Advanced Micro Devices Inc. (NASDAQ:AMD)

The valuation ratios exhibit considerable fluctuation throughout the observed period, spanning from March 2022 to December 2025. Initial values generally decreased through the first three quarters of 2022 before experiencing significant increases in late 2022 and into early 2023. Subsequent quarters show a general trend towards stabilization and, in some cases, decline, though volatility remains present. The latter half of the period demonstrates a more moderate range of values, with some ratios suggesting a potential downward trajectory.

Price to Earnings (P/E) Ratio

The P/E ratio demonstrates the most dramatic shifts. It rose from 47.48 in March 2022 to a peak of 332.75 in April 2023, before declining substantially to 73.07 by March 2025. This suggests a period of rapidly increasing investor expectations followed by a correction. The most recent value, 75.29 in December 2025, indicates a slight increase from the March 2025 level, but remains significantly below the peak. Missing data exists for July 2023.

Price to Operating Profit (P/OP) Ratio

Similar to the P/E ratio, the P/OP ratio experienced a substantial increase, reaching 782.37 in April 2023. It then decreased, though remaining elevated compared to earlier periods. The ratio moved from 40.92 in March 2022 to 88.36 in December 2025. Missing data exists for July 2023 and September 2023.

Price to Sales (P/S) Ratio

The P/S ratio exhibited a more moderate pattern of change. It decreased from 8.54 in March 2022 to a low of 4.14 in September 2022, then increased to 8.08 in July 2023 before settling around 9.42 in December 2025. While fluctuations are present, the overall trend is relatively stable compared to the P/E and P/OP ratios.

Price to Book Value (P/BV) Ratio

The P/BV ratio showed an initial decline from 2.91 in March 2022 to 1.73 in September 2022. It then increased, peaking at 6.86 in September 2025, before decreasing slightly to 5.18 in December 2025. This suggests a changing perception of the company’s asset value relative to its market price.

Overall, the observed ratios suggest a period of significant market re-evaluation. The substantial increases in the P/E and P/OP ratios in early 2023, followed by subsequent declines, indicate a potential shift in investor sentiment. The P/S and P/BV ratios demonstrate more moderate changes, providing a potentially more stable perspective on valuation.

The price to earnings (P/E) ratio exhibits significant fluctuations over the observed period. Initially, the ratio demonstrates relative stability, followed by substantial volatility and a subsequent moderating trend. A detailed examination reveals distinct phases in the ratio’s behavior.

Initial Stability & Increase (Mar 26, 2022 – Dec 31, 2022)

From March 2022 through December 2022, the P/E ratio fluctuated between approximately 41 and 96. It began at 47.48, increased to 50.59, decreased to 41.59, and then experienced a marked increase to 96.16. This period suggests a growing investor expectation relative to earnings, culminating in a substantially higher valuation by the end of the year.

Extreme Volatility (Apr 1, 2023 – Dec 30, 2023)

The period from April 2023 to December 2023 is characterized by extreme volatility. The P/E ratio initially reached an exceptionally high value of 332.75, followed by a period where earnings per share (EPS) became negative, resulting in an undefined P/E ratio for July 1, 2023. Subsequently, the ratio surged to 839.13 and then decreased to 317.27, before declining to 208.95, 172.70, and 132.06. This suggests significant uncertainty and potentially speculative trading activity during this timeframe, coupled with earnings challenges.

Moderating Trend & Recent Performance (Jan 1, 2024 – Jun 28, 2025)

From January 2024 through June 2025, the P/E ratio demonstrates a moderating trend, decreasing from 132.06 to 93.41, then increasing to 126.23, and finally decreasing to 75.29. This indicates a stabilization of investor sentiment and a more reasonable valuation relative to earnings. The ratio has generally trended downwards, suggesting that earnings growth has kept pace with, or exceeded, share price appreciation during this period. The most recent value, 75.29, represents the lowest P/E ratio observed in the analyzed timeframe.

The substantial fluctuations in the P/E ratio highlight the sensitivity of the valuation to changes in both share price and earnings per share. The period of extreme volatility warrants further investigation to understand the underlying drivers of these movements. The recent moderating trend and lower P/E ratio may indicate a more sustainable valuation.

The Price to Operating Profit (P/OP) ratio exhibits significant fluctuations over the observed period. Initially, the ratio demonstrates relative stability, followed by substantial volatility and a subsequent declining trend before stabilizing again. A detailed examination reveals distinct phases in the ratio’s behavior.

Initial Stability & Increase (Mar 26, 2022 – Dec 31, 2022)

From March 2022 to December 2022, the P/OP ratio fluctuated between approximately 36 and 44, with a notable peak at 100.42 in December 2022. This suggests a period of relatively consistent valuation relative to operating profit, punctuated by a significant increase in the ratio at the end of the year. The increase in December 2022 could be attributed to a decrease in operating profit per share, or an increase in share price, or a combination of both.

