Advanced Micro Devices, Inc. manufactures semiconductor products, including microprocessors, embedded microprocessors, chipsets, graphics, video and multimedia products. The company was founded in 1969 and is based in Sunnyvale, California.
AMD Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Advanced Micro Devices Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Advanced Micro Devices Inc ranked in the 85th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 604.33%. The most interesting components of our discounted cash flow analysis for Advanced Micro Devices Inc ended up being:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 99. Notably, its equity weight is greater than 87.51% of US equities in the Technology sector yielding a positive free cash flow.
The company's compound free cash flow growth rate over the past 2.95 years comes in at 1.81%; that's greater than 96.4% of US stocks we're applying DCF forecasting to.
The business' balance sheet reveals debt to be 1% of the company's capital (with equity being the remaining amount). Approximately only 7.3% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
DAVA, GILT, TAIT, AVGO, and BOX can be thought of as valuation peers to AMD, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.