ADI PE Ratio 2026
Analog Devices Inc Price to Earnings Analysis
Current P/E Ratio
77.54
Stock Price
$355.79
EPS (TTM)
$4.57
Valuation
Overvalued
PE Ratio Breakdown
Trailing P/E (TTM)
77.54
Based on last 12 months earnings
Information Technology Industry Avg
20.00
ADI is 288% above industry
PEG Ratio
66.44
Potentially overvalued
What Does ADI P/E Ratio Mean?
Current Valuation
At a P/E ratio of 77.54, investors are paying $77.54 for every $1 of ADI's annual earnings. This high P/E suggests investors expect strong future earnings growth or that the stock is trading at a premium.
Industry Comparison
Compared to the Information Technology industry average P/E of 20, ADI is trading at a premium. This could be justified by superior growth, profitability, or competitive position.
PE Ratio Calculator
How P/E ratio changes with different stock prices:
At $284.63
P/E: 62.28
20% lower
At $320.21
P/E: 70.07
10% lower
At $391.37
P/E: 85.64
10% higher
At $426.95
P/E: 93.42
20% higher
Get Complete ADI Valuation Analysis
DCF model, comparable companies, and AI-powered insights
Frequently Asked Questions
What is ADI PE ratio?
ADI (Analog Devices Inc) has a price-to-earnings (P/E) ratio of 77.54. This means investors are paying $77.54 for every $1 of ADI's annual earnings. The P/E ratio is a key valuation metric used to assess whether a stock is overvalued or undervalued relative to its earnings.
What is a good PE ratio?
A "good" P/E ratio depends on the industry and growth prospects. Generally, a P/E ratio between 15-25 is considered reasonable for mature companies. Growth stocks often trade at higher P/E ratios (30-50+) due to expected future earnings growth. Value stocks typically have lower P/E ratios (below 15). Compare ADI's P/E of 77.54 to its industry average and historical range.
Is ADI overvalued based on PE ratio?
ADI's P/E ratio of 77.54 is above the Information Technology industry average of approximately 20. This suggests the stock may be trading at a premium, though high P/E ratios can be justified by strong growth prospects.
What is the difference between forward and trailing PE ratio?
The trailing P/E ratio uses earnings from the past 12 months (historical data), while the forward P/E ratio uses projected earnings for the next 12 months (future estimates). ADI's trailing P/E is 77.54. Forward P/E is often more useful for growth companies as it reflects expected future performance.
How do you calculate PE ratio?
P/E ratio is calculated by dividing the stock price by earnings per share (EPS). Formula: P/E = Stock Price / EPS. For ADI, with a current price of $355.79 and EPS of $4.57, the P/E ratio is 77.85. A higher P/E means investors pay more per dollar of earnings.
What is PEG ratio and how does it relate to PE?
The PEG (Price/Earnings to Growth) ratio adjusts the P/E ratio for earnings growth. It's calculated as P/E / Earnings Growth Rate. ADI's PEG ratio is approximately 66.44. A PEG below 1.0 suggests the stock may be undervalued relative to its growth rate, while above 2.0 may indicate overvaluation.