Analog Devices, Inc. (ADI): the growth the price implies
At 403.95 (close of 2026-10-15), the market is paying for free cash flow to grow +17.4% a year for 10 years, then 2.5% for ever, if you require 9% a year. Whether that is believable is the whole question, and it is yours.
What went in
| Share price, close of 2026-10-15 | 403.95 |
|---|---|
| Free cash flow, FY2025 | 4,278.7m |
| Diluted shares, FY2025 | 496.7m |
| Net debt (total debt 8,948.5m less cash 2,499.4m) | 6,449.1m |
| Assumed: forecast years, perpetual growth, discount rate | 10, 2.5%, 9% |
The three filed figures are read from 10-K, filed 2025-11-25, in millions of US dollars. Nobody files a growth rate or a discount rate: those three are assumptions, printed so you can disagree with them.
How much the answer depends on the discount rate
| Starting cash flow | 7% | 8% | 9% | 10% | 11% |
|---|---|---|---|---|---|
| FY2025 filed 4,278.7m | +11.9% | +14.8% | +17.4% | +19.8% | +22.0% |
| Three-year average 3,652.3m | +13.9% | +16.8% | +19.5% | +21.9% | +24.2% |
Each cell is the yearly free cash flow growth the price implies over 10 years with 2.5% after, at that discount rate. n/a means no rate reaches the price, for the reason the reverse DCF calculator names.
Today's multiples against its own filed years
| Figure | Today | Low | Median | High | Years |
|---|---|---|---|---|---|
| P/E | 88.01x | 21.80x | 33.05x | 68.74x | 10 |
| EV/EBIT | 70.62x | 22.93x | 41.86x | 58.45x | 5 |
| FCF yield | 2.1% | 2.8% | 4.3% | 6.7% | 10 |
P/E, free cash flow yield and EV to EBIT set each filed year against the close on or within a week before that fiscal year's end. The price archive here is about five years deep, so older years of those three read n/a. Per-share figures and share counts are put on today's share count after a confirmed split, the basis the price archive is kept on.
Your own DCF, starting where the price is
The growth box starts at the implied rate, so the first answer is the price. Change what you disagree with; nothing you type leaves this browser.
Filed figures, and the price-implied growth
Free cash flow growth a year over the forecast. Starts at the rate the price implies. Yours.
The return you require. Yours, and it moves the answer most.
Growth after the forecast, for ever. Yours. It must stay below the discount rate.
How long the first growth rate runs. Yours.
Newest filed year, in millions. Filed.
Total debt less cash, newest filed balance sheet, in millions. Negative is net cash. Filed.
Your value per share
404.95
About the price of 403.95, because the growth rate is the one the price implies, rounded. Change any assumption to see your own.
Show the working
| Step | Value |
|---|---|
| Forecast years at present value | 65836.04 |
| Terminal value at present value | 141753.33 |
| Enterprise value | 207589.37 |
| Less net debt, equity value | 201140.26 |
| Terminal value as a share of the total | 68.3% |
| Value per share | 404.95 |
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An implied growth rate is a statement about what a price assumes, not a forecast and not a value of ours. A computation on accounts filed with the SEC, not a recommendation and not advice. Past filings do not indicate future results. Risk disclaimer.