AMD PE Ratio & Valuation,Is AMD Overvalued

AMD Relative Valuation

AMD's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, AMD is overvalued; if below, it's undervalued.

Historical Valuation

Advanced Micro Devices Inc (AMD) is now in the Fair zone, suggesting that its current forward PE ratio of 40.28 is considered Fairly compared with the five-year average of 33.31. The fair price of Advanced Micro Devices Inc (AMD) is between 151.62 to 217.35 according to relative valuation methord.

Relative Value

Fair Zone

151.62-217.35

Current Price：210.02

Fair

40.28

37.28

EV/EBITDA

Advanced Micro Devices Inc. (AMD) has a current EV/EBITDA of 37.28. The 5-year average EV/EBITDA is 30.88. The thresholds are as follows: Strongly Undervalued below 9.94, Undervalued between 9.94 and 20.41, Fairly Valued between 41.36 and 20.41, Overvalued between 41.36 and 51.83, and Strongly Overvalued above 51.83. The current Forward EV/EBITDA of 37.28 falls within the Historic Trend Line -Fairly Valued range.

34.99

EV/EBIT

Advanced Micro Devices Inc. (AMD) has a current EV/EBIT of 34.99. The 5-year average EV/EBIT is 28.21. The thresholds are as follows: Strongly Undervalued below 14.47, Undervalued between 14.47 and 21.34, Fairly Valued between 35.08 and 21.34, Overvalued between 35.08 and 41.95, and Strongly Overvalued above 41.95. The current Forward EV/EBIT of 34.99 falls within the Historic Trend Line -Fairly Valued range.

9.00

Advanced Micro Devices Inc. (AMD) has a current PS of 9.00. The 5-year average PS is 7.19. The thresholds are as follows: Strongly Undervalued below 3.80, Undervalued between 3.80 and 5.50, Fairly Valued between 8.88 and 5.50, Overvalued between 8.88 and 10.58, and Strongly Overvalued above 10.58. The current Forward PS of 9.00 falls within the Overvalued range.

45.19

P/OCF

Advanced Micro Devices Inc. (AMD) has a current P/OCF of 45.19. The 5-year average P/OCF is 35.86. The thresholds are as follows: Strongly Undervalued below 15.04, Undervalued between 15.04 and 25.45, Fairly Valued between 46.27 and 25.45, Overvalued between 46.27 and 56.68, and Strongly Overvalued above 56.68. The current Forward P/OCF of 45.19 falls within the Historic Trend Line -Fairly Valued range.

51.01

P/FCF

Advanced Micro Devices Inc. (AMD) has a current P/FCF of 51.01. The 5-year average P/FCF is 38.92. The thresholds are as follows: Strongly Undervalued below 16.32, Undervalued between 16.32 and 27.62, Fairly Valued between 50.22 and 27.62, Overvalued between 50.22 and 61.52, and Strongly Overvalued above 61.52. The current Forward P/FCF of 51.01 falls within the Overvalued range.

Advanced Micro Devices Inc (AMD) has a current Price-to-Book (P/B) ratio of 5.98. Compared to its 3-year average P/B ratio of 3.90 , the current P/B ratio is approximately 53.57% higher. Relative to its 5-year average P/B ratio of 7.25, the current P/B ratio is about -17.45% higher. Advanced Micro Devices Inc (AMD) has a Forward Free Cash Flow (FCF) yield of approximately 1.50%. Compared to its 3-year average FCF yield of 1.11%, the current FCF yield is approximately 34.96% lower. Relative to its 5-year average FCF yield of 1.49% , the current FCF yield is about 0.22% lower.

5.98

P/B

Median3y

3.90

Median5y

7.25

1.50

FCF Yield

Median3y

1.11

Median5y

1.49

Competitors Valuation Multiple

The average P/S ratio for AMD's competitors is 7.42, providing a benchmark for relative valuation. Advanced Micro Devices Inc Corp (AMD) exhibits a P/S ratio of 9.00, which is 21.27% above the industry average. Given its robust revenue growth of 35.59%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of AMD increased by 81.13% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 6.82B to 9.25B.

The secondary factor is the P/E Change, contributed 33.43%to the performance.

Overall, the performance of AMD in the past 1 year is driven by Revenue Growth. Which is more sustainable.

35.59%

6.82B → 9.25B

Revenue Growth

12.11%

11.31 → 12.68

Margin Expansion

33.43%

87.69 → 117.01

P/E Change

81.13%

115.95 → 210.02

Mkt Cap Growth

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Frequently Asked Questions

Is Advanced Micro Devices Inc (AMD) currently overvalued or undervalued?

What is Advanced Micro Devices Inc (AMD) fair value?

AMD's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Advanced Micro Devices Inc (AMD) is between 151.62 to 217.35 according to relative valuation methord.

How does AMD's valuation metrics compare to the industry average?

What is the current P/B ratio for Advanced Micro Devices Inc (AMD) as of Jan 08 2026?

As of Jan 08 2026, Advanced Micro Devices Inc (AMD) has a P/B ratio of 5.98. This indicates that the market values AMD at 5.98 times its book value.

What is the current FCF Yield for Advanced Micro Devices Inc (AMD) as of Jan 08 2026?

As of Jan 08 2026, Advanced Micro Devices Inc (AMD) has a FCF Yield of 1.50%. This means that for every dollar of Advanced Micro Devices Inc’s market capitalization, the company generates 1.50 cents in free cash flow.

What is the current Forward P/E ratio for Advanced Micro Devices Inc (AMD) as of Jan 08 2026?

As of Jan 08 2026, Advanced Micro Devices Inc (AMD) has a Forward P/E ratio of 40.28. This means the market is willing to pay $40.28 for every dollar of Advanced Micro Devices Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Advanced Micro Devices Inc (AMD) as of Jan 08 2026?

As of Jan 08 2026, Advanced Micro Devices Inc (AMD) has a Forward P/S ratio of 9.00. This means the market is valuing AMD at $9.00 for every dollar of expected revenue over the next 12 months.

AMD Valuation