Analog Devices Inc. (NASDAQ:ADI)

Price to Earnings Ratio (P/E)

The P/E ratio exhibited significant volatility over the observed periods. Starting at 41.93, it declined to a low near 23.57 in mid-2023, reflecting a period of reduced market valuation relative to earnings. Subsequently, the ratio increased sharply, peaking above 76 by late 2024, suggesting heightened investor expectations or a potential re-rating of earnings. Following that peak, the ratio moderated slightly but remained elevated, indicating sustained market confidence or valuation expansion despite some fluctuation.

Price to Operating Profit Ratio (P/OP)

This ratio largely mirrored the P/E trend, beginning close to 34.9 and decreasing steadily to around 20.41 in mid-2023. Afterward, it underwent a pronounced increase, reaching over 61 in late 2024. The pattern suggests a period of rising valuation multiples on operating profit, coinciding with increased market optimism or growth expectations. The ratio declined slightly in 2025 but stayed well above earlier lows, indicating continued premium valuation relative to operating profit.

Price to Sales Ratio (P/S)

The P/S ratio demonstrated moderate fluctuations. It began near 10.06 and experienced a downward trend until mid-2023, touching approximately 6.75. This decline may indicate either sales growth outpacing price increases or a lowering of price multiples relative to sales. Post-mid-2023, the ratio rose steadily, reaching a peak of about 12.84 in late 2024, reflecting an improved valuation environment or stronger market sentiment towards revenue generation. Toward 2025, the ratio stabilized around the 11 range, suggesting maintained investor confidence in sales performance.

Price to Book Value Ratio (P/BV)

The P/BV ratio showed a distinct pattern, initially high at 4.88 and dropping sharply to about 2.24 by mid-2022. It then experienced gradual recovery, rising to a peak of approximately 3.65 by late 2025. This trend indicates a period of reduced market valuation relative to book value, followed by renewed investor confidence or improvements in net asset value perception. The sustained increase after the nadir suggests positive developments in asset quality or market reassessment of the company's book value.

Share Price Trend

The share price exhibited notable fluctuations over the observed period. Initially, it rose from approximately $160 to a peak near $181 by late 2021. Subsequently, the price experienced some volatility, with declines and recoveries, notably reaching above $240 in mid-2024 and again in early 2025. Despite short-term dips, the general trajectory indicates a substantial increase when comparing early 2021 to late 2025 figures.

Earnings Per Share (EPS) Pattern

The EPS showed considerable variability throughout the time frame. Early on, EPS values increased from 3.81 to a peak of 5.4 by late 2021, followed by a strong rise leading to values over 7.5 in mid-2023. However, a downward trend was evident after this peak, with EPS falling to around 3.15 by late 2024 before slightly improving towards 4.63 by late 2025. This indicates periods of both robust profitability and contraction.

Price-to-Earnings (P/E) Ratio Analysis

The P/E ratio demonstrated high volatility, moving inversely in many instances relative to EPS. Early ratios ranged between approximately 36 to 68, peaking notably when EPS was low, such as in late 2021 and mid-2024, indicating heightened market expectations or price overvaluation relative to earnings at those points. When EPS peaked, P/E ratios tended to decline to the mid-20s range, reflecting a more balanced valuation. Towards the end of the period, elevated P/E ratios reappeared despite moderate earnings improvements, suggesting increased market optimism or price momentum.

Relationship Insights

The interaction between share price, EPS, and P/E ratio suggests the market experienced phases of optimism and caution. Share price increases were sometimes accompanied by rising EPS, supporting fundamental growth, while at other times price growth outpaced earnings, leading to inflated P/E ratios. The notable peaks and troughs in EPS combined with corresponding P/E fluctuations highlight underlying earnings volatility and changing investor sentiment across the quarters analyzed.

The analysis of the quarterly financial data reveals several notable trends and fluctuations across the reported periods.

Share Price

The share price exhibited variability throughout the timeline. Initially, it rose from approximately $159.75 to a peak around $180.79 within the first year, before experiencing a moderate decline to about $159.92 by April 2022. Subsequently, a general upward trajectory ensued, reaching a notable peak of $252.02 by November 2025. This long-term increase indicates a positive market valuation trend tapering with intermittent corrections.

