Stock Analysis on Net

Advanced Micro Devices Inc. (NASDAQ:AMD)

Common Stock Valuation Ratios (Price Multiples)

Microsoft Excel LibreOffice Calc

Current Valuation Ratios

Advanced Micro Devices Inc., current price multiples

Microsoft Excel LibreOffice Calc
Advanced Micro Devices Inc. Applied Materials Inc. Broadcom Inc. Intel Corp. Lam Research Corp. Micron Technology Inc. NVIDIA Corp. Qualcomm Inc. Texas Instruments Inc. Semiconductors & Semiconductor Equipment Information Technology
Selected Financial Data
Current share price (P) $136.88
No. shares of common stock outstanding 1,207,610,455
Growth rate (g) 26.96%
 
Earnings per share (EPS) $2.06
Next year expected EPS $2.62
Operating profit per share $1.13
Sales per share $8.08
Book value per share (BVPS) $4.83
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 66.38 25.20 38.25 10.84 26.29 18.60 155.48 23.37 30.87 42.65 47.19
Price to next year expected earnings 52.29 19.47 38.68 9.50 20.17 15.80 121.02 20.20 25.16 37.54 39.92
Price-earnings-growth (PEG) 2.46 0.86 0.77 0.87 1.05 5.46 1.49 1.36 3.13 2.59
Price to operating profit (P/OP) 120.74 21.54 28.90 9.57 22.93 17.35 148.62 21.59 29.30 38.00 40.11
Price to sales (P/S) 16.93 6.43 8.97 2.91 7.03 3.94 40.39 6.30 11.94 9.83 10.34
Price to book value (P/BV) 28.32 12.12 9.86 2.80 17.05 2.48 39.87 21.24 18.80 10.65 15.13

Based on: 10-K (reporting date: 2020-12-26).

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 LibreOffice Calc
Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016
Price to earnings (P/E) 41.66 169.62 68.76 282.39
Price to operating profit (P/OP) 75.77 91.66 51.38 59.52
Price to sales (P/S) 10.63 8.59 3.58 2.28 3.08
Price to book value (P/BV) 17.77 20.46 18.30 19.87 31.66

Based on: 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), 10-K (reporting date: 2016-12-31).

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 increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.
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 increased from 2018 to 2019 but then slightly decreased from 2019 to 2020.
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 2018 to 2019 and from 2019 to 2020.
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 increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.

Price to Earnings (P/E)

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

Microsoft Excel LibreOffice Calc
Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016
No. shares of common stock outstanding1 1,211,280,009 1,169,661,536 1,005,298,882 969,110,191 940,758,118
Selected Financial Data (US$)
Net income (loss) (in millions) 2,490  341  337  43  (497)
Earnings per share (EPS)2 2.06 0.29 0.34 0.04 -0.53
Share price1, 3 85.64 49.45 23.05 12.53 14.00
Valuation Ratio
P/E ratio4 41.66 169.62 68.76 282.39
Benchmarks
P/E Ratio, Competitors5
Applied Materials Inc. 22.31 20.25 9.75 16.16 20.68
Broadcom Inc. 66.37 47.09 8.14 63.27
Intel Corp. 11.02 13.91 10.41 22.15 16.72
Lam Research Corp. 24.22 13.64 11.70 15.33 15.82
Micron Technology Inc. 21.80 7.98 3.40 9.20
NVIDIA Corp. 67.57 22.79 48.05 36.34 28.99
Qualcomm Inc. 28.06 22.03 31.96 17.37
Texas Instruments Inc. 27.95 24.47 18.05 27.77 21.45
P/E Ratio, Sector
Semiconductors & Semiconductor Equipment 24.81 18.97 13.52 23.90 25.56
P/E Ratio, Industry
Information Technology 33.18 24.94 24.44 24.79 20.44

Based on: 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), 10-K (reporting date: 2016-12-31).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
EPS = Net income (loss) ÷ No. shares of common stock outstanding
= 2,490,000,000 ÷ 1,211,280,009 = 2.06

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

4 2020 Calculation
P/E ratio = Share price ÷ EPS
= 85.64 ÷ 2.06 = 41.66

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 increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.

