Stock Analysis on Net

Advanced Micro Devices Inc. (NASDAQ:AMD)

$24.99

Price to Sales (P/S)
since 2005

Microsoft Excel

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Calculation

Advanced Micro Devices Inc., P/S, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2025-12-27), 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), 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), 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-25), 10-K (reporting date: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-25).

1 US$

2 Data adjusted for splits and stock dividends.

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


The price-to-sales ratio exhibited significant fluctuations over the analyzed period. Initially, the ratio demonstrated a decline from 3.34 in 2006 to a low of 0.22 in 2009, coinciding with a period of decreasing share price and relatively stable sales per share. Following 2009, the ratio experienced a period of modest recovery, stabilizing around 0.9 to 1.0 between 2010 and 2012. A substantial increase began in 2016, peaking at 11.95 in 2023 before decreasing to 9.42 in 2024 and 7.04 in 2025.

Initial Decline (2006-2009)
The period between 2006 and 2009 witnessed a pronounced decrease in the price-to-sales ratio. This decline was primarily driven by a substantial reduction in the share price, while sales per share remained relatively consistent. The ratio’s low point in 2009 suggests a significant undervaluation of the company relative to its sales, or potentially reflects broader market conditions impacting investor sentiment.
Stabilization and Gradual Increase (2010-2015)
From 2010 through 2015, the price-to-sales ratio remained relatively stable, fluctuating between approximately 0.38 and 0.99. This period indicates a balance between share price and sales per share, with neither experiencing dramatic changes. The ratio’s modest levels during this time suggest a conservative valuation.
Significant Expansion (2016-2023)
Beginning in 2016, the price-to-sales ratio experienced a marked expansion, increasing from 3.08 to a high of 11.95 in 2023. This surge was fueled by a combination of increasing share price and rising sales per share. The substantial increase suggests growing investor confidence and a willingness to pay a premium for each dollar of sales. The peak in 2023 indicates a potentially high valuation relative to historical levels.
Recent Moderation (2024-2025)
The most recent period, encompassing 2024 and 2025, shows a moderation in the price-to-sales ratio, decreasing from 11.95 to 7.04. This decrease could be attributed to a combination of factors, including a decline in share price and continued growth in sales per share. The recent trend suggests a potential correction in valuation, bringing the ratio closer to historical averages.

Overall, the price-to-sales ratio demonstrates a cyclical pattern, with periods of decline, stabilization, and expansion. The recent moderation from peak levels warrants further investigation to determine whether it represents a temporary correction or the beginning of a more sustained downward trend.


Comparison to Competitors

Advanced Micro Devices Inc., P/S, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2025-12-27), 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), 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), 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-25), 10-K (reporting date: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-25).


Comparison to Sector (Semiconductors & Semiconductor Equipment)

Advanced Micro Devices Inc., P/S, long-term trends, comparison to sector (semiconductors & semiconductor equipment)

Microsoft Excel

Based on: 10-K (reporting date: 2025-12-27), 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), 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), 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-25), 10-K (reporting date: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-25).


Comparison to Industry (Information Technology)