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 appears overvalued based on its high P/E ratio of 58, an EV to EBIT of 49.94, and a Price to Book Value of 3.15. In comparison to peers, NVIDIA Corp. has a more attractive P/E of 47.72, while Micron Technology, Inc. shows a significantly lower P/E of 25.58, highlighting Analog Devices' premium valuation.
Despite a strong recent performance with a 1-week return of 7.79% compared to the S&P 500's 1.70%, the longer-term returns show that Analog Devices has lagged behind the index over 1 year (6.83% vs. 14.08%) and 10 years (96.43% vs. 227.77%). This suggests that while the company may have had short-term gains, its overall valuation may not be justified in the context of its peers and market performance.