Stock Analysis on Net

Advanced Micro Devices Inc. (NASDAQ:AMD)

Common Stock Valuation Ratios (Price Multiples) 

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Current Valuation Ratios

Advanced Micro Devices Inc., current price multiples

Microsoft Excel
Advanced Micro Devices Inc. Analog Devices Inc. Applied Materials Inc. Broadcom Inc. First Solar Inc. Intel Corp. KLA Corp. Lam Research Corp. Micron Technology Inc. NVIDIA Corp. NXP Semiconductors N.V. ON Semiconductor Corp. Qualcomm Inc. Texas Instruments Inc. Semiconductors & Semiconductor Equipment Information Technology
Selected Financial Data
Current share price (P) $64.14
No. shares of common stock outstanding 1,614,320,900
Growth rate (g) 42.43%
 
Earnings per share (EPS) $1.96
Next year expected EPS $2.79
Operating profit per share $2.26
Sales per share $10.18
Book value per share (BVPS) $4.64
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 32.75 52.52 12.33 28.32 29.78 5.45 13.26 11.02 9.41 31.20 21.19 27.01 14.26 18.64 18.45 24.11
Price to next year expected earnings 22.99 50.79 9.53 28.64 28.94 4.66 9.56 8.06 7.99 24.05 24.31 23.19 12.33 14.94 15.98 19.74
Price-earnings-growth (PEG) 0.77 15.35 0.42 10.35 0.32 0.34 0.30 0.53 1.05 1.64 0.91 0.75 1.19 1.09
Price to operating profit (P/OP) 28.38 43.16 10.54 21.40 23.79 5.57 12.06 9.43 8.78 30.30 15.35 21.18 13.17 16.16 16.61 21.26
Price to sales (P/S) 6.30 9.98 3.15 6.64 4.77 1.37 4.78 2.95 1.99 11.31 3.58 4.05 3.84 7.89 4.62 6.34
Price to book value (P/BV) 13.81 1.92 5.93 7.30 2.34 1.14 31.44 8.09 1.26 11.43 6.07 5.95 12.96 10.86 4.67 10.16

Based on: 10-K (reporting date: 2021-12-25).

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Advanced Micro Devices Inc., historical price multiples

Microsoft Excel
Dec 25, 2021 Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017
Price to earnings (P/E) 45.54 41.66 169.62 68.76 282.39
Price to operating profit (P/OP) 39.48 75.77 91.66 51.38 59.52
Price to sales (P/S) 8.76 10.63 8.59 3.58 2.28
Price to book value (P/BV) 19.21 17.77 20.46 18.30 19.87

Based on: 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Advanced Micro Devices Inc. P/E ratio decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Advanced Micro Devices Inc. P/OP ratio decreased from 2019 to 2020 and from 2020 to 2021.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Advanced Micro Devices Inc. P/S ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Advanced Micro Devices Inc. P/BV ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 not reaching 2019 level.

Price to Earnings (P/E)

Advanced Micro Devices Inc., historical P/E calculation, comparison to benchmarks

Microsoft Excel
Dec 25, 2021 Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017
No. shares of common stock outstanding1 1,199,303,422 1,211,280,009 1,169,661,536 1,005,298,882 969,110,191
Selected Financial Data (US$)
Net income (in millions) 3,162  2,490  341  337  43 
Earnings per share (EPS)2 2.64 2.06 0.29 0.34 0.04
Share price1, 3 120.08 85.64 49.45 23.05 12.53
Valuation Ratio
P/E ratio4 45.54 41.66 169.62 68.76 282.39
Benchmarks
P/E Ratio, Competitors5
Analog Devices Inc. 68.31 41.43 31.04 22.17 44.94
Applied Materials Inc. 22.05 22.31 20.25 9.75 16.16
Broadcom Inc. 40.73 66.37 47.09 8.14 63.27
First Solar Inc. 17.16 21.56 39.05
Intel Corp. 9.85 11.02 13.91 10.41 22.15
KLA Corp. 25.97 25.92 18.44 23.02 15.04
Lam Research Corp. 21.03 24.22 13.64 11.70 15.33
Micron Technology Inc. 13.38 21.80 7.98 3.40 9.20
NVIDIA Corp. 78.52 67.57 22.79 48.05 36.34
NXP Semiconductors N.V. 26.86 950.99 131.98 12.50 17.94
ON Semiconductor Corp. 25.13 73.60 40.58 14.75 12.19
Qualcomm Inc. 17.15 28.06 22.03 31.96
Texas Instruments Inc. 20.38 27.95 24.47 18.05 27.77
P/E Ratio, Sector
Semiconductors & Semiconductor Equipment 24.33 26.37 20.04 13.89 23.74
P/E Ratio, Industry
Information Technology 29.30 32.94 24.23 23.80 24.48