Extreme Volatility (Apr 1, 2023 – Dec 30, 2023)

The period from April 2023 to December 2023 is characterized by extreme volatility. The ratio spikes to 782.37 in April 2023, followed by a value of 675.69 in December 2023. This dramatic increase is likely linked to a substantial decline in operating profit per share, potentially even negative values, during this timeframe. The ratio then decreases, but remains elevated compared to the earlier period.

Declining Trend & Stabilization (Mar 30, 2024 – Dec 27, 2025)

From March 2024 through December 2025, the P/OP ratio generally declines, moving from 400.66 to 88.36. This suggests an improvement in operating profit relative to the share price, or a decrease in the share price, or a combination of both. The ratio appears to stabilize in the latter half of 2025, indicating a potential leveling off of the valuation relative to operating profit. The ratio in December 2025 is the lowest observed in the entire period.

The substantial fluctuations in the P/OP ratio highlight the sensitivity of the valuation to changes in operating profit. The period of extreme volatility suggests significant challenges in maintaining consistent profitability. The subsequent decline and stabilization may indicate a recovery in operating performance or a correction in market valuation, or both. Further investigation into the underlying drivers of operating profit and share price movements is warranted to fully understand these trends.

Missing Values

Values for P/OP are missing for July 1, 2023 and September 30, 2023. This absence of information limits the ability to fully assess the trend during that period. The missing values coincide with negative operating profit per share, suggesting a potential calculation issue or deliberate omission due to the negative denominator.

The price-to-sales ratio exhibited considerable fluctuation throughout the observed period, spanning from March 2022 to December 2025. Initially, the ratio decreased from 8.54 to a low of 4.14 before stabilizing and then increasing significantly towards the end of the period.

Initial Decline (Mar 26, 2022 – Sep 24, 2022)

A consistent downward trend in the price-to-sales ratio was evident during the first seven months, decreasing from 8.54 to 4.14. This suggests a decreasing investor willingness to pay for each dollar of sales during this timeframe, potentially reflecting concerns about future growth or increased risk.

Stabilization and Subsequent Increase (Dec 31, 2022 – Jun 29, 2024)

Following the initial decline, the ratio experienced a period of stabilization and then gradual increase, reaching 11.95 by December 2022. This upward movement continued, peaking at 10.23 in March 2024, before slightly decreasing to 10.05 in June 2024. This indicates a renewed investor confidence, potentially driven by improved financial performance or positive market sentiment.

Volatility and Recent Trends (Sep 28, 2024 – Dec 27, 2025)

The period from September 2024 to December 2025 was characterized by increased volatility. The ratio decreased to 7.04 in September 2024, then increased sharply to 13.03 in September 2025, before decreasing again to 9.42 by December 2025. This suggests a period of uncertainty and shifting investor expectations. The most recent value indicates a moderation from the peak, but remains elevated compared to earlier periods.

Sales per Share Trend

Sales per share generally increased over the observed period, rising from 11.65 to 21.25. This positive trend in sales per share likely contributed to the fluctuations observed in the price-to-sales ratio, as investors reacted to the company’s revenue generation capabilities.

In summary, the price-to-sales ratio demonstrated a complex pattern of decline, stabilization, increase, and volatility. The ratio’s movements appear to be influenced by both investor sentiment and the underlying trend in sales per share.

The price-to-book value (P/BV) ratio exhibits considerable fluctuation over the observed period. Initially, the ratio demonstrates relative stability, followed by a period of significant volatility and then a generally increasing trend before leveling off and declining again.

Initial Period (Mar 26, 2022 – Dec 31, 2022)

The P/BV ratio begins at 2.91 and experiences a slight decline to 2.87 before a substantial drop to 1.73. It then recovers partially to 2.32 by the end of the year. This initial period suggests a decreasing market valuation relative to the company’s book value, followed by some recovery, potentially reflecting changing investor sentiment or market conditions.

Recovery and Expansion (Apr 1, 2023 – Jun 29, 2024)

From April 2023, the P/BV ratio shows a clear upward trend, increasing from 2.40 to 4.14. This indicates a growing willingness of investors to pay a premium for the company’s net asset value. The ratio peaks at 4.23 in September 2024, suggesting a period of positive market perception.

Recent Volatility (Sep 28, 2024 – Dec 27, 2025)

Following the peak, the P/BV ratio declines to 3.15, then experiences a significant surge to 6.86 before decreasing to 5.18 by December 2025. This recent volatility suggests increased uncertainty or a reassessment of the company’s future prospects. The initial decline followed by a substantial increase and subsequent decrease indicates a dynamic market response to evolving information.

Book Value per Share Trend

Throughout the period, the book value per share (BVPS) demonstrates a consistent, albeit gradual, upward trend, increasing from 34.15 to 38.64. This suggests a steady accumulation of net assets. The increasing BVPS provides a baseline against which the fluctuations in the P/BV ratio can be assessed.

Overall Interpretation

The P/BV ratio’s movements do not consistently correlate with the steady increase in BVPS. Periods of increasing P/BV suggest positive market sentiment exceeding the growth in net assets, while declining ratios indicate the opposite. The recent volatility highlights the sensitivity of the market valuation to external factors and investor expectations.