Advanced Micro Valuation

AMD Stock  USD 179.59  1.72  0.97%   
At this time, the firm appears to be overvalued. Advanced Micro Devices shows a prevailing Real Value of $152.69 per share. The current price of the firm is $179.59. Our model approximates the value of Advanced Micro Devices from analyzing the firm fundamentals such as Return On Equity of 0.0154, profit margin of 0.04 %, and Current Valuation of 284.69 B as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor purchasing undervalued instruments and exiting overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
Price Book
5.1432
Enterprise Value
284.7 B
Enterprise Value Ebitda
68.6172
Price Sales
12.6048
Forward PE
53.1915
Overvalued
Today
179.59
Please note that Advanced Micro's price fluctuation is very steady at this time. Calculation of the real value of Advanced Micro Devices is based on 3 months time horizon. Increasing Advanced Micro's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Advanced Micro Devices is useful when determining the fair value of the Advanced stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Advanced Micro. Since Advanced Micro is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Advanced Stock. However, Advanced Micro's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  179.59 Real  152.69 Target  129.11 Hype  178.78 Naive  154.95
The real value of Advanced Stock, also known as its intrinsic value, is the underlying worth of Advanced Micro Devices Company, which is reflected in its stock price. It is based on Advanced Micro's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Advanced Micro's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Advanced Micro's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
149.31
Downside
152.69
Real Value
197.55
Upside
Estimating the potential upside or downside of Advanced Micro Devices helps investors to forecast how Advanced stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Advanced Micro more accurately as focusing exclusively on Advanced Micro's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
0.560.600.69
Details
Hype
Prediction
LowEstimatedHigh
175.40178.78182.16
Details
Naive
Forecast
LowNext ValueHigh
151.56154.95158.33
Details
47 Analysts
Consensus
LowTarget PriceHigh
117.49129.11143.31
Details

Advanced Micro Investments

(480.7 Million)

Advanced Micro Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Advanced Micro's current stock value. Our valuation model uses many indicators to compare Advanced Micro value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Advanced Micro competition to find correlations between indicators driving Advanced Micro's intrinsic value. More Info.
Advanced Micro Devices is rated below average in price to sales category among related companies. It is number one stock in net asset category among related companies making up about  5,385,646,738  of Net Asset per Price To Sales. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Advanced Micro by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Advanced Micro's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Advanced Micro's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Advanced Micro's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Advanced Micro and how it compares across the competition.

About Advanced Micro Valuation

The stock valuation mechanism determines the current worth of Advanced Micro Devices on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Advanced Micro Devices. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Advanced Micro Devices based exclusively on its fundamental and basic technical indicators. By analyzing Advanced Micro's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Advanced Micro's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Advanced Micro. We calculate exposure to Advanced Micro's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Advanced Micro's related companies.
Last ReportedProjected for 2024
Gross Profit10.5 B11 B
Pretax Profit Margin 0.06  0.06 
Operating Profit Margin 0.06  0.06 
Net Profit Margin 0.06  0.07 
Gross Profit Margin 0.52  0.46 

8 Steps to conduct Advanced Micro's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Advanced Micro's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Advanced Micro's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Advanced Micro's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Advanced Micro's revenue streams: Identify Advanced Micro's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Advanced Micro's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Advanced Micro's growth potential: Evaluate Advanced Micro's management, business model, and growth potential.
  • Determine Advanced Micro's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Advanced Micro's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.

Advanced Micro Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Advanced Micro does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding1.6 B
Quarterly Earnings Growth Y O Y48.693
Forward Price Earnings53.1915

Advanced Micro Current Valuation Indicators

Valuation refers to the process of determining the present value of Advanced Micro Devices and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Advanced we look at many different elements of the entity such as Advanced's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Advanced Micro's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Advanced Micro's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Advanced Micro, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Advanced Micro's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Advanced Micro's worth.
When determining whether Advanced Micro Devices is a strong investment it is important to analyze Advanced Micro's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Advanced Micro's future performance. For an informed investment choice regarding Advanced Stock, refer to the following important reports:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Advanced Micro Devices. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in population.
You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.

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When running Advanced Micro's price analysis, check to measure Advanced Micro's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Advanced Micro is operating at the current time. Most of Advanced Micro's value examination focuses on studying past and present price action to predict the probability of Advanced Micro's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Advanced Micro's price. Additionally, you may evaluate how the addition of Advanced Micro to your portfolios can decrease your overall portfolio volatility.
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Is Advanced Micro's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Advanced Micro. If investors know Advanced will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Advanced Micro listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
48.693
Earnings Share
0.53
Revenue Per Share
14.052
Quarterly Revenue Growth
0.102
Return On Assets
0.0037
The market value of Advanced Micro Devices is measured differently than its book value, which is the value of Advanced that is recorded on the company's balance sheet. Investors also form their own opinion of Advanced Micro's value that differs from its market value or its book value, called intrinsic value, which is Advanced Micro's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Advanced Micro's market value can be influenced by many factors that don't directly affect Advanced Micro's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Advanced Micro's value and its price as these two are different measures arrived at by different means. Investors typically determine if Advanced Micro is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Advanced Micro's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.