Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
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- 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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Current Valuation Ratios
Advanced Micro Devices Inc., current price multiples
| Advanced Micro Devices Inc. | 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. | Semiconductors & Semiconductor Equipment | Information Technology | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||
| Current share price (P) | |||||||||||||||||
| No. shares of common stock outstanding | |||||||||||||||||
| Growth rate (g) | |||||||||||||||||
| Earnings per share (EPS) | |||||||||||||||||
| Next year expected EPS | |||||||||||||||||
| Operating profit per share | |||||||||||||||||
| Sales per share | |||||||||||||||||
| Book value per share (BVPS) | |||||||||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||||||||
| Price to earnings (P/E) | |||||||||||||||||
| Price to next year expected earnings | |||||||||||||||||
| Price-earnings-growth (PEG) | |||||||||||||||||
| Price to operating profit (P/OP) | |||||||||||||||||
| Price to sales (P/S) | |||||||||||||||||
| Price to book value (P/BV) | |||||||||||||||||
Based on: 10-K (reporting date: 2024-12-28).
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
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| Price to earnings (P/E) | ||||||
| Price to operating profit (P/OP) | ||||||
| Price to sales (P/S) | ||||||
| Price to book value (P/BV) |
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).
- Price to Earnings (P/E) Ratio
- The Price to Earnings ratio shows a general upward trend from 41.66 in 2020 to a peak of 317.27 in 2023, before declining to 110.61 in 2024. This indicates an increase in market valuation relative to earnings over the period, with a significant spike in 2023, potentially reflecting heightened investor expectations or reduced earnings during that year, followed by a partial normalization in 2024.
- Price to Operating Profit (P/OP) Ratio
- The Price to Operating Profit ratio exhibits considerable volatility. From 75.77 in 2020, it halves in 2021 to 39.48, spikes dramatically to 675.69 in 2023, and then sharply decreases again to 95.53 in 2024. This pattern suggests variability in operating profit margins or market valuations, with an extreme overvaluation relative to operating profits in 2023, aligning with the P/E ratio's spike, and a subsequent correction.
- Price to Sales (P/S) Ratio
- The Price to Sales ratio demonstrates fluctuations without a consistent trend, starting at 10.63 in 2020, declining to 5.38 in 2022, rising to 11.95 in 2023, and falling again to 7.04 in 2024. This movement indicates variable market pricing relative to revenue, with the highest valuation occurring in 2023, paralleling trends observed in other valuation metrics.
- Price to Book Value (P/BV) Ratio
- The Price to Book Value ratio decreases markedly from 17.77 in 2020 to 2.32 in 2022, then increases moderately to 4.85 in 2023 before declining slightly to 3.15 in 2024. This downward trend over the initial years suggests a reduction in market valuation relative to net assets, with some recovery in 2023 followed by stabilization, indicating changes in investors' assessment of the company's asset base or growth prospects.
Price to Earnings (P/E)
Advanced Micro Devices Inc., historical P/E calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net income (in millions) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| 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. | ||||||
| P/E Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| P/E Ratio, 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).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Advanced Micro Devices Inc. Annual Report.
4 2024 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price experienced notable fluctuations over the five-year period. Beginning at $85.64 in December 2020, the price rose significantly to $120.08 in December 2021. This was followed by a considerable decline to $78.77 in December 2022. In December 2023, the price sharply increased to a peak of $167.69 before retracting to $112.01 by the end of 2024. Overall, the share price demonstrated volatility with a strong rebound occurring in 2023.
- Earnings per Share (EPS) Trend
- Earnings per share showed variability with a generally declining trend from 2020 to 2023. EPS rose from $2.06 in 2020 to $2.64 in 2021 but then decreased sharply to $0.82 in 2022 and further to $0.53 in 2023. In 2024, EPS showed signs of recovery, increasing to $1.01, although it remained below the 2020 and 2021 levels.
- Price-to-Earnings (P/E) Ratio Trend
- The P/E ratio increased significantly over the period, reflecting changes in price relative to earnings. Starting at 41.66 in 2020, the ratio climbed moderately to 45.54 in 2021, followed by a notable rise to 96.16 in 2022. The P/E ratio then spiked dramatically to 317.27 in 2023, indicative of high valuation relative to earnings that year. By 2024, it declined to 110.61, remaining elevated but substantially lower than the previous year’s peak.
- Overall Analysis
- The data reveals a period marked by considerable volatility in both market valuation and profitability metrics. The sharp fluctuations in EPS and the corresponding movements in the P/E ratio suggest the market valuation was highly sensitive to changes in earnings performance. The spike in P/E ratio in 2023 is particularly notable, coinciding with the lowest EPS and highest share price, indicating a potential market optimism or speculative dynamics despite reduced earnings. The recovery in EPS and the partial correction of the P/E ratio in 2024 could reflect improving operational results or market reassessment. Investors and analysts should consider these volatility patterns and the divergence between price and earnings when making evaluations.
Price to Operating Profit (P/OP)
Advanced Micro Devices Inc., historical P/OP calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Operating income (in millions) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| 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. | ||||||
| P/OP Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| P/OP Ratio, 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).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Advanced Micro Devices Inc. Annual Report.
