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AMD PE ratio is that high due to their purchase of Xilinx. It's forward PE ratio is much much lower, in the 50s.
by hmm37 2y ago
AMD PE ratio is that high due to their purchase of Xilinx. It's forward PE ratio is much much lower, in the 50s.
- drexlspivey 2y agoI'm curious, how does the all-stock acquisition that closed 2.5 years ago affect their trailing P/E but not their forward P/E ?
- staticman2 2y agoDifferent accounting methods from what I gather. The acquisition is being accounted for over a 5 year period for the trailing p/e but not being included in the forward p/e over this 5 year period. This really shows how p/e is not a great metric in a vacuum.
- lostmsu 2y agoThank you all guys for the explanation. I was very puzzled seeing AMD p/e as a complete dilettante in finance reporting.