Advanced Micro Devices Inc. (NASDAQ:AMD)

Price to Earnings (P/E) Ratio

The P/E ratio demonstrates a generally upward trend with some notable volatility. Starting around mid-30s to mid-40s in 2021, the ratio peaks significantly at 332.75 in early 2023, signaling a sharp increase in market valuation relative to earnings. This is followed by fluctuations and a decline, stabilizing around the 110 to 130 range by mid to late 2025. The pronounced spike and subsequent normalization may indicate episodic market optimism or earnings variability during this period.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio shows a similar pattern to the P/E ratio with a general rise, peaking extremely at 782.37 in early 2023, reflecting a drastic increase in price relative to operating profit. Prior to the peak, the ratio decreased from mid-50s in early 2021 down to mid-30s in late 2022, indicating improving operating profitability relative to price. After the peak, the ratio declines progressively, reaching levels around mid-60s to 100 by late 2025. This behavior suggests temporary distortions, possibly due to operational or market factors affecting profitability or price.

Price to Sales (P/S) Ratio

The P/S ratio reveals moderate fluctuations with a general pattern of initial decline from near 9 in early 2021 to around 4 in late 2022. Following this period, there is an increase reaching roughly 12 in early 2024, after which the ratio exhibits some volatility but tends to decrease again towards late 2025. The changes in this ratio suggest variations in market valuation relative to revenue, possibly influenced by shifts in sales growth or investor sentiment.

Price to Book Value (P/BV) Ratio

The P/BV ratio experiences a significant contraction from around 16-20 in 2021 to roughly 2 by early 2022, indicating a sharp revaluation of equity in relation to its book value. Subsequently, it remains low with slight fluctuations between approximately 2 and 6.8 through 2025. This reduced and relatively stable range indicates a market reassessment of the company’s net asset value, reflecting possibly changes in asset composition, earnings expectations, or capital structure.

Share Price Trend

The share price exhibited notable volatility over the observed periods. Initially, there was a steady increase from $84.02 to a peak of $122.28 by September 2021. Subsequently, the price declined sharply to $58.63 by September 2022, reflecting a significant decrease. After this low, the price demonstrated a recovery and strong upward momentum, reaching a peak of $256.33 by September 2025. This recovery phase demonstrated substantial growth, especially notable in the last few quarters.

Earnings Per Share (EPS)

EPS showed an initial growth trend from $2.37 in March 2021 to $3.29 in September 2021, followed by a consistent decline that reached a trough of $0.25 by April 2023. During this period, EPS even turned slightly negative (-$0.02), indicating challenges in profitability. From this low point, EPS gradually recovered, climbing back to $2.03 by September 2025. This recovery, while positive, remained below the initial peak, suggesting partial but incomplete rebound in earnings over the term analyzed.

Price-to-Earnings (P/E) Ratio

The P/E ratio fluctuated widely, starting around a range of 34 to 50 in early periods, with a marked spike to 96.16 during December 2022 when share price remained relatively stable but EPS was low. The ratio then escalated dramatically, reaching extremes above 800 in subsequent quarters, reflecting the combination of depressed earnings and still elevated share prices. In the later periods, the ratio moderated to the range of approximately 73 to 130, indicating a somewhat normalized valuation in light of improving earnings, though still elevated compared to the early periods.

Overall Interpretation

The data indicates a period of strong initial performance followed by a significant earnings decline and share price drop. Despite these challenges, a notable recovery phase occurred, particularly in share price, which outpaced the recovery in EPS. This led to highly fluctuating valuations reflected in extreme variations in the P/E ratio. The elevated P/E ratios toward the end of the period suggest market optimism about future growth or expectations of continued earnings improvement, despite historical volatility in earnings performance.

Share Price Trends

The share price exhibited notable volatility over the observed periods. Initially, a general upward trend was observed from $84.02 to a peak of approximately $122.28 by late 2021. Subsequently, a decline occurred through 2022 with the price dropping to a low near $58.63 before recovering towards the end of the year at $78.77. Through 2023 and into early 2024, the share price demonstrated a significant upward trajectory, reaching as high as $167.69. The price showed some fluctuations in 2024 with a moderate decline followed by another increase, and ultimately a substantial rise reaching $256.33 by the latest period in late 2025.

Operating Profit Per Share (OPPS) Dynamics

Operating profit per share grew steadily in the first several periods until peaking around $3.04 in late 2021. After this peak, a pronounced decrease was observed, declining sharply to near zero and even into negative territory in mid-2023. This was the most challenging phase, with losses reflecting operational difficulties. However, from late 2023 onwards, a recovery trend took place, with OPPS increasing gradually through 2024 and 2025, reaching $1.73 by the end of the period. This pattern indicates restoration of operational profitability after a period of decline.

