Using the industry peer median P/E multiple (trailing + forward), Analog Devices, Inc. (ADI) has a fair value of $209.96 based on 7 comparable companies in the Semiconductors industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Analog Devices, Inc.ADI | 156,791 | 69.2x | 49.8x |
| KLA CorporationKLAC | 192,316 | 48.2x | 40.0x |
| Texas Instruments IncorporatedTXN | 177,859 | 35.8x | 30.4x |
| Dell Technologies Inc.DELL | 119,398 | 20.9x | 17.7x |
| Synopsys, Inc.SNPS | 77,468 | 50.3x | 31.5x |
| Cadence Design Systems, Inc.CDNS | 76,822 | 69.4x | 39.9x |
| Monolithic Power Systems, Inc.MPWR | 53,106 | 84.8x | 50.3x |
| NXP Semiconductors N.V.NXPI | 50,263 | 25.0x | 15.2x |
| Industry Median | 48.2x | 31.5x | |
| (*) Profit after tax | 2,267 | 3,150 | |
| Equity Value | 109,274 | 99,307 | |
| (/) Outstanding shares | 497 | 497 | |
| Fair Price | $220 | $200 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.