Price to Operating Profit (P/OP)

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

Microsoft Excel LibreOffice Calc
Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016
No. shares of common stock outstanding1 1,211,280,009 1,169,661,536 1,005,298,882 969,110,191 940,758,118
Selected Financial Data (US$)
Operating income (loss) (in millions) 1,369  631  451  204  (372)
Operating profit per share2 1.13 0.54 0.45 0.21 -0.40
Share price1, 3 85.64 49.45 23.05 12.53 14.00
Valuation Ratio
P/OP ratio4 75.77 91.66 51.38 59.52
Benchmarks
P/OP Ratio, Competitors5
Applied Materials Inc. 18.50 16.36 6.74 14.35 16.54
Broadcom Inc. 44.03 36.85 19.42 44.93
Intel Corp. 9.72 13.29 9.40 11.86 13.40
Lam Research Corp. 20.40 12.12 8.66 13.68 13.46
Micron Technology Inc. 19.51 6.83 3.20 7.98 106.63
NVIDIA Corp. 66.39 24.81 45.61 31.31 23.83
Qualcomm Inc. 23.32 12.60 103.26 30.15 15.26
Texas Instruments Inc. 26.53 21.46 15.00 16.81 16.07
P/OP Ratio, Sector
Semiconductors & Semiconductor Equipment 22.10 16.40 12.37 16.40 18.90
P/OP Ratio, Industry
Information Technology 28.20 21.49 17.43 18.37 15.81

Based on: 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), 10-K (reporting date: 2016-12-31).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
Operating profit per share = Operating income (loss) ÷ No. shares of common stock outstanding
= 1,369,000,000 ÷ 1,211,280,009 = 1.13

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

4 2020 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 85.64 ÷ 1.13 = 75.77

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 increased from 2018 to 2019 but then slightly decreased from 2019 to 2020.

Price to Sales (P/S)

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

Microsoft Excel LibreOffice Calc
Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016
No. shares of common stock outstanding1 1,211,280,009 1,169,661,536 1,005,298,882 969,110,191 940,758,118
Selected Financial Data (US$)
Net revenue (in millions) 9,763  6,731  6,475  5,329  4,272 
Sales per share2 8.06 5.75 6.44 5.50 4.54
Share price1, 3 85.64 49.45 23.05 12.53 14.00
Valuation Ratio
P/S ratio4 10.63 8.59 3.58 2.28 3.08
Benchmarks
P/S Ratio, Competitors5
Applied Materials Inc. 4.69 3.75 1.87 3.82 3.29
Broadcom Inc. 7.40 5.62 4.78 6.07 5.48
Intel Corp. 2.96 4.07 3.09 3.39 2.90
Lam Research Corp. 5.43 3.10 2.51 3.25 2.46
Micron Technology Inc. 2.73 2.15 1.58 2.30 1.44
NVIDIA Corp. 17.31 8.06 15.07 8.76 3.55
Qualcomm Inc. 6.20 3.98 3.37 3.54 4.21
Texas Instruments Inc. 10.81 8.54 6.38 6.83 5.77
P/S Ratio, Sector
Semiconductors & Semiconductor Equipment 5.72 4.65 3.77 4.06 3.52
P/S Ratio, Industry
Information Technology 7.27 5.72 4.76 4.58 3.74

Based on: 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), 10-K (reporting date: 2016-12-31).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
Sales per share = Net revenue ÷ No. shares of common stock outstanding
= 9,763,000,000 ÷ 1,211,280,009 = 8.06

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

4 2020 Calculation
P/S ratio = Share price ÷ Sales per share
= 85.64 ÷ 8.06 = 10.63

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 2018 to 2019 and from 2019 to 2020.

Price to Book Value (P/BV)

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

Microsoft Excel LibreOffice Calc
Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016
No. shares of common stock outstanding1 1,211,280,009 1,169,661,536 1,005,298,882 969,110,191 940,758,118
Selected Financial Data (US$)
Stockholders’ equity (in millions) 5,837  2,827  1,266  611  416 
Book value per share (BVPS)2 4.82 2.42 1.26 0.63 0.44
Share price1, 3 85.64 49.45 23.05 12.53 14.00
Valuation Ratio
P/BV ratio4 17.77 20.46 18.30 19.87 31.66
Benchmarks
P/BV Ratio, Competitors5
Applied Materials Inc. 7.63 6.67 4.73 5.94 4.93
Broadcom Inc. 7.40 5.09 3.74 5.28 3.84
Intel Corp. 2.84 3.78 2.94 3.08 2.60
Lam Research Corp. 10.55 6.39 4.28 3.82 2.45
Micron Technology Inc. 1.50 1.40 1.49 2.51 1.48
NVIDIA Corp. 15.48 10.10 19.60 10.51 3.98
Qualcomm Inc. 24.00 19.69 82.57 2.56 3.12
Texas Instruments Inc. 17.02 13.79 11.20 9.89 7.36
P/BV Ratio, Sector
Semiconductors & Semiconductor Equipment 6.20 5.23 4.68 4.09 3.30
P/BV Ratio, Industry
Information Technology 10.64 8.31 7.59 5.88 4.73

Based on: 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), 10-K (reporting date: 2016-12-31).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 5,837,000,000 ÷ 1,211,280,009 = 4.82

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

4 2020 Calculation
P/BV ratio = Share price ÷ BVPS
= 85.64 ÷ 4.82 = 17.77

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 increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.