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 43th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 16.17%. 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 88.93% of positive cash flow stocks in the Technology.
The business' balance sheet suggests that 12% of the company's capital is sourced from debt; this is greater than just 24.22% 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 39.92% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
PAYC, TEL, MTSI, TTGT, and VMW can be thought of as valuation peers to ADI, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
NORWOOD, Mass.--(BUSINESS WIRE)--Analog Devices, Inc. (Nasdaq: ADI) today announced that the Company’s President and Chief Executive Officer, Vincent Roche, will speak at Bernstein’s 36th Annual Strategic Decisions Conference to be held virtually on Wednesday, May 27, 2020, at 11:00 a.m. Eastern time. The webcast for the conference may be accessed live via the Investor Relations section of Analog Devices’ website at investor.analog.com. An archived replay will also be available shortly followin