Operating Profit per Share (OPPS)

Operating profit per share displayed significant volatility. Early values ranged between $4.58 and $5.58, followed by a decline to near $3.04. From late 2021 through early 2023, OPPS ascended sharply, hitting a maximum of $8.61 in July 2023. This was succeeded by a gradual decrease through late 2024 and into 2025, with values stabilizing around the $4.49 to $5.99 range towards the end. The peak performance in mid-2023 suggests a period of enhanced operational efficiency or profitability that was not fully sustained in subsequent quarters.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio reflects notable fluctuations in valuation relative to profit. After starting at roughly 34.9, the ratio declined to around 26.16 by late 2022, concurrent with rising OPPS and fluctuating share prices. The ratio reached its lowest values near 20.41 in April 2023, corresponding to the peak OPPS, indicating potentially undervalued share price relative to earnings at that time. However, a sharp increase to levels above 50 occurred in the first half of 2024, peaking near 61.84, suggesting the market valuation outpaced profit growth or that operating profit declined. In the latter periods, the ratio stabilized somewhat in the 40s range but remained elevated compared to the earlier timeline, possibly reflecting increased market expectations or risk perceptions.

Overall, the data indicate a complex relationship between share price and operating profitability. Periods of high operating profit per share tend to coincide with lower P/OP ratios, implying undervaluation or strong earnings relative to price, whereas periods of declining earnings or market optimism correspond with elevated P/OP ratios. The share price trend is generally upward over the long term, albeit with episodes of correction and volatility consistent with fluctuations in operating profit and market sentiment.

Share Price Trend

The share price initially showed fluctuations within the range of approximately $153 to $181 from early 2021 through the end of 2022. Starting in early 2023, there was a noticeable upward movement, reaching a peak near $240 by mid-2024. Despite some intermittent dips, the share price maintained a generally strong upward trajectory, finishing above $250 by late 2025. This suggests increasing investor confidence and valuation growth over the observed period.

Sales Per Share Trend

Sales per share displayed a mixed pattern with initial moderate growth from about $15.88 in early 2021 to peaks over $25 in late 2022 and early 2023. However, following this peak, there was a gradual decline through the subsequent quarters, falling below $20 by late 2024. Towards the end of the period observed, sales per share began to recover slightly, rising above $22 by late 2025. This pattern indicates some volatility in revenue generation per share, with a notable dip in the mid-term and partial recovery thereafter.

Price-to-Sales (P/S) Ratio Trend

The P/S ratio fluctuated significantly. It started relatively high above 10 in early 2021 but decreased steadily to below 8 by late 2022 amidst rising sales per share and somewhat stable share prices. From early 2023 onward, the P/S ratio climbed sharply, reaching levels above 12 by late 2024, before slightly moderating while remaining elevated above 11 through late 2025. This increase in P/S ratio during the period when sales per share declined suggests that the share price growth outpaced sales growth, reflecting elevated market valuation multiples.

Overall Insights

The financial data indicates strong growth and increased market valuation of the company’s shares over the period despite fluctuations and a mid-term dip in sales per share. The rising P/S ratio towards the latter part of the timeline highlights stronger investor enthusiasm, possibly driven by prospects other than immediate revenue growth. The partial recovery in sales per share together with sustained share price gains suggests improving operational performance or market conditions. The disconnect between share price movements and sales per share in some intervals warrants further analysis to evaluate the drivers behind valuation changes.

Share Price Trend

The share price shows notable volatility with an overall upward trajectory from January 30, 2021, to November 1, 2025. Initial prices hovered around the 150-180 US$ range in 2021, followed by fluctuations throughout 2022 and early 2023. A significant upward surge occurs from early 2024, peaking at 252.02 US$ in November 2025. This indicates strong market confidence and growth in valuation over the observed period.

Book Value Per Share (BVPS) Pattern

The book value per share exhibits relative stability with values mostly in the low 30s to low 70s range. There is a notable jump from approximately 33 US$ in mid 2021 to over 70 US$ starting in the fourth quarter of 2021, after which it remains quite stable, fluctuating mildly around 70-72 US$. Towards late 2024 and into 2025, a slight declining tendency in BVPS is observed, dropping from around 71.7 to 69.06 US$ by November 2025.

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

The P/BV ratio shows a sharp decline in the middle of 2021, dropping from nearly 5 to approximately 2.5 by the end of that year. It then stabilizes around the 2.2 to 2.7 range through 2022 and early 2023. Starting in early 2024, the P/BV ratio rises significantly, reaching levels above 3.5 by the end of the data period in 2025. This increase in the P/BV ratio despite a relatively stable or slightly declining book value reflects heightened investor expectations or increasing market valuation relative to the book value.

Summary of Financial Position Changes

Overall, the data suggest that while the book value per share mostly stabilizes after an initial increase, the market perceives increasing value in the company as evidenced by the rising share price and P/BV ratio in the latter part of the timeframe. The divergence between stable BVPS and rising share price and P/BV could indicate optimism about future earnings, growth prospects, or intangible value not fully captured in the book value.