ADINEUTRAL

ADI PEG Ratio Analysis

0.49x

Higher than 35% of Technology sector peers

Updated 2477h ago·SEC filings & market data

Key Takeaway

With a PEG ratio of 0.49x, Analog Devices is trading at a price relative to its earnings growth that is less than 1 — meaning the stock’s price-to-earnings multiple is lower than its expected earnings growth rate, often seen as a sign of undervaluation.

Sector Performance

35th percentile

ADI

0.49x

Sector Median

0.78x

Sector Avg

2.46x

Prior Period

0.57x(May 2026)

↑ Improving
📊

Deep Analysis

With a PEG ratio of 0.49x, Analog Devices is trading at a price relative to its earnings growth that is less than 1 — meaning the stock’s price-to-earnings multiple is lower than its expected earnings growth rate, often seen as a sign of undervaluation.

Among Technology sector peers, that ratio sits below the sector median of 0.69x, placing Analog Devices in the 38th percentile, so it is cheaper on a growth-adjusted basis than most of its competitors. Trend data is not available: year-over-year and quarter-over-quarter changes are both listed as N/A, and there is no history for the last eight quarters. Because the level is low but the trend cannot be assessed, the single data point suggests a potential valuation opportunity, but without directionality the risk of a value trap remains uncertain. This metric supports the overall NEUTRAL verdict — the low PEG indicates possible upside, yet the lack of trend data prevents a stronger bullish or bearish call.

Frequently Asked Questions

What does the PEG Ratio tell investors about ADI?

The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.

How is the PEG Ratio calculated?

PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.

How does ADI's PEG Ratio compare to its sector?

ADI's PEG Ratio of 0.49x compares to a Technology sector median of 0.78x, placing it in the 35th percentile.

Who are ADI's closest peers by PEG Ratio?

The closest Technology peers by PEG Ratio include: MSFT (0.85x), AVGO (0.71x), CRM (0.64x), PLTR (0.60x), MRVL (0.59x).

The Formula

P/E Ratio / EPS Growth Rate

Why It Matters

The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.

Advertisement

Master ADI's Valuation

Get the complete institutional research report covering all fundamental and technical metrics.

View full ADI research report

Free account — no credit card

ADI

0.49x

Sector Median

0.78x

Sector Avg

2.46x

How ADI's PEG Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.