Analog Devices Inc. (NASDAQ:ADI)

The analysis of the financial data reveals several notable trends in both share price and operating profit per share, along with their corresponding valuation ratio over a period spanning from 2005 to 2025.

Share Price

The share price demonstrated a fluctuating pattern initially, with a decline from $37.69 in 2005 to a low near $16.95 in 2008. Following this trough, the share price entered a general upward trajectory, increasing significantly and reaching a peak of $252.02 in 2025. This represents a substantial growth over the two decades, despite some periods of correction or temporary declines, such as noted around 2018 and 2022.

Operating Profit Per Share

Operating profit per share showed a less consistent trend relative to share price, with some volatility throughout the period. After starting at $1.41 in 2005, it increased steadily until 2008, then dropped sharply in 2009 to $0.98. From 2010 onwards, operating profit per share saw several oscillations, with peaks notably in 2018 ($5.08), 2019 ($4.64), and 2023 ($7.7). Nonetheless, there were declines following some peaks, as evidenced by a drop to $4.1 in 2024 before rising again slightly in 2025. The variations suggest fluctuations in operational efficiency or market conditions affecting profitability over time.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio exhibited significant variability over the time frame, indicating changes in market valuation relative to operating profit. Initial values were relatively moderate, descending to a low of 7.9 in 2008, reflecting possibly undervaluation or high profitability during a period of share price decline. In contrast, later years saw sharp increases in this ratio, peaking at 56.12 in 2021, signaling that the market price grew substantially relative to operating profits. In recent years toward 2024 and 2025, the ratio remained elevated but slightly lower than the peak, suggesting a premium valuation in the market.

In summary, the share price presented strong growth with intermittent volatility, while operating profit per share showed cyclical variations with periods of both growth and decline. The P/OP ratio's fluctuations point to changing investor sentiment and valuation multiples, with recent years marked by high market confidence relative to operational earnings. This overall pattern highlights the dynamic interaction between profitability, market pricing, and investor expectations across the observed period.