Is Advanced Micro Devices Inc (AMD) overvalued?
On Equity Rank's model estimate, AMD trades 190% above its fair value. Advanced Micro Devices Inc (AMD) last closed at $449.04; the multi-method model fair value is $155.03.
| Price | Model fair value | Price vs model |
|---|---|---|
| $449.04 | $155.03 | 190% above |
What the answer rests on
- 0 of 7 valuation methods put AMD's value above its price and 7 put it below, so the methods mostly agree.
- To justify today's price, AMD's free cash flow would need to grow about 35.4% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 29.1% a year.
- Over the past year the price sat below the model fair value on 0% of trading days. The gap ranged from 21% above to 396% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind AMD's fair value · What prices assume · Other companies