrease your overall portfolio volatility.
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Is Analog Devices' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Analog Devices. If investors know Analog will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Analog Devices listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.51) | Dividend Share 3.5 | Earnings Share 5.6 | Revenue Per Share 23.165 | Quarterly Revenue Growth (0.23) |
The market value of Analog Devices is measured differently than its book value, which is the value of Analog that is recorded on the company's balance sheet. Investors also form their own opinion of Analog Devices' value that differs from its market value or its book value, called intrinsic value, which is Analog Devices' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Analog Devices' market value can be influenced by many factors that don't directly affect Analog Devices' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Analog Devices' value and its price as these two are different measures arrived at by different means. Investors typically determine if Analog Devices is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Analog Devices' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.