Stock Analysis on Net

Advanced Micro Devices Inc. (NASDAQ:AMD) 

Enterprise Value to EBITDA (EV/EBITDA)

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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Advanced Micro Devices Inc., EBITDA calculation

US$ in millions

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12 months ended: Dec 30, 2023 Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Dec 28, 2019
Net income 854 1,320 3,162 2,490 341
Add: Income tax expense (346) (122) 513 (1,210) 31
Earnings before tax (EBT) 508 1,198 3,675 1,280 372
Add: Interest expense 106 88 34 47 94
Earnings before interest and tax (EBIT) 614 1,286 3,709 1,327 466
Add: Depreciation and amortization 3,453 4,174 407 312 222
Earnings before interest, tax, depreciation and amortization (EBITDA) 4,067 5,460 4,116 1,639 688

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).

Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. Advanced Micro Devices Inc. EBITDA increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Enterprise Value to EBITDA Ratio, Current

Advanced Micro Devices Inc., current EV/EBITDA calculation, comparison to benchmarks

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 304,745
Earnings before interest, tax, depreciation and amortization (EBITDA) 4,067
Valuation Ratio
EV/EBITDA 74.93
Benchmarks
EV/EBITDA, Competitors1
Analog Devices Inc. 16.35
Applied Materials Inc. 19.55
Broadcom Inc. 29.11
Enphase Energy Inc. 24.63
Intel Corp. 18.61
KLA Corp. 21.34
Lam Research Corp. 21.45
Micron Technology Inc. 43.11
NVIDIA Corp. 61.69
ON Semiconductor Corp. 10.07
Qualcomm Inc. 19.14
Texas Instruments Inc. 17.37
EV/EBITDA, Sector
Semiconductors & Semiconductor Equipment 46.86
EV/EBITDA, Industry
Information Technology 29.91

Based on: 10-K (reporting date: 2023-12-30).

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

Microsoft Excel
Dec 30, 2023 Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Dec 28, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 267,646 123,541 140,717 101,774 56,823
Earnings before interest, tax, depreciation and amortization (EBITDA)2 4,067 5,460 4,116 1,639 688
Valuation Ratio
EV/EBITDA3 65.81 22.63 34.19 62.10 82.59
Benchmarks
EV/EBITDA, Competitors4
Analog Devices Inc. 15.56 16.23 38.55 23.61 18.67
Applied Materials Inc. 15.75 11.04 17.54 16.82 14.60
Broadcom Inc. 26.42 13.54 19.72 18.89 16.32
Enphase Energy Inc. 27.19 55.15 99.19 155.30 62.22
Intel Corp. 18.96 6.20 6.02 6.40 8.73
KLA Corp. 15.67 14.97 19.26 18.10 14.14
Lam Research Corp. 15.35 11.34 16.67 17.76 10.07
Micron Technology Inc. 32.38 3.26 6.05 6.46 3.90
NVIDIA Corp. 95.68 57.59 58.96 52.90 21.10
ON Semiconductor Corp. 10.57 11.65 14.40 20.27 11.13
Qualcomm Inc. 12.82 7.84 12.76 19.49 10.55
Texas Instruments Inc. 16.36 14.69 15.54 21.75 17.73
EV/EBITDA, Sector
Semiconductors & Semiconductor Equipment 26.00 14.60 15.64 15.01 11.62
EV/EBITDA, Industry
Information Technology 23.37 18.32 20.41 19.60 14.44

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).

1 See details »

2 See details »

3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 267,646 ÷ 4,067 = 65.81

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/EBITDA Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. Advanced Micro Devices Inc. EV/EBITDA ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.