Analog Devices

Enterprise value (EV) is a measure of the value of a company regardless of its financing. It is calculated as follows:
EV = market capitalization - cash + debt.

Dividing enterprise value by turnover provides an important key figure for assessing the valuation of fast-growing but still loss-making technology companies.

EV / Sales current refers to the enterprise value at the current point in time. The current market capitalization and the values for cash, debt and sales from the last quarterly figures are used for this purpose.

EV/Sales simply explained

Point distribution for HGI score

3 Pts.

≤ 8

2 Pts.

> 8 and ≤ 10

1 Pts.

> 10 and ≤ 12

Data for Analog Devices

Calculation for Analog Devices

The gross margin is the percentage of sales that remains with the company after deducting direct production costs.
Gross margin (%) = (sales - direct costs) / sales

The gross margin gives a good indication of the profitability of a business model. The higher the percentage, the more money a company has available for sales, marketing, research+development and capital.

Point distribution for HGI score

3 Pts.

≥ 75%

2 Pts.

< 75% and ≥ 65%

1 Pts.

< 65% and ≥ 50%

Data for Analog Devices

Shares with a high gross margin

The "Rule of 40" is a simple key figure for assessing the efficiency of a company's growth and thus the quality of its business model.

The key figure is calculated as the sum of sales growth, sales growth and free cash flow margin. The higher the value, the better the company's business model. Values above 40 are considered attractive.

Point distribution for HGI score

3 Pts.

≥ 50%

2 Pts.

< 50% and ≥ 45%

1 Pts.

< 45% and ≥ 40%

Data for Analog Devices

Calculation for Analog Devices

Shares with an attractive Rule-of-40 score

The PEG is one of the most important key figures for assessing growth stocks that are already profitable. It calculates the ratio of P/E (i.e. P/E ratio) and EBIT growth. If this ratio is between 0 and 1, this indicates an undervaluation. The PEG can only be meaningfully calculated for companies that are already sustainably profitable.

Point distribution for HGI score

3 Pts.

> 0 and < 1

2 Pts.

≥ 1 and < 2

1 Pts.

≥ 2 and < 4

Data for Analog Devices

Sales growth TTM (Trailing Twelve Months) compares the sales of the last 12 months with the sales of the previous 12 months.

Sales growth (TTM) explained simply

Point distribution for HGI score

3 Pts.

≥ 40%

2 Pts.

< 40% and ≥ 30%

1 Pts.

< 30% and ≥ 20%

Data for Analog Devices

The companies with the highest sales growth (TTM)

Sales growth FY23 compares sales in the financial year 2023 with sales in the previous financial year. HGI top scorers must show sales growth FY23 of more than 10%.

Sales growth (TTM) explained simply

Data for Analog Devices

The companies with the highest sales growth (TTM)

Sales growth FY22 compares sales in the financial year 2022 with sales in the previous financial year. HGI top scorers must show sales growth FY22 of more than 10%.

Sales growth (TTM) explained simply

Data for Analog Devices

The companies with the highest sales growth (TTM)

Sales growth FY21 compares sales in the financial year 2021 with sales in the previous financial year. HGI top scorers must show sales growth FY21 of more than 10%.

Sales growth (TTM) explained simply

Data for Analog Devices

The companies with the highest sales growth (TTM)

The gearing ratio is calculated by putting the sum of current and non-current liabilities in relation to equity. The most recent quarterly figures are used for the calculation.

A leverage ratio of less than 1 indicates a low level of debt, while a leverage ratio greater than 2 indicates possible risks from the debt.

Point distribution for HGI score

3 Pts.

≤ 0.5

2 Pts.

> 0.5 and ≤ 1

1 Pts.

> 1 and ≤ 1.5

Data for Analog Devices

Calculation for Analog Devices

Shares with a low debt ratio