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 86th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 1159.17%. In terms of the factors that were most noteworthy in this DCF analysis for AMD, they are:
The compound growth rate in the free cash flow of Advanced Micro Devices Inc over the past 3.44 years is 2.07%; that's better than 93.74% of cash flow producing equities in the Technology sector, where it is classified.
The business' balance sheet reveals debt to be 1% of the company's capital (with equity being the remaining amount). Approximately merely 4.86% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
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 53.43% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
MX, JD, HEAR, GLGI, and SNX 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.
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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
Advanced Micro Devices is on track to close out September lower. Longtime AMD bull Todd Gordon of TradingAnalysis.com sees strong demand and solid technicals as laying the groundwork for a breakout in the fourth quarter.
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