Enterprise Value to EBITDA (EV/EBITDA)
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Advanced Micro Devices Inc. pages available for free this week:
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Reportable Segments
- Analysis of Geographic Areas
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Total Asset Turnover since 2005
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Advanced Micro Devices Inc., EBITDA calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2020-12-26).
- Net income
- The net income experienced a significant increase from 2490 million US dollars in 2020 to a peak of 3162 million in 2021. However, this was followed by a substantial decline in 2022 to 1320 million and further decreased to 854 million in 2023. In 2024, there was a recovery, with net income rising again to 1641 million. Overall, the net income shows volatility with a peak in 2021, a sharp drop over the next two years, and partial recovery in the most recent period.
- Earnings before tax (EBT)
- EBT followed a similar pattern to net income, increasing sharply from 1280 million in 2020 to 3675 million in 2021. A notable decline occurred in 2022 when EBT fell to 1198 million and further to 508 million in 2023. The year 2024 saw a marked rebound, with EBT climbing to 2022 million. This indicates fluctuations in profitability before tax, mirroring the net income trend but with a somewhat higher increase in the latest period.
- Earnings before interest and tax (EBIT)
- EBIT showed a growth trend from 1327 million in 2020 to 3709 million in 2021, followed by a decline to 1286 million in 2022 and a further reduction to 614 million in 2023. In 2024, EBIT increased significantly to 2114 million. The trend resembles that of net income and EBT, with a peak in 2021, reduction, and partial recovery, reflecting changes in operating profitability before considering interest and taxes.
- Earnings before interest, tax, depreciation and amortization (EBITDA)
- EBITDA exhibited growth from 1639 million in 2020 to 4116 million in 2021. Unlike other profit measures, EBITDA increased further to 5460 million in 2022, indicating an improvement in earnings before non-cash expenses despite overall profit declines in other categories that year. However, EBITDA decreased to 4067 million in 2023 before rising again to 5178 million in 2024. This suggests fluctuations in operational cash generation capacity, with a relatively strong level maintained compared to the other metrics.
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) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Analog Devices Inc. | |
| Applied Materials Inc. | |
| Broadcom Inc. | |
| Intel Corp. | |
| KLA Corp. | |
| Lam Research Corp. | |
| Micron Technology Inc. | |
| Monolithic Power Systems Inc. | |
| NVIDIA Corp. | |
| Qualcomm Inc. | |
| Texas Instruments Inc. | |
| EV/EBITDA, Sector | |
| Semiconductors & Semiconductor Equipment | |
| EV/EBITDA, Industry | |
| Information Technology | |
Based on: 10-K (reporting date: 2024-12-28).
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 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | ||||||
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | ||||||
| Valuation Ratio | ||||||
| EV/EBITDA3 | ||||||
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| Monolithic Power Systems Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| EV/EBITDA, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| EV/EBITDA, Industry | ||||||
| Information Technology | ||||||
Based on: 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), 10-K (reporting date: 2020-12-26).
3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value exhibited significant fluctuations over the observed years. Starting at 101,774 million USD in 2020, it increased substantially to a peak of 140,717 million USD in 2021. This was followed by a decline in 2022 to 123,541 million USD. A notable and abrupt surge occurred in 2023, with the value more than doubling to 267,646 million USD, before decreasing again to 178,099 million USD in 2024. These variations indicate considerable volatility in the company’s valuation over the given period.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA demonstrated a general upward trend despite some fluctuations. From 1,639 million USD in 2020, it rose sharply to 4,116 million USD in 2021 and further to 5,460 million USD in 2022. This was followed by a decline to 4,067 million USD in 2023, but then a partial recovery to 5,178 million USD in 2024. The year 2023 stands out as a period of reduced operational earnings compared to the previous two years, indicating potential challenges affecting profitability during that year.
- EV/EBITDA Ratio
- The EV/EBITDA ratio, which measures valuation relative to earnings, showed marked volatility. Beginning at a very high multiple of 62.1 in 2020, it fell sharply to 34.19 in 2021 and further to 22.63 in 2022, suggesting that the company became relatively cheaper in relation to its earnings during that period. However, the ratio surged dramatically to 65.81 in 2023, signaling that the enterprise value ballooned disproportionately compared to EBITDA, possibly reflecting market overvaluation or other external factors. In 2024, the ratio decreased again to 34.4, aligning closer to earlier levels but still indicating some valuation premium.
- Overall Analysis
- The data reflects a company experiencing considerable fluctuations in market valuation and operational earnings over five years. While EBITDA growth from 2020 through 2022 was robust, a dip in 2023 interrupted this trend, coinciding with a pronounced spike in enterprise value, resulting in an elevated EV/EBITDA ratio. The subsequent decline in EV and partial rebound in EBITDA in 2024 reduced valuation multiples, though they remained elevated compared to the lowest point in 2022. These patterns suggest dynamic market conditions and varying investor sentiment affecting valuation relative to operational performance.