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Arphra AIPlain-English read on Advanced Micro Devices, Inc.’s valuationOverview
Discounted cash flow
Income / accounting-based
Multiples & assets
Scenario
Toolbox
Weighted blend
$118.98
-76.95% vs spot
Sell
Spot price
$516.10
Mkt cap $841.55B
subtle cardAnalyst PT consensus
$310.86
-39.77% vs spot
subtle cardMethods covered
15 / 16
11 in blend
subtle cardFootball field
AMD · fair-value range by method
Method comparison
AMD · fair value by valuation framework
| Method | Category | Fair value | Range | vs spot | Weight | Driver | Conf. |
|---|---|---|---|---|---|---|---|
| DCF · FCFF | dcf | $172.52 | $134.58 – $226.01 | -66.57% | 24.4% | WACC 14.3%, g₀=25.0%, gₗ=7.0% | high |
| DCF · FCFE | dcf | $150.03 | $118.47 – $193.41 | -70.93% | 20.0% | kₑ 15.2%, g₀=25.0%, gₗ=7.0% | high |
| Residual income | income | $45.98 | $40.46 – $51.50 | -91.09% | 13.3% | BV 55.31, ROE 6.9% → kₑ | high |
| EVA / MVA | income | $65.57 | $57.70 – $73.44 | -87.29% | 8.9% | IC 61.9B, WACC 14.3% | high |
| P/E · sector | multiple | $74.20 | $65.30 – $83.10 | -85.62% | 11.1% | EPS 2.65 × peer P/E 28.0 | med |
| P/S · sector | multiple | $182.47 | $155.10 – $209.84 | -64.64% | — | Rev/sh 30.41 × peer P/S 6.00 | med |
| EV / EBITDA | multiple | $128.68 | $113.24 – $144.12 | -75.07% | 11.1% | EBITDA × peer 20.0× − ND -1.1B | high |
| EV / EBIT | multiple | $78.77 | $66.96 – $90.59 | -84.74% | — | EBIT × peer 24.0× − ND | med |
| EV / Sales | multiple | $156.04 | $132.63 – $179.45 | -69.77% | 5.6% | Sales × peer 5.10× − ND | med |
| PEG-anchored | multiple | $106.00 | $90.10 – $121.90 | -79.46% | — | PEG=1, fwd EPS g 180.9% | med |
| Earnings power | intrinsic | $23.54 | $20.71 – $26.36 | -95.44% | 1.1% | NOPAT / WACC, no growth | med |
| Graham revised | intrinsic | $126.80 | $107.78 – $145.82 | -75.43% | 1.1% | EPS×(8.5+2g)·4.4/Y | low |
| Lynch P/E=g | intrinsic | $66.25 | $56.31 – $76.19 | -87.16% | 1.1% | PE = g (25.0) | low |
| Book NAV | asset | $55.31 | $52.55 – $58.08 | -89.28% | 2.2% | (Assets − Liabilities) / Shares | high |
| Liquidation | asset | $36.51 | $31.03 – $41.99 | -92.93% | — | Cash 100% + non-cash 70% − Liab. | low |
| Reverse DCF | reverse | — | — | — | — | Implied g 50.0% · Heroic — market needs ≥25% FCF growth | high |
Cost-of-capital build-up
CAPM cost of equity, after-tax cost of debt, WACC. Risk-free as of 2026-05-12.
| Risk-free rate (US 10y Treasury)rf | 4.46% |
| Equity beta (2.40)β | × 2.40 |
| Equity risk premiumERP | 4.46% |
| Cost of equity (CAPM)kₑ | 15.16% |
| Pre-tax cost of debtkd | 2.93% |
| Effective tax ratet | 0.0% |
| After-tax cost of debt | 2.93% |
| Equity weight$63.0B | 93.4% |
| Debt weight$4.5B | 6.6% |
| WACC | 14.35% |
Growth assumptions
Blended forward growth used as DCF default; terminal pegged to long-run nominal GDP.
| Analyst forward revenue growthFMP | 43.96% |
| Analyst forward EPS growthFMP | 180.87% |
| Historical 5y revenue CAGRFY | 20.49% |
| Historical 5y EPS CAGRFY | 0.77% |
| Sustainable g (ROE × retention)Δ | 6.88% |
| Blended near-term growth (g₀) | 25.00% |
| Terminal growth (gₗ) | 7.00% |
Sources
- FMP /analyst-estimates— 8 rows(as of 2023-12-27)
- Treasury rates · 10y— 4.46% rf(as of 2026-05-12)
- market_risk_premium · DB— 4.46% ERP(as of 2026-05-13)
- Sector multiple defaults— Technology (live sector PE unavailable)
- FMP /price-target-consensus— mean $310.86
This page is generated by a quantitative valuation engine for research purposes only and does not constitute investment advice. Methodology follows standard CFA / Damodaran frameworks; assumptions are driven by analyst consensus from Financial Modeling Prep and reported financial statements.