Analog Devices Inc. (NASDAQ:ADI)

The analysis of the company's valuation ratios over multiple quarters reveals distinct trends and fluctuations across the observed periods.

Price to Earnings (P/E) Ratio

The P/E ratio exhibits a rising trend starting in early 2020, increasing from around 31 to peak levels exceeding 68 in late 2021. After this peak, there is a noticeable decline throughout 2022 and early 2023, reaching values near 23.5. Subsequently, the ratio climbs again towards the end of the dataset in 2024 and 2025, fluctuating between the mid-50s and mid-70s. This indicates periods of higher investor expectations of future earnings during the peaks, followed by intervals of more moderate valuation.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio mirrors the overall pattern seen in the P/E ratio, with an initial increase from roughly 25 in early 2020 to over 56 in late 2021. It then declines to about 20 in mid-2023, followed by a rebound toward the mid-60s by the later quarters. This movement suggests varying market optimism linked to the company’s operating profit performance and changing sentiment over time.

Price to Sales (P/S) Ratio

The P/S ratio also shows growth from around 7 in early 2020 to nearly 13 by late 2021, indicating increased valuation relative to sales. A correction phase follows, with declining ratios to approximately 6.75 in mid-2023. The ratio then begins to rise again, reaching values around 11 to 12.8 towards the end of the data range. This ebb and flow align with shifts in sales growth expectations and market valuation trends.

Price to Book Value (P/BV) Ratio

The P/BV ratio presents a more complex pattern. Initially, it increases gradually from 3.4 in early 2019 to peaks around 4.98 in the first half of 2021, indicating growing market value relative to book equity. A sharp decrease occurs late in 2021, dropping to about 2.24 by mid-2022. Afterwards, the ratio fluctuates moderately between roughly 2.35 and 3.53 through 2024 and 2025, showing periods of relative undervaluation followed by modest recovery.

Overall, the valuation multiples demonstrate cycles of investor optimism and subsequent corrections over the examined timespan. The peaks in late 2021 across all ratios correspond to heightened market expectations, which are tempered by the declines in 2022 and 2023. The partial recoveries toward the dataset’s end suggest renewed positive sentiment or improved financial performance prospects. Among the ratios, the P/E and P/OP exhibit closely correlated movements, reflecting earnings and operating profit expectations, while the P/BV ratio's distinct drop and slower recovery underline shifts in underlying book value perceptions.

Share Price Trend

The share price demonstrated overall growth with fluctuations from February 2019 to August 2025. Initially, it oscillated around the 100 to 130 US$ range until early 2021, after which a notable upward trajectory was observed, peaking near 240 US$ in May 2024. Despite some intermittent declines, particularly from mid-2024 to early 2025, the price remained significantly higher than the initial levels, indicating increased market valuation over the period analyzed.

Earnings Per Share (EPS) Development

EPS data is available from February 2020 onwards and exhibits considerable variability over the quarters. Early EPS values hovered between about 3.0 and 4.6 US$, followed by a sharp dip in the first quarter of 2022, dipping to around 2.45. From that low point, EPS increased substantially, peaking at 7.53 in October 2022. Subsequent quarters show a declining trend, with EPS lowering to between approximately 3.1 and 4.0 towards mid-2025. This pattern suggests periods of improved profitability followed by a weakening margin or earnings pressure more recently.

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

The P/E ratio started at approximately 31 in early 2020 and climbed steadily to peak values above 68 in late 2021 and mid-2024, reflecting heightened investor expectations relative to earnings during those intervals. The P/E ratio trends mirror changes in both share price and EPS; notably, P/E spikes coincided with periods of declining EPS or accelerated share price increases. The ratio declined to around the low 20s to 30s between 2022 and mid-2023, suggesting a temporary moderation in market optimism or improved earnings relative to price. However, late 2024 to mid-2025 data once again show elevated P/E ratios above 55, implying renewed market enthusiasm or potentially elevated share price relative to earnings at that time.

Overall Insights

The data reveals a dynamic financial performance characterized by rising market valuation with episodic earnings volatility. The high P/E ratios at multiple points may indicate market anticipation of future growth or reflect periods of earnings contraction. The recent moderation in EPS coupled with sustained high share prices in 2024 and 2025 suggests potential market confidence in long-term prospects despite near-term earnings softness. Continuous monitoring of the relationship between earnings and price levels will be essential to assess valuation sustainability.

The data reveals notable fluctuations and trends in the financial metrics over the observed periods.

Share Price

The share price demonstrates an overall upward trend with several periods of volatility. Initially, the price moved modestly from approximately $101 to $136 between early 2019 and late 2020. From early 2021 onward, the share price experienced more pronounced increases, reaching a peak around $240 in mid-2024 before slightly declining yet remaining elevated above $210 toward mid-2025. This indicates a generally positive market valuation over time despite some intermittent declines.

