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. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. As for the metrics that stood out in our discounted cash flow analysis of Advanced Micro Devices Inc, consider:
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 higher than 93.45% of free cash flow generating stocks in the Technology sector.
The business' balance sheet reveals debt to be 1% of the company's capital (with equity being the remaining amount). Approximately merely 4.6% 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 54.88% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
JD, MX, HEAR, BOX, and LINX 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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