Analog Devices Inc. (NASDAQ:ADI)

Price to Earnings (P/E) Ratio

The Price to Earnings ratio exhibited notable volatility over the analyzed periods. Initially, there was a significant increase from 41.43 to 68.31, followed by a sharp decline to 31.21 and continuing downward to 27.14. Subsequently, the ratio surged again to 66.48 before falling to 54.43. This pattern indicates fluctuating market expectations about future earnings, with periods of optimism followed by moderation.

Price to Operating Profit (P/OP) Ratio

Similar to the P/E ratio, the Price to Operating Profit ratio demonstrated substantial variation. Starting at 33.76, it rose substantially to 56.12, then sharply decreased to 26.16 and further to 23.53. A subsequent rebound occurred, reaching 53.48, followed by a decline to 42.08. This trend reflects changing assessment of the company’s operational profitability value by investors.

Price to Sales (P/S) Ratio

The Price to Sales ratio showed less extreme fluctuations but still varied notably. It increased from 9.03 to 12.98, then decreased to 7.14 and stabilized slightly at 7.31. Afterwards, it climbed again to 11.53 and slightly decreased to 11.20. This indicates shifts in investor valuation relative to the company’s revenue, with a general trend of alternating between higher and lower valuation periods.

Price to Book Value (P/BV) Ratio

The Price to Book Value ratio experienced an initial decline from 4.22 to 2.5 and 2.35, suggesting a decrease in market valuation relative to net asset value. Subsequently, it began to rise from 2.53 to 3.09 and then to 3.65, indicating improving investor confidence in the company's asset base over the later periods.

The share price exhibited an overall upward trajectory over the analyzed period, increasing from $136.89 to $252.02. This represents a significant appreciation in market value, with some fluctuations observed, particularly a modest decline between the second and third periods before resuming an upward trend.

Earnings per share (EPS)

EPS showed variability throughout the timeline, with a notable dip from 3.3 to 2.65 in the second period, followed by a strong recovery peaking at 6.68 in the fourth period. Subsequently, there was a decline to 3.29 in the fifth period, and a moderate improvement to 4.63 in the final period. This pattern indicates periods of both performance challenges and recovery in profitability on a per-share basis.

Price-to-Earnings (P/E) ratio

The P/E ratio demonstrated significant volatility, starting at 41.43, rising sharply to 68.31, then decreasing substantially to 31.21 and further to 27.14. The ratio then increased again to 66.48 before declining to 54.43. These fluctuations suggest changing market expectations regarding future earnings growth and varying investor sentiment towards the valuation of the company's stock relative to its earnings.

Overall, the financial metrics indicate a company experiencing dynamic market valuation influenced by fluctuating earnings performance. The notable variability in EPS appears to drive the substantial oscillations in the P/E ratio, while the consistent increase in share price reflects investor confidence or favorable market conditions over the longer term despite interim earnings volatility.

Share Price

The share price exhibited an overall upward trend over the six-year period. Starting at $136.89, it increased steadily to reach $252.02 by the final year. Noteworthy increments occurred particularly between 2023 and 2025, with the price rising from $181.25 to $252.02, indicating growing investor confidence or positive market sentiment during these years.

Operating Profit Per Share

The operating profit per share demonstrated fluctuation throughout the period. It began at $4.05, dipped to a low of $3.22 in 2021, then peaked significantly at $7.70 in 2023. Subsequently, it declined to $4.10 in 2024 before rising again to $5.99 in 2025. This volatility suggests varying operational efficiencies or earnings performance impacted by external or internal factors.

Price to Operating Profit Ratio (P/OP)

The price-to-operating-profit ratio showed considerable variability, inversely related in part to the changes in operating profit per share. The ratio was highest at 56.12 in 2021 when operating profit was lowest, indicating a premium valuation or potentially overvaluation at that time. It fell to a low of 23.53 in 2023 coinciding with the peak operating profit, reflecting improved earnings relative to the share price. However, the ratio climbed again to 53.48 in 2024 and moderated to 42.08 in 2025, suggesting fluctuating market perceptions regarding profitability sustainability.

Share Price Trend

The share price exhibited a generally upward trajectory over the analyzed period. Beginning at $136.89, it rose significantly to $180.79 by the following year. After a slight decline to $168.43, it increased again, reaching $181.25. The price continued its ascent, achieving $219.05 and eventually $252.02, indicating strong overall growth with minor fluctuations.

Sales per Share Trend

Sales per share showed variability throughout the periods. Starting at $15.16, there was a decrease to $13.93, then a notable increase to $23.59 and $24.80 over the subsequent years. This was followed by a decline to $18.99, and a subsequent recovery to $22.51. The data reflects alternating phases of growth and contraction, suggesting varying operational performance or market conditions affecting sales revenue.

Price to Sales (P/S) Ratio Trend

The price-to-sales ratio fluctuated considerably over the years. It rose from 9.03 to a peak of 12.98, before sharply falling to 7.14 and marginally increasing to 7.31. Subsequently, it climbed again to 11.53, before slightly declining to 11.20. These oscillations indicate changing market valuations relative to sales, potentially reflecting shifting investor sentiment or varying profit margins.

Overall Insights

The data depicts a positive long-term trend in share price, underscored by some volatility. Sales per share experienced periods of both growth and decline, which may be aligned with operational or market dynamics. The P/S ratio's fluctuations suggest that valuations did not move uniformly with sales, indicating the influence of external factors such as investor expectations, earnings outlook, or sector-wide trends. Together, these indicators provide a nuanced picture of financial performance and market perception over the analyzed timeframe.

Share Price

The share price exhibited an overall upward trajectory over the years analyzed. Beginning at $136.89 in late 2020, it increased significantly to $180.79 in 2021. Despite a slight decline to $168.43 in 2022, the price rebounded to $181.25 in 2023. The upward momentum continued strongly into 2024 and 2025, reaching $219.05 and $252.02 respectively. This indicates positive market sentiment and potentially strong company performance or growth prospects.

Book Value Per Share (BVPS)

Book value per share showed a marked increase from $32.47 in 2020 to a peak of $72.32 in 2021, suggesting substantial accumulation of net assets or retained earnings in that period. However, from 2021 onwards through 2025, BVPS remained relatively stable, fluctuating slightly but trending downward incrementally to $69.06 by 2025. This stability suggests consistent asset base but limited growth in equity per share after the initial increase.

Price-to-Book Value Ratio (P/BV)

The P/BV ratio decreased notably from 4.22 in 2020 to 2.5 in 2021 and further declined to the lowest point of 2.35 in 2022. This decline reflects the sharp rise in book value per share relative to the share price during that timeframe, indicating the stock became more attractively valued in terms of book equity. Post-2022, the ratio reversed the trend, increasing gradually to 3.65 by 2025. This rise is driven by the stronger increase in share price relative to book value per share, indicating increased investor willingness to pay a premium over book value, possibly reflecting higher growth expectations or improved market conditions.

Overall Analysis

The data reveals a period of initial asset base strengthening and market valuation compression through 2022, followed by renewed share price growth and rising valuation multiples through 2025. The diverging trends between share price and book value per share in later years suggest that investor confidence and market value outpaced fundamental asset growth. This could indicate market anticipation of future earnings growth, innovation, or strategic positioning not yet fully reflected in book value.