Is Analog Devices, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Analog Devices, Inc. has moved from attractive to very expensive, indicating a shift towards overvaluation. The company is currently considered overvalued based on its high P/E ratio of 58, a price-to-book value of 3.15, and an EV to EBITDA of 26.33. In comparison, NVIDIA Corp., which is rated attractive, has a P/E of 47.72, while QUALCOMM, Inc. stands out as very attractive with a P/E of 14.62.
Despite the recent stock performance, where Analog Devices saw a 7.79% return over the past week compared to the S&P 500's 1.70%, its longer-term returns reveal a concerning trend. Over the past year, Analog Devices has returned 6.83%, lagging behind the S&P 500's 14.08%, and over the past decade, it has significantly underperformed with a return of 96.43% compared to the S&P 500's 227.77%. This combination of high valuation ratios and underwhelming long-term performance suggests that the stock may not be a favorable investment at its current price.