4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price Analysis
- The share price exhibited notable volatility over the observed periods. It increased significantly from $85.64 at the end of 2020 to a peak of $167.69 by the end of 2023, reflecting a strong upward trend for most of the duration. However, after reaching this peak, the share price declined to $112.01 by the end of 2024, indicating a partial retracement from the prior high.
- Operating Profit per Share
- The operating profit per share displayed considerable fluctuations. It increased sharply from $1.13 in 2020 to $3.04 in 2021, then dropped significantly to $0.78 in 2022. The downward trend continued in 2023, reaching a low of $0.25, before recovering to $1.17 in 2024. This pattern suggests variability in operational profitability with some challenges particularly evident in 2022 and 2023, followed by a rebound in 2024.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio demonstrates significant swings, reflecting changes in valuation relative to operating profit. It decreased from 75.77 in 2020 to 39.48 in 2021, suggesting enhanced profitability or a valuation adjustment. Subsequently, it surged to an exceptionally high 100.42 in 2022 and escalated further to 675.69 in 2023, indicating either steep price appreciation relative to operating profit or diminished profitability. By the end of 2024, the ratio normalized somewhat to 95.53, still elevated compared to earlier years.
- Overall Insights
- The combined data reveal a period of financial instability in terms of operating profitability, accompanied by considerable share price volatility. Despite declines in operating profit per share during 2022 and 2023, the share price increased sharply in 2023, resulting in a disproportionate P/OP ratio. This divergence may reflect market optimism or expectations of future performance improvements that were not yet realized in operating results. The rebound in both operating profit per share and relative valuation in 2024 suggests some recovery but remains below the peak valuations observed in prior years.
Price to Sales (P/S)
Advanced Micro Devices Inc., historical P/S calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net revenue (in millions) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| 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. | ||||||
| P/S Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| P/S Ratio, 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).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Sales per share = Net revenue ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Advanced Micro Devices Inc. Annual Report.
4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
The financial data reveals notable fluctuations in several key indicators over the analyzed periods. The share price demonstrated considerable volatility, experiencing an overall upward trend from US$85.64 in late 2020 to a peak of US$167.69 by the end of 2023, followed by a decline to US$112.01 in late 2024. This pattern suggests significant market sentiment changes and possibly reflects underlying business or market conditions.
Sales per share show a generally positive trajectory, increasing from US$8.06 in 2020 to US$15.91 in 2024, with a minor dip in 2023 from the 2022 level. The consistent increase over the five-year span indicates growth in the company's revenue relative to its outstanding shares, suggesting improved operational performance or expansion.
The Price-to-Sales (P/S) ratio displays substantial variability. Initially, it declined from 10.63 in 2020 to 5.38 in 2022, indicating that the share price decreased relative to sales or that sales grew faster than the share price during this period. Subsequently, the ratio surged to 11.95 in 2023, implying that the market valuation outpaced sales growth significantly that year. In 2024, the ratio dropped again to 7.04, aligning with the reduction in share price and continued growth in sales per share.
Overall, the interplay between share price, sales per share, and the P/S ratio indicates periods of strong sales growth coupled with fluctuating investor valuation levels. The dramatic swings in the P/S ratio imply shifts in market expectations or external factors affecting the share price independently of sales performance.
Price to Book Value (P/BV)
Advanced Micro Devices Inc., historical P/BV calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity (in millions) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| 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. | ||||||
| P/BV Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| P/BV Ratio, 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).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Advanced Micro Devices Inc. Annual Report.
4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trends
- The share price exhibited notable fluctuations over the analyzed periods. Initially, there was an increase from $85.64 in late 2020 to $120.08 in late 2021. This was followed by a decline to $78.77 at the end of 2022. Subsequently, the share price sharply rose to $167.69 in late 2023 before declining again to $112.01 in late 2024. Overall, the share price shows volatility but finishes higher in 2024 relative to 2020.
- Book Value per Share (BVPS) Developments
- Book value per share demonstrated significant growth during the period. Starting at $4.82 in 2020, BVPS increased steadily to $6.25 by 2021. A substantial jump occurred by the end of 2022, reaching $33.98, and this upward trend continued with modest increases to $34.59 in 2023 and to $35.53 in 2024. This pattern suggests consistent strengthening of the company's net asset value per share over time.
- Price-to-Book Value Ratio (P/BV) Analysis
- The P/BV ratio reveals considerable variation, reflecting the interplay between share price and book value per share. Initially, P/BV was very high at 17.77 in 2020 and further increased slightly to 19.21 in 2021, indicating the market price was significantly higher than the book value. In 2022, the ratio drastically dropped to 2.32, indicating the price became much closer to the book value, mainly due to the large increase in BVPS and the decline in share price. In 2023, the ratio rose again to 4.85 before decreasing to 3.15 in 2024. This suggests that the market valuation relative to book value has become more moderate and less inflated compared to earlier years.
- Overall Insights
- The company exhibits a strengthening balance sheet as reflected by the rising book value per share. Share price volatility across the years impacts valuation multiples, with the P/BV ratio showing a trend toward normalization after an initially high premium over book value. The data points to improved shareholder equity and a market gradually adjusting to the underlying asset value growth.