Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Advanced Micro Devices Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25).
The progression of Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) demonstrates a fluctuating pattern over the five-year period. Initial growth is followed by a contraction, then subsequent recovery and expansion.
- Overall Trend
- EBITDA increased from US$4,116 million in 2021 to US$5,460 million in 2022, representing a substantial year-over-year increase. However, a significant decline occurred in 2023, with EBITDA falling to US$4,067 million. This was followed by a recovery in 2024, reaching US$5,178 million, and continued growth in 2025, culminating in US$7,301 million.
- Year-over-Year Changes
- The largest percentage increase in EBITDA occurred between 2021 and 2022, with a growth rate of approximately 32.4%. The most substantial decrease was observed between 2022 and 2023, a decline of roughly 25.7%. The period from 2024 to 2025 shows a considerable increase of approximately 41.1% in EBITDA.
- Relationship to Other Earnings Metrics
- EBITDA consistently exceeds Earnings Before Tax (EBT) and Earnings Before Interest and Tax (EBIT) in each year, as expected, due to the addition of depreciation and amortization expenses. The difference between EBITDA and EBIT narrows as depreciation and amortization are subtracted. The gap between EBT and EBITDA reflects the impact of tax provisions. Net income consistently remains lower than all other earnings metrics, reflecting the deduction of taxes and interest expenses.
- Long-Term Perspective
- Despite the volatility, EBITDA demonstrates an overall upward trend when comparing the initial and final years of the period. The value in 2025 (US$7,301 million) is approximately 77.5% higher than the value in 2021 (US$4,116 million). This suggests a strengthening of underlying operational profitability over the five-year timeframe, although subject to intermediate fluctuations.
The observed fluctuations in EBITDA warrant further investigation to understand the underlying drivers, such as changes in revenue, cost of goods sold, operating expenses, and non-cash charges like depreciation and amortization.
Enterprise Value to EBITDA Ratio, Current
Advanced Micro Devices Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 332,513) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 7,301) |
| Valuation Ratio | |
| EV/EBITDA | 45.54 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Analog Devices Inc. | 32.19 |
| Applied Materials Inc. | 25.44 |
| Broadcom Inc. | 46.88 |
| Intel Corp. | 19.08 |
| KLA Corp. | 35.67 |
| Lam Research Corp. | 43.94 |
| Micron Technology Inc. | 24.25 |
| NVIDIA Corp. | 51.90 |
| Qualcomm Inc. | 9.97 |
| Texas Instruments Inc. | 27.48 |
| EV/EBITDA, Sector | |
| Semiconductors & Semiconductor Equipment | 71.89 |
| EV/EBITDA, Industry | |
| Information Technology | 37.65 |
Based on: 10-K (reporting date: 2025-12-27).
1 Click competitor name to see calculations.
If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.
Enterprise Value to EBITDA Ratio, Historical
Advanced Micro Devices Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 319,062) | 178,099) | 267,646) | 123,541) | 140,717) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 7,301) | 5,178) | 4,067) | 5,460) | 4,116) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 43.70 | 34.40 | 65.81 | 22.63 | 34.19 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Analog Devices Inc. | 25.52 | 27.10 | 15.56 | 16.23 | 38.55 | |
| Applied Materials Inc. | 20.40 | 15.31 | 15.75 | 11.04 | 17.54 | |
| Broadcom Inc. | 46.47 | 45.78 | 26.42 | 13.54 | 19.72 | |
| Intel Corp. | 17.16 | 97.96 | 18.96 | 6.20 | 6.02 | |
| KLA Corp. | 22.86 | 24.77 | 15.67 | 14.97 | 19.26 | |
| Lam Research Corp. | 19.50 | 20.93 | 15.36 | 11.36 | 16.94 | |
| Micron Technology Inc. | 11.63 | 12.40 | 32.38 | 3.26 | 6.05 | |
| NVIDIA Corp. | 36.78 | 46.95 | 95.69 | 57.58 | 58.98 | |
| Qualcomm Inc. | 13.05 | 15.19 | 12.82 | 7.84 | 12.76 | |
| Texas Instruments Inc. | — | 22.89 | 16.36 | 14.69 | 15.54 | |
| EV/EBITDA, Sector | ||||||
| Semiconductors & Semiconductor Equipment | — | 33.98 | 26.56 | 14.51 | 15.52 | |
| EV/EBITDA, Industry | ||||||
| Information Technology | — | 27.74 | 23.62 | 18.33 | 20.59 | |
Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25).
3 2025 Calculation
EV/EBITDA = EV ÷ EBITDA
= 319,062 ÷ 7,301 = 43.70
4 Click competitor name to see calculations.
The Enterprise Value to EBITDA ratio exhibited considerable fluctuation over the observed five-year period. Initial values decreased, followed by a substantial increase, and then a subsequent decline before stabilizing at a higher level than the initial period.
- Enterprise Value to EBITDA – Overall Trend
- The ratio began at 34.19 in 2021, decreased to a low of 22.63 in 2022, then increased significantly to 65.81 in 2023. A decrease to 34.40 was noted in 2024, followed by a further increase to 43.70 in 2025. This indicates a period of volatility in the market’s assessment of the company’s value relative to its operating performance.
- Enterprise Value to EBITDA – 2021-2022
- From 2021 to 2022, the ratio decreased, suggesting that the enterprise value declined at a slower rate than EBITDA, or that EBITDA increased at a faster rate than enterprise value. This could be due to improved operational efficiency or increased investor confidence in the company’s earnings potential during that period.
- Enterprise Value to EBITDA – 2022-2023
- The substantial increase in the ratio from 2022 to 2023 indicates that the enterprise value grew at a considerably faster rate than EBITDA. This could be attributed to factors such as increased market speculation, acquisitions, or a change in investor sentiment, potentially outweighing the company’s operational earnings.
- Enterprise Value to EBITDA – 2023-2025
- The ratio decreased from its peak in 2023 to 34.40 in 2024, and then increased to 43.70 in 2025. This suggests a correction following the 2023 increase, followed by renewed growth in enterprise value relative to EBITDA. The 2025 value remains elevated compared to the 2021 and 2022 levels, indicating a sustained, though fluctuating, higher valuation.
The observed fluctuations in the Enterprise Value to EBITDA ratio suggest dynamic market conditions and evolving investor perceptions regarding the company’s value proposition.