US Equities Analysis

AMD — Advanced Micro Devices

Research evidence pack

Source-backed valuation visuals

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2. Company Fundamentals

2.1 Competitiveness

Metric Value
Operating Margins 14.4%
Profit Margins 13.37%
Return on Equity 8.06%
Return on Assets 3.65%
Free Float 1.62B
Short Int % Utilisation 2.71%

2.2 Growth

Metric Value
Revenue Growth 37.8%
Free Cash Flow 7.17B
EBITDA 98.14 (Ratio)
Enterprise Value 729.21B
EV/Revenue 19.47
EV/EBITDA 98.14

Revenue growth of 37.8% places the company in a high-growth category.

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* 275.11%
Risk / Std Dev (Ann.)* 71.76%
1-Year Price Return* 189.78%

Latest Market Data (as of 2026-08-14, US Eastern time):

Metric Value
Last Price $514.39
52-Week Range $149.22 – $584.73
Observation Count 251 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

2.5 FCFF DCF Valuation

Valuation basis: This research model follows a five-year, unlevered FCFF DCF. It starts from reported annual operating inputs, forecasts revenue and operating cash conversion under an explicit mechanical policy, discounts FCFF at WACC, applies a Gordon-growth terminal value, and bridges enterprise value to an indicative common-equity value per share. It is an analytical estimate rather than a recommendation or personalised target price.

Step 1 — Forecast Operating Profit and NOPAT

Reported operating input Value
Revenue $34.64B
Prior annual revenue $25.79B
EBIT $4.27B
Tax rate 21.00%
NOPAT = EBIT × (1 − tax rate) $3.37B
Forecast start-growth basis 15.00%
Forecast policy latest reported annual revenue growth, bounded to -10.00% / 15.00%

Step 2 — Calculate FCFF

Current FCFF building block Value
NOPAT $3.37B
Add: depreciation & amortisation $3.00B
Less: capital expenditure -$974.00M
Less/(add): working-capital cash-flow movement -$2.38B
Current unlevered FCFF $3.03B

Explicit FCFF forecast

Forecast year Revenue growth NOPAT D&A Capex Change in NWC FCFF Present value
1 15.00% $3.88B $3.45B -$1.12B -$2.73B $3.48B $3.20B
2 11.88% $4.34B $3.86B -$1.91B -$3.06B $3.24B $2.52B
3 8.75% $4.72B $4.20B -$2.78B -$3.33B $2.81B $1.85B
4 5.62% $4.99B $4.44B -$3.69B -$3.51B $2.22B $1.23B
5 2.50% $5.11B $4.55B -$4.55B -$3.60B $1.51B $707.54M

Step 3 — Determine the Discount Rate (WACC)

WACC input Value
Risk-free rate 4.71%
Equity risk premium assumption 5.50%
Beta 2.49
Cost of equity 18.40%
Pre-tax cost of debt 4.32%
WACC 18.33%
WACC validation requires assumption review

Step 4 — Estimate Terminal Value

Terminal-value input Value
Perpetuity growth rate 2.50%
Terminal value $9.77B
Implied terminal EV / EBITDA 0.89x
Terminal value as % of enterprise value 30.71%

Step 5 — Discount Cash Flows to Enterprise Value

Enterprise-value component Value
Present value of explicit FCFF $9.50B
Present value of terminal value $4.21B
Indicated enterprise value $13.72B
Discounting convention mid-year for explicit FCFF; terminal value discounted at year-end five

Step 6 — Convert Enterprise Value to Equity Value

Equity bridge Value
Indicated enterprise value $13.72B
Less: gross interest-bearing debt $3.85B
Add: cash and equivalents $10.55B
Add: affiliate investments $0.00
Less: minority interests $0.00
Indicated common equity value $20.42B

Step 7 — Calculate Indicative Value Per Share

Per-share output Value
Shares used 1,636,000,000.00
Share-count basis reported diluted weighted-average shares
Current market price $478.83
DCF indicative value per share $12.48
Indicative value vs. market price -97.39%

Model Integrity Checks

Check Result
Perpetuity growth is below the risk-free rate pass
Perpetuity growth is below WACC pass
WACC is within the configured operating-company range review required
Terminal-year FCFF is positive pass
Terminal capex converges to D&A pass
Terminal-value concentration review required
Implied price differs from spot by more than 30% review required

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks 3/4 evidenced checks
Lynch-inspired balance-and-growth checks 4/4 evidenced checks

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:22:07.778495 UTC; latest reported fiscal period: 2025-12-31 00:00:00. Default assumptions: five-year forecast, mid-year discounting for explicit FCFF, a maximum 2.50% perpetuity-growth rate below both WACC and the risk-free rate, historical operating-ratio persistence, and capex convergence to D&A by year five. No sell-side consensus or management guidance is substituted for reported inputs. This is research and analysis only, not personalized financial advice.

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