Advanced Micro Devices Inc. shares have outperformed the S&P 500 in 2021, generating a year-to-date total return of 581.4 percent. But after AMD’s huge 2021 performance, investors may be wondering if there’s any value left in the stock heading into 2022. Earnings A price-to-earnings ratio (PE) is one of the most basic fundamental metrics for gauging a stock’s value. The lower the PE, the higher the value. For comparison, the S&P 500’s PE is currently at about 29.1, nearly double its long-term average of 15.9. AMD’s PE is 41.9, more than 40 percent higher than the S&P 500 average as a whole. Growth Looking ahead to the next four quarters, the S&P 500’s forward PE ratio looks much more reasonable at just 21.2. AMD’s forward earnings multiple of 40.7 is still nearly double the S&P 500’s, making AMD look overvalued. AMD’s forward PE ratio is also significantly higher than the …
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