ADI

Analog Devices, Inc.Technology / SemiconductorsINTACT

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 and microwave ICs to support cellular infrastructure; and micro-electro-mechanical systems technology solutions, including accelerometers used to sense acceleration, gyroscopes for sense rotation, inertial measurement units to sense multiple degrees of freedom, and broadband switches for radio and instrument systems, as well as isolators. In addition, it provides digital signal processing and system products for numeric calculations. The company serves clients in the industrial, automotive, consumer, instrumentation, aerospace, defense and healthcare, and communications markets through a direct sales force, third-party distributors, and independent sales representatives, as well as online. The company was incorporated in 1965 and is headquartered in Wilmington, Massachusetts.

Share Price
$378.78
52W: $223.47 - $445.91
DCF Fair Value
$259.21
-46.1% Premium
P/E (TTM)
45x
ROIC
29.6%
Operating Margin
39.5%
FCF Yield
2.3%
Debt / Equity
0.27x
Piotroski Score
8/9
Altman Z-Score
2.96
Market Cap
$183.5B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($259.21)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)
()
Period Range
$ - $
DCF Fair Value
$259.21
MOS Buy Target (-25%)
$194.41
Valuation Overlays:

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price
$378.78
DCF Fair Value
$258.85
-46.3% Premium
$4,147M
$100M$4,147M (Reported)$50,000M
18.0%
-5%10% (Target)35%
4.5%
0%5%20%
9.0%
6%9% (Standard)15% (High Risk)
2.5%
1% (GDP Floor)2.5% (Inflation)4.0%
$6,900M
-$100B CashBalance Sheet+$150B Debt
10-Yr PV of Cash Flows
$53.7B
PV of Terminal Value
$78.8B
Implied Enterprise Value
$132.4B
Implied Equity Value
$125.5B
YearYr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9Yr 10
Projected FCF ($M)$4,893$5,774$6,814$8,040$9,487$9,914$10,360$10,827$11,314$11,823
Present Value (PV)$4,489$4,860$5,261$5,696$6,166$5,912$5,668$5,434$5,209$4,994

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-230.7% Premium
$114.53

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $8.42BVPS: $69.24
Revised Graham Formula-28.8% Premium
$294.07

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Buffett Owner Earnings2.1% Yield
$8.12 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $3.9BYield: 2.1%

Reverse DCF: Market Growth Expectation

HIGH BARRIER
16.2% CAGR (Next 10 Yrs)

At the current price of $378.78, the market is assuming the business will compound Free Cash Flow at 16.2% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict
ℹ Fair expectations: Requires steady execution.
Autonomous Thesis Underwriting

Surveil ADI with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Analog Devices, Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 39.5% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

Frequently Asked Questions: Analog Devices, Inc. (ADI) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Analog Devices, Inc..

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Analog Devices, Inc. has an estimated DCF intrinsic fair value of $259.21 per share compared to its current market price of $378.78. This represents an estimated 46.1% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $114.53.

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