Operating Profit per Share (OP per Share)

Operating profit per share data begins from early 2020, showing values generally within the range of $3.7 to $8.6. It starts at 4.64 in early 2020, experiences fluctuations, and peaks at 8.61 in late 2022. After this peak, a decreasing trend is observed until early 2024, where values hover around 3.9 to 5.2. This suggests variability in operational profitability, with a strong performance period around late 2022 followed by a moderation.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio displays significant volatility and elevated levels, implying varied market expectations relative to earnings. Early 2020 values ranged from about 24.74 to approximately 34.9, indicating moderate valuation multiples. From early 2021, the ratio spikes dramatically, reaching as high as 61.84 by early 2025, which may reflect heightened market optimism or anticipated growth despite operating profitability fluctuations. Short-term declines in OP per share coincide with increased P/OP ratios, demonstrating disproportionate share price valuation relative to operating profitability at times.

In summary, the share price has increased substantially over the periods with some volatility, while operating profit per share shows a peak and subsequent decline pattern. The price to operating profit ratio has risen markedly, reflecting a growing premium placed on the company's earnings, likely indicating strong market confidence or growth expectations despite some variability in profitability.

Share Price Trend

The share price exhibited an overall upward trend from early 2019 to mid-2025, rising from approximately $106.82 in February 2019 to a peak of $244.87 in August 2025. The price showed consistent growth with some fluctuations, including notable increases around October 2020 at $136.89, January 2021 at $159.75, and February 2024 at $193.72. There were minor declines in selected quarters such as May 2020, April 2022, and May 2024, but the general trajectory remained positive throughout the period analyzed.

Sales Per Share Dynamics

Sales per share data, available from August 2019 onwards, displayed a gradual increase during the initial years with fluctuations. Starting around $16.27 in August 2019, the figure rose steadily, reaching a peak of $25.76 by October 2023. Thereafter, it declined to $18.83 by August 2024 but showed signs of recovery to $21.11 in August 2025. This indicates variable sales performance with a strong growth phase occurring from late 2020 through late 2023, followed by a decrease and partial rebound in subsequent quarters.

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

The P/S ratio also fluctuated notably throughout the periods observed. From a low of around 7.06 in August 2019, it climbed to a high of 12.98 in January 2022, indicating increased valuation relative to sales at that point. After this peak, the ratio declined to approximately 6.75 by January 2024, suggesting a reduction in valuation multiples. However, it resumed an upward movement reaching 11.6 by August 2025. These variations may reflect changes in market sentiment, company growth prospects, or earnings expectations relative to sales performance.

Interrelationship Between Metrics

While the share price generally climbed over the examined period, the P/S ratio's volatility suggests that market valuation relative to sales was not steady. The rise in share price coupled with the increasing P/S ratio up to early 2022 implies elevated investor confidence or expectations. Subsequent declines in the P/S ratio despite a rising share price from 2023 onward could indicate strong sales growth supporting higher prices, or alternatively, adjustments in market valuation norms. The fluctuating sales per share combined with changing P/S ratios highlight periods of both growth and correction in company valuation.

Overall Summary

The analyzed financial data reflect steady growth in share price with corresponding increases in sales per share over several years, punctuated by periods of volatility and decline. The P/S ratio's variability emphasizes shifts in market valuation relative to revenue generation, suggesting that investor sentiment and company fundamentals experienced both positive and corrective phases. The data collectively portray a company with expanding sales metrics and rising market capitalization, alongside fluctuating valuation multiples that warrant ongoing monitoring in the context of broader market conditions and company performance.

The financial data reveals several notable trends regarding the share price, book value per share (BVPS), and the price-to-book value (P/BV) ratio over the observed periods.

Share Price

The share price shows a general upward trajectory from February 2019 to August 2025, starting at $106.82 and increasing to $244.87. This growth, however, includes periods of fluctuation. For instance, after reaching a peak around $180.79 in October 2021, the price declined slightly and then resumed growth, reaching its highest at $244.87 in August 2025. These variations indicate volatility but the overall trend suggests growing market confidence or improving company valuation over time.

Book Value Per Share (BVPS)

BVPS remained relatively stable in the range of approximately $31.46 to $33.31 from early 2019 up to July 2021. There is a significant step change in October 2021, where BVPS rises sharply to around $72.32, and remains mostly stable thereafter, slightly declining to $69.29 by August 2025. This sudden increase suggests a major event such as a restatement, stock restructuring, or acquisition, leading to a higher book value per share baseline.

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

Initially, the P/BV ratio fluctuated between 3.19 and 4.98, reflecting changes in market price relative to book value, with a peak near 4.98 in July 2021. Post the October 2021 adjustment in BVPS, the P/BV ratio dropped sharply to approximately 2.5, reflecting the substantial increase in book value denominator. Subsequently, it remained in the 2.24 to 3.53 range, indicating a more moderate market valuation relative to book value. Notably, from early 2024 forward, the P/BV ratio displays a gradual increase, peaking near 3.53 in August 2025, suggesting renewed investor optimism or improved market sentiment on the company’s intrinsic worth.

In summary, the data reflects a steady increase in market value (share price) with a distinct structural change in the book value of equity per share occurring in late 2021. The P/BV ratio's sharp decline following this change indicates market adjustment to the new book value level, with subsequent gradual valuation growth aligned with rising share prices. This pattern suggests improved underlying financial strength balanced by fluctuating investor perception of value over the period.