Based on: 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30).

1 Data adjusted for splits and stock dividends.

2 2021 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 3,162,000,000 ÷ 1,199,303,422 = 2.64

3 Closing price as at the filing date of Advanced Micro Devices Inc. Annual Report.

4 2021 Calculation
P/E ratio = Share price ÷ EPS
= 120.08 ÷ 2.64 = 45.54

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Advanced Micro Devices Inc. P/E ratio decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.

Price to Operating Profit (P/OP)

Advanced Micro Devices Inc., historical P/OP calculation, comparison to benchmarks

Microsoft Excel
Dec 25, 2021 Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017
No. shares of common stock outstanding1 1,199,303,422 1,211,280,009 1,169,661,536 1,005,298,882 969,110,191
Selected Financial Data (US$)
Operating income (in millions) 3,648  1,369  631  451  204 
Operating profit per share2 3.04 1.13 0.54 0.45 0.21
Share price1, 3 120.08 85.64 49.45 23.05 12.53
Valuation Ratio
P/OP ratio4 39.48 75.77 91.66 51.38 59.52
Benchmarks
P/OP Ratio, Competitors5
Analog Devices Inc. 56.12 33.76 24.74 17.62 30.97
Applied Materials Inc. 18.85 18.50 16.36 6.74 14.35
Broadcom Inc. 30.77 44.03 36.85 19.42 44.93
First Solar Inc. 13.70 27.05 140.50 36.30
Intel Corp. 10.06 9.72 13.29 9.40 11.86
KLA Corp. 21.69 20.99 15.60 12.01 10.92
Lam Research Corp. 18.34 20.40 12.12 8.66 13.68
Micron Technology Inc. 12.48 19.51 6.83 3.20 7.98
NVIDIA Corp. 75.05 66.39 24.81 45.61 31.31
NXP Semiconductors N.V. 19.46 118.31 50.03 10.18 18.90
ON Semiconductor Corp. 19.70 49.43 19.86 10.92 14.51
Qualcomm Inc. 15.84 23.32 12.60 103.26 30.15
Texas Instruments Inc. 17.67 26.53 21.46 15.00 16.81
P/OP Ratio, Sector
Semiconductors & Semiconductor Equipment 21.90 23.26 17.13 12.47 16.73
P/OP Ratio, Industry
Information Technology 25.84 28.11 20.97 17.06 18.20

Based on: 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30).

1 Data adjusted for splits and stock dividends.

2 2021 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 3,648,000,000 ÷ 1,199,303,422 = 3.04

3 Closing price as at the filing date of Advanced Micro Devices Inc. Annual Report.

4 2021 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 120.08 ÷ 3.04 = 39.48

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Advanced Micro Devices Inc. P/OP ratio decreased from 2019 to 2020 and from 2020 to 2021.

Price to Sales (P/S)

Advanced Micro Devices Inc., historical P/S calculation, comparison to benchmarks

