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Advanced Micro Devices (NAS:AMD) PE Ratio

: 339.46 (As of Today)
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The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2024-02-26), Advanced Micro Devices's share price is $176.52. Advanced Micro Devices's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 was $0.52. Therefore, Advanced Micro Devices's PE Ratio for today is 339.46.


The historical rank and industry rank for Advanced Micro Devices's PE Ratio or its related term are showing as below:

AMD' s PE Ratio Range Over the Past 10 Years
Min: 28.55   Med: 79.69   Max: 1228.42
Current: 339.46


During the past 13 years, the highest PE Ratio of Advanced Micro Devices was 1228.42. The lowest was 28.55. And the median was 79.69.


AMD's PE Ratio is ranked worse than
97.31% of 632 companies
in the Semiconductors industry
Industry Median: 29.285 vs AMD: 339.46

Advanced Micro Devices's Earnings per Share (Diluted) for the three months ended in Dec. 2023 was $0.41. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 was $0.52.

As of today (2024-02-26), Advanced Micro Devices's share price is $176.52. Advanced Micro Devices's EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2023 was $1.44. Therefore, Advanced Micro Devices's PE Ratio without NRI for today is 122.58.

During the past 13 years, Advanced Micro Devices's highest PE Ratio without NRI was 364.17. The lowest was 27.08. And the median was 81.62.

Advanced Micro Devices's EPS without NRI for the three months ended in Dec. 2023 was $0.77. Its EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2023 was $1.44.

During the past 12 months, Advanced Micro Devices's average EPS without NRI Growth Rate was 215.50% per year. During the past 3 years, the average EPS without NRI Growth Rate was 8.20% per year. During the past 5 years, the average EPS without NRI Growth Rate was 43.20% per year.

During the past 13 years, Advanced Micro Devices's highest 3-Year average EPS without NRI Growth Rate was 191.10% per year. The lowest was -74.40% per year. And the median was 18.80% per year.

Advanced Micro Devices's EPS (Basic) for the three months ended in Dec. 2023 was $0.41. Its EPS (Basic) for the trailing twelve months (TTM) ended in Dec. 2023 was $0.52.


Advanced Micro Devices PE Ratio Historical Data

The historical data trend for Advanced Micro Devices's PE Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Advanced Micro Devices Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PE Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 152.87 44.52 55.99 77.11 278.13

Advanced Micro Devices Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
PE Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 77.11 426.13 At Loss 856.83 278.13

Competitive Comparison

For the Semiconductors subindustry, Advanced Micro Devices's PE Ratio, along with its competitors' market caps and PE Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Advanced Micro Devices PE Ratio Distribution

For the Semiconductors industry and Technology sector, Advanced Micro Devices's PE Ratio distribution charts can be found below:

* The bar in red indicates where Advanced Micro Devices's PE Ratio falls into.



Advanced Micro Devices PE Ratio Calculation

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

Advanced Micro Devices's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=176.52/0.520
=339.46

Advanced Micro Devices's Share Price of today is $176.52.
Advanced Micro Devices's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $0.52.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

It can also be calculated from the numbers for the whole company:


There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio or PE Ratio (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


Advanced Micro Devices  (NAS:AMD) PE Ratio Explanation

The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.

If a company loses money, the PE Ratio becomes meaningless.

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.

Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratios are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .

PE Ratio can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio.


Advanced Micro Devices PE Ratio Related Terms

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Advanced Micro Devices (NAS:AMD) Business Description

Address
2485 Augustine Drive, Santa Clara, CA, USA, 95054
Advanced Micro Devices designs a variety of digital semiconductors for markets such as PCs, gaming consoles, data centers, industrial, and automotive applications, among others. AMD's traditional strength was in central processing units, CPUs, and graphics processing units, or GPUs, used in PCs and data centers. Additionally, the firm supplies the chips found in prominent game consoles such as the Sony PlayStation and Microsoft Xbox. In 2022, the firm acquired field-programmable gate array, or FPGA, leader Xilinx to diversify its business and augment its opportunities in key end markets such as the data center and automotive.
Executives
Darla M Smith other: Chief Accounting Officer 2485 AUGUSTINE DRIVE, SANTA CLARA CA 95054
Lisa T Su officer: SVP, GM Global Business Units C/O ADVANCED MICRO DEVICES, INC., 2485 AUGUSTINE DRIVE, SANTA CLARA CA 95054
Paul Darren Grasby officer: SVP & CSO, President EMEA 2485 AUGUSTINE DRIVE, SANTA CLARA CA 95054
Philip Guido officer: EVP & Chief Commercial Officer 2485 AUGUSTINE DRIVE, SANTA CLARA CA 95054
Mark D Papermaster officer: SVP & Chief Technology Officer ONE AMD PLACE, SUNNYVALE CA 94088
Victor Peng officer: President, AECG MIPS TECHNOLOGIES INC, 1225 CHARLESTON ROAD, MOUNTAIN VIEW CA 94043
Harry A Wolin officer: SVP & GC ONE AMD PLACE, SUNNYVALE CA 94088
Forrest Eugene Norrod officer: SVP & GM EESC 9507 GLENLAKE DRIVE, AUSTIN TX 78730
Jack M Huynh officer: SVP & GM, Computing & Graphics 2485 AUGUSTINE DRIVE, SANTA CLARA CA 95054
Devinder Kumar officer: SVP, CFO & Treasurer ONE AMD PLACE, MS 68, SUNNYVALE CA 94088
Rick Bergman other: SR VP & GM GPG C/O ADVANCED MICRO DEVICES, INC., 2485 AUGUSTINE DRIVE, SANTA CLARA CA 95054
Jean X. Hu officer: EVP, CFO and Treasurer 2485 AUGUSTINE DRIVE, SANTA CLARA CA 95054
Jon A Olson director 2100 LOGIC DRIVE, SAN JOSE CA 95124
Elizabeth W Vanderslice director C/O XILINX INC, 2100 LOGIC DRIVE, SAN JOSE CA 95124
John Edward Caldwell director ONE AMD PLACE, MS 68, SUNNYVALE CA 94088