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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Advanced Micro Devices Inc. To summarize, we found that Advanced Micro Devices Inc ranked in the 88th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for AMD, they are:
In the past 3.19 years, Advanced Micro Devices Inc has a compound free cash flow growth rate of 2%; that's higher than 94.52% of free cash flow generating stocks in the Technology sector.
The business' balance sheet suggests that 1% of the company's capital is sourced from debt; this is greater than just 5.44% 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 57.61% 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 LINX, MX, JD, ETSY, and NPTN.
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Advanced Micro Devices, Inc. (AMD) Bank of America Securities Global Technology Conference Call June 2, 2020 4:00 P.M. ET Company Participants Devinder Kumar - Senior Vice President and Chief Financial Officer Conference Call Participants Vivek Arya - Bank of America Securities Presentation Vivek Arya Hello, everyone. This is Vivek Arya,...