Advanced Micro Devices, Inc.

NasdaqGS:AMD Stock Report

Mkt Cap: US$121.6b

We’ve recently updated our valuation analysis.

Advanced Micro Devices Valuation

Is AMD undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AMD?

Other financial metrics that can be useful for relative valuation.

AMD key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5.2x
Enterprise Value/EBITDA21.4x
PEG Ratio1.5x

Price to Earnings Ratio vs Peers

How does AMD's PE Ratio compare to its peers?

The above table shows the PE ratio for AMD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average18.9x
QCOM QUALCOMM
11.5x4.6%US$149.5b
ADI Analog Devices
31.5x9.0%US$86.5b
TXN Texas Instruments
18.1x-0.4%US$158.8b
INTC Intel
14.5x11.0%US$116.5b
AMD Advanced Micro Devices
53.5x35.2%US$121.6b

Price-To-Earnings vs Peers: AMD is expensive based on its Price-To-Earnings Ratio (53.5x) compared to the peer average (18.9x).


Price to Earnings Ratio vs Industry

How does AMD's PE Ratio compare vs other companies in the US Semiconductor Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a17.2%
n/an/an/a

Price-To-Earnings vs Industry: AMD is expensive based on its Price-To-Earnings Ratio (53.5x) compared to the US Semiconductor industry average (17.9x)


Price to Earnings Ratio vs Fair Ratio

What is AMD's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AMD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio53.5x
Fair PE Ratio32.9x

Price-To-Earnings vs Fair Ratio: AMD is expensive based on its Price-To-Earnings Ratio (53.5x) compared to the estimated Fair Price-To-Earnings Ratio (32.9x).


Share Price vs Fair Value

What is the Fair Price of AMD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AMD ($75.4) is trading below our estimate of fair value ($94.48)

Significantly Below Fair Value: AMD is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst AMD forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$75.40
US$89.50
+18.7%
26.2%US$200.00US$60.00n/a36
Jan ’24US$64.77
US$89.43
+38.1%
26.6%US$200.00US$60.00n/a37
Dec ’23US$77.48
US$89.45
+15.4%
26.4%US$200.00US$60.00n/a38
Nov ’23US$59.66
US$92.51
+55.1%
26.8%US$200.00US$60.00n/a37
Oct ’23US$63.36
US$119.50
+88.6%
17.9%US$200.00US$80.00n/a36
Sep ’23US$82.33
US$121.20
+47.2%
17.3%US$200.00US$80.00n/a35
Aug ’23US$96.78
US$122.62
+26.7%
20.9%US$200.00US$63.00n/a34
Jul ’23US$73.67
US$129.63
+76.0%
20.0%US$200.00US$63.00n/a35
Jun ’23US$101.22
US$132.74
+31.1%
19.0%US$200.00US$80.00n/a34
May ’23US$85.52
US$143.49
+67.8%
16.1%US$200.00US$100.00n/a34
Apr ’23US$108.19
US$149.37
+38.1%
15.5%US$200.00US$100.00n/a34
Mar ’23US$113.83
US$151.28
+32.9%
14.6%US$200.00US$100.00n/a34
Feb ’23US$116.78
US$141.81
+21.4%
16.5%US$180.00US$80.00n/a34
Jan ’23US$143.90
US$140.72
-2.2%
16.7%US$180.00US$80.00US$64.7733
Dec ’22US$149.11
US$140.50
-5.8%
16.9%US$180.00US$80.00US$77.4833
Nov ’22US$125.23
US$132.14
+5.5%
13.6%US$180.00US$80.00US$59.6633
Oct ’22US$102.45
US$113.35
+10.6%
15.4%US$150.00US$74.00US$63.3633
Sep ’22US$109.99
US$112.08
+1.9%
15.4%US$150.00US$74.00US$82.3332
Aug ’22US$106.19
US$109.23
+2.9%
16.1%US$150.00US$74.00US$96.7833
Jul ’22US$93.31
US$103.62
+11.1%
14.4%US$135.00US$75.00US$73.6733
Jun ’22US$80.81
US$101.38
+25.5%
20.3%US$135.00US$17.00US$101.2233
May ’22US$81.62
US$102.55
+25.6%
20.8%US$135.00US$17.00US$85.5229
Apr ’22US$81.09
US$100.47
+23.9%
21.5%US$135.00US$17.00US$108.1930
Mar ’22US$86.39
US$100.20
+16.0%
21.8%US$135.00US$17.00US$113.8330
Feb ’22US$87.66
US$99.77
+13.8%
22.1%US$135.00US$17.00US$116.7830
Jan ’22US$91.71
US$91.58
-0.1%
22.8%US$120.00US$13.00US$143.9031

Analyst Forecast: Target price is less than 20% higher than the current share price.


Discover undervalued companies