Microsoft Excel
Dec 25, 2021 Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017
No. shares of common stock outstanding1 1,199,303,422 1,211,280,009 1,169,661,536 1,005,298,882 969,110,191
Selected Financial Data (US$)
Net revenue (in millions) 16,434  9,763  6,731  6,475  5,329 
Sales per share2 13.70 8.06 5.75 6.44 5.50
Share price1, 3 120.08 85.64 49.45 23.05 12.53
Valuation Ratio
P/S ratio4 8.76 10.63 8.59 3.58 2.28
Benchmarks
P/S Ratio, Competitors5
Analog Devices Inc. 12.98 9.03 7.06 5.35 6.40
Applied Materials Inc. 5.63 4.69 3.75 1.87 3.82
Broadcom Inc. 9.55 7.40 5.62 4.78 6.07
First Solar Inc. 2.75 3.17 1.74 2.51 2.19
Intel Corp. 2.48 2.96 4.07 3.09 3.39
KLA Corp. 7.80 5.43 4.74 4.57 4.00
Lam Research Corp. 5.62 5.43 3.10 2.51 3.25
Micron Technology Inc. 2.83 2.73 2.15 1.58 2.30
NVIDIA Corp. 20.40 17.31 8.06 15.07 8.76
NXP Semiconductors N.V. 4.54 5.74 3.61 2.93 4.29
ON Semiconductor Corp. 3.76 3.28 1.56 1.57 1.78
Qualcomm Inc. 4.62 6.20 3.98 3.37 3.54
Texas Instruments Inc. 8.63 10.81 8.54 6.38 6.83
P/S Ratio, Sector
Semiconductors & Semiconductor Equipment 6.09 5.71 4.56 3.73 4.04
P/S Ratio, Industry
Information Technology 7.71 7.32 5.60 4.70 4.56

Based on: 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30).

1 Data adjusted for splits and stock dividends.

2 2021 Calculation
Sales per share = Net revenue ÷ No. shares of common stock outstanding
= 16,434,000,000 ÷ 1,199,303,422 = 13.70

3 Closing price as at the filing date of Advanced Micro Devices Inc. Annual Report.

4 2021 Calculation
P/S ratio = Share price ÷ Sales per share
= 120.08 ÷ 13.70 = 8.76

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Advanced Micro Devices Inc. P/S ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.

Price to Book Value (P/BV)

Advanced Micro Devices Inc., historical P/BV calculation, comparison to benchmarks

Microsoft Excel
Dec 25, 2021 Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017
No. shares of common stock outstanding1 1,199,303,422 1,211,280,009 1,169,661,536 1,005,298,882 969,110,191
Selected Financial Data (US$)
Stockholders’ equity (in millions) 7,497  5,837  2,827  1,266  611 
Book value per share (BVPS)2 6.25 4.82 2.42 1.26 0.63
Share price1, 3 120.08 85.64 49.45 23.05 12.53
Valuation Ratio
P/BV ratio4 19.21 17.77 20.46 18.30 19.87
Benchmarks
P/BV Ratio, Competitors5
Analog Devices Inc. 2.50 4.22 3.61 3.02 3.22
Applied Materials Inc. 10.60 7.63 6.67 4.73 5.94
Broadcom Inc. 10.50 7.40 5.09 3.74 5.28
First Solar Inc. 1.35 1.56 1.05 1.08 1.27
Intel Corp. 2.05 2.84 3.78 2.94 3.08
KLA Corp. 15.98 11.83 8.15 11.39 10.50
Lam Research Corp. 13.64 10.55 6.39 4.28 3.82
Micron Technology Inc. 1.79 1.50 1.40 1.49 2.51
NVIDIA Corp. 20.13 15.48 10.10 19.60 10.51
NXP Semiconductors N.V. 7.70 5.53 3.40 2.63 2.94
ON Semiconductor Corp. 5.53 4.87 2.60 2.92 3.56
Qualcomm Inc. 15.59 24.00 19.69 82.57 2.56
Texas Instruments Inc. 11.87 17.02 13.79 11.20 9.89
P/BV Ratio, Sector
Semiconductors & Semiconductor Equipment 6.16 6.00 4.95 4.41 3.94
P/BV Ratio, Industry
Information Technology 12.35 11.46 8.82 7.28 5.70

Based on: 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30).

1 Data adjusted for splits and stock dividends.

2 2021 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 7,497,000,000 ÷ 1,199,303,422 = 6.25

3 Closing price as at the filing date of Advanced Micro Devices Inc. Annual Report.

4 2021 Calculation
P/BV ratio = Share price ÷ BVPS
= 120.08 ÷ 6.25 = 19.21

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Advanced Micro Devices Inc. P/BV ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 not reaching 2019 level.