Analog Devices Inc. (NASDAQ:ADI)

Market (fair) value of Analog Devices

The market value shows a significant upward trend over the analyzed periods. Starting from approximately 56.6 billion US dollars, it nearly doubled to over 102 billion in the following year. Although there was a slight decline in the third period to about 91.6 billion, the market value recovered in subsequent years, reaching approximately 130.6 billion by the last recorded date. This indicates strong growth with some volatility, but an overall positive trajectory in market valuation.

Invested capital

Invested capital experienced a substantial increase early on, rising from roughly 18.2 billion to about 47 billion in the second period. After this peak, invested capital has gradually declined over the subsequent years to approximately 42.1 billion by the last period. This trend suggests initial scaling or investment expansion followed by a period of contraction or capital optimization.

Market value added (MVA)

The market value added, representing the difference between market value and invested capital, generally shows robust growth. Starting at 38.4 billion, it climbed to 55.5 billion before experiencing a dip to 46.6 billion. Subsequently, it increased steadily, reaching nearly 88.5 billion in the final period. This growth in MVA reflects enhanced value creation over time, suggesting that the market values the company’s investments positively despite fluctuations in invested capital.

The financial data reveals several noteworthy trends over the periods analyzed. The Market Value Added (MVA) shows a general increasing pattern with fluctuations, indicating changes in the company's market valuation relative to its invested capital. Initially, MVA increased significantly from approximately 38.4 billion US dollars in 2020 to a peak of about 55.5 billion US dollars in 2021, followed by a decline to roughly 46.6 billion US dollars in 2022. Afterward, the MVA resumed an upward trajectory, growing to about 52.0 billion in 2023, then sharply increasing to 72.0 billion in 2024, and further to approximately 88.5 billion in 2025.

The Invested Capital has experienced a contrasting trend, initially rising sharply from around 18.2 billion US dollars in 2020 to approximately 47.0 billion in 2021. Subsequently, it shows a gradual decline through the years, decreasing to about 45.0 billion in 2022, then continuously dropping to 44.2 billion, 43.5 billion, and finally 42.1 billion in 2025. This decline may indicate a reduction in the company's capital deployment or divestment activities over recent years.

The MVA spread ratio, which reflects the relative value the company generates above its invested capital, follows a pattern similar to the MVA. It starts at a very high level of around 210.9% in 2020, sharply decreases to approximately 117.9% in 2021, and further declines to near 103.6% in 2022. Then, it recovers somewhat, reaching about 117.8% in 2023, followed by a significant increase to around 165.5% in 2024 and climbing back close to the initial high at 210.4% in 2025. This ratio’s fluctuation suggests varying levels of efficiency and value creation in relation to the capital invested over time.

Overall, the company's market value and the value generated beyond invested capital experienced volatility but demonstrated recovery and growth in the latter periods. In contrast, the invested capital saw a peak early on, followed by a steady decline. The MVA spread ratio indicates periods of decreased value generation efficiency but concludes with a strong rebound, reflecting improved utilization or performance in the most recent periods.

Market Value Added (MVA)

The Market Value Added exhibited an overall increasing trend from 2020 to 2025. Starting at approximately 38.4 billion USD in 2020, it rose sharply to around 55.5 billion USD in 2021. There was a decline in 2022 to about 46.6 billion USD, followed by a moderate recovery in 2023 to roughly 52.0 billion USD. Significant growth occurred thereafter, with MVA reaching approximately 72.0 billion USD in 2024 and peaking near 88.5 billion USD in 2025. This pattern indicates strong market value creation with some volatility in the intermediate years.

Revenue

Revenue showed a generally positive trend with some fluctuations. From about 5.6 billion USD in 2020, revenue increased to approximately 7.3 billion USD in 2021, followed by a substantial jump to over 12.0 billion USD in 2022 and a slight addition to roughly 12.3 billion USD in 2023. However, there was a notable decrease to approximately 9.4 billion USD in 2024 before rising again to around 11.0 billion USD in 2025. The pattern suggests volatility but an overall growth trajectory with a notable dip in 2024.

MVA Margin

The MVA margin percentage displayed considerable variability over the period. It rose from about 685% in 2020 to around 758% in 2021, then declined sharply to 388% in 2022 and slightly recovered to 423% in 2023. A marked increase occurred in 2024, reaching approximately 764%, with further improvement to about 803% in 2025. These fluctuations imply changing efficiency or value creation relative to revenue, with significant improvements in the final years considered.

Summary

The financial data indicates robust growth in market value added and revenue over the six-year span, despite some periods of decline and volatility. In particular, the steep increases in MVA in 2024 and 2025 highlight enhanced value creation or investor confidence during these years. Revenue growth, while generally upward, shows a notable dip in 2024, suggesting potential challenges affecting sales or demand. The MVA margin mirrors these trends, reflecting efficiency changes in converting revenue into market value added. Overall, the data portrays a company with strong market valuation growth, but with some fluctuations in operational performance.