Analog Devices engages in the design, manufacture, and marketing of analog, mixed-signal, and digital signal processing integrated circuits (ICs) for use in industrial, automotive, consumer, and communication markets worldwide. The company was founded in 1965 and is based in Norwood, Massachusetts.
ADI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for ADI, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Analog Devices Inc ranked in the 34th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for ADI, they are:
As a business, ADI is generating more cash flow than 88.59% of positive cash flow stocks in the Technology.
The business' balance sheet suggests that 8% of the company's capital is sourced from debt; this is greater than only 22.83% of the free cash flow producing stocks we're observing.
ADI's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 38.43% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ADI, try EVOL, ALRM, MEI, NOVT, and RMNI.
WILMINGTON, Mass.--(BUSINESS WIRE)--Analog Devices, Inc. (Nasdaq: ADI) today announced that the Company’s Chief Financial Officer, Prashanth Mahendra-Rajah, will speak at the Goldman Sachs Technology & Internet Conference as well as J.P. Morgan’s 19th Annual Tech/Auto Forum, both to be held on Tuesday, January 12, 2021, at 9:40 a.m. and 1:30 p.m. Eastern time, respectively. The webcasts for these conferences may be accessed live via the Investor Relations section of Analog Devices’ website
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