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:
Below please find a table outlining a discounted cash flow forecast for AMD, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Advanced Micro Devices Inc ranked in the 86th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 1059% on a DCF basis. The most interesting components of our discounted cash flow analysis for Advanced Micro Devices Inc ended up being:
In the past 3.68 years, Advanced Micro Devices Inc has a compound free cash flow growth rate of 1.95%; that's better than 93.92% of cash flow producing equities in the Technology sector, where it is classified.
The business' balance sheet suggests that 1% of the company's capital is sourced from debt; this is greater than merely 4.24% of the free cash flow producing stocks we're observing.
AMD's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 53.22% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Advanced Micro Devices Inc? See NEWR, SNCR, ECOM, INSE, and TTMI.
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Jon Najarian said on CNBC's "Fast Money Halftime Report" that options traders were buying the October $85 calls in Advanced Micro Devices, Inc. (NASDAQ: AMD ). They … Full story available on Benzinga.com
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