ADI PEG Ratio Analysis
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 percentileADI
0.49x
Sector Median
0.78x
Sector Avg
2.46x
Prior Period
0.57x(May 2026)
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).
Learn More About PEG Ratio
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.
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0.49x
Sector Median
0.78x
Sector Avg
2.46x
How ADI's PEG Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.