4 ms·
That AMD P/E ratio is artificially high because of some accounting adjustments after a merger with some other company.
by ssijak 2y ago
That AMD P/E ratio is artificially high because of some accounting adjustments after a merger with some other company.
- metabagel 2y agoXilinx, I guess, although I don't know how the accounting works on that.
- JonChesterfield 2y agoYeah, that was Xilinx. Bought with stock. I remember thinking the rise from $30 to $140 or so was way too fast so using the gain to acquire Xilinx looked great. It turned a huge gain on paper into a new division of the company with a track record of steadily printing money. It was totally lost on me that it would come at the price of literally years of people looking at P/E and declaring it too expensive. Company just put up ~7B in a quarter at 50% gross margin. Market cap is 240B. So about 9x a year's revenue, for a fabless semiconductor company. Looks crazy cheap to me, '132' P/E ratio and all.