Price to Operating Profit (P/OP) Ratio Insights

The P/OP ratio reflected extreme variability corresponding to changes in share price and operating profit per share. Initially, the ratio hovered in the 39 to 55 range, indicative of moderate market expectations relative to operating earnings. However, from late 2022 through 2023, the ratio escalated dramatically, reaching anomalously high values such as over 700 and 675 in two consecutive periods, reflecting a combination of depressed operating profit and rising share price volatility. In the following periods, this ratio gradually decreased yet remained elevated compared to earlier years, with values stabilizing between approximately 60 and 150 by late 2025. This suggests the market maintained a relatively high valuation premium over operating profit during the recovery phase.

Overall Interpretation

The data depicts a cyclic financial performance with an initial growth phase followed by a deterioration in operating profit and near-term market valuation instability. The subsequent partial recovery in both operating profit and share price indicates improving business conditions and growing investor confidence. Nonetheless, the persistently elevated P/OP ratio during recovery suggests cautious optimism and perhaps expectations of future growth beyond current operating earnings. The substantial increase in share price towards the end of the timeline, despite moderate operating profit growth, may reflect external market factors or investor sentiment shifts beyond immediate profitability metrics.

The analysis of the quarterly financial data reveals several notable trends in the share price, sales per share, and price-to-sales (P/S) ratio over the observed periods.

Share price

The share price exhibited a general upward trend, with fluctuations throughout the timeframe. Starting at $84.02, it increased steadily to a peak of $122.28 by September 2021. It then experienced a decline, reaching a low of $58.63 in September 2022. Following this dip, the share price recovered significantly, rising to $167.69 by December 2023. After some volatility, the price again surged notably to $256.33 by September 2025, indicating an overall positive trajectory with periods of correction and recovery.

Sales per share

Sales per share demonstrated consistent growth across the quarters. Beginning at $9.40 in March 2021, this metric increased almost continuously, reaching $19.67 by September 2025. This steady increase suggests ongoing revenue expansion and improving per-share sales performance over the observed period, with only minor fluctuations noted around mid-2023.

Price-to-Sales (P/S) Ratio

The P/S ratio revealed greater volatility compared to sales per share. Initially, it remained relatively stable near 9.0, with a peak of 9.94 in September 2021. However, it then sharply decreased to a low of 4.14 in September 2022, indicating a period where share price declined faster than sales per share growth. Subsequently, the ratio increased markedly, reaching as high as 13.03 by September 2025. This escalation suggests that the market valuation grew disproportionately relative to sales, possibly indicating increased investor confidence or speculative valuation towards the latter periods.

In summary, while sales per share showed steady improvement, the share price and P/S ratio were more volatile, reflecting market sentiment fluctuations. The substantial rise in the P/S ratio towards the end of the observed timeframe points to potentially heightened market optimism or reevaluation of the company’s growth prospects despite the steady underlying sales growth.

The share price exhibited notable fluctuations over the analyzed periods, with an overall tendency towards growth in the later stages. Initially, the share price increased from $84.02 to a peak of $122.28 between March 2021 and September 2021, followed by a decline to $58.63 in September 2022. Subsequent quarters showed recovery, culminating in a significant high of $256.33 by September 2025.

Book value per share (BVPS) demonstrated a different pattern, with a relatively stable and modest increase in the early periods, moving from $5.33 to $6.25 during 2021. A sharp increase occurred by March 2022, with BVPS rising to approximately $34 and maintaining a gradual upward trend through the remaining quarters, reaching $37.34 by September 2025. This suggests considerable growth in equity value per share over the entire period.

The Price-to-Book Value (P/BV) ratio reflected significant volatility and shifts in market valuation relative to the book value. Early on, this ratio was markedly high, reaching over 20 times in September 2021. However, it sharply decreased to below 3 by March 2022, coinciding with the large increase in BVPS. Subsequently, the P/BV ratio showed fluctuations but generally remained between 2 and 7, ending at 6.86 in the last period. These movements indicate changing investor sentiment and valuation relative to the underlying book value, particularly with the sharp initial drop followed by a gradual rise.

Share Price Trend

Initial increase, followed by decline, then strong recovery and peak towards the end of the period.

Book Value per Share

Stable with modest growth initially, sharp increase in early 2022, steady upward progression thereafter.

Price-to-Book Ratio

Extremely high initially, drastic reduction coinciding with BVPS increase, then moderate fluctuations with an upward trend at the end.