Advanced Micro Devices Stock Current Valuation
| AMD Stock | 26.80 0.54 2.06% |
Valuation analysis of Advanced Micro Devices helps investors to measure Advanced Micro's intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. At this time, Advanced Micro's Free Cash Flow is very stable compared to the past year. As of the 26th of November 2024, Total Cashflows From Investing Activities is likely to grow to about 2.4 B, while Cash is likely to drop about 2.8 B. Fundamental drivers impacting Advanced Micro's valuation include:
Price Book 3.8477 | Enterprise Value 310.7 B | Enterprise Value Ebitda 46.497 | Price Sales 12.92 | Forward PE 27.1003 |
Overvalued
Today
Please note that Advanced Micro's price fluctuation is not too volatile 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.
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 26.8 | Real 23.55 | Hype 26.81 |
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.
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: Advanced Micro Devices Company Current Valuation Analysis
Advanced Micro's Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Current Advanced Micro Current Valuation | 310.67 B |
Most of Advanced Micro's fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Advanced Micro Devices is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
| Competition |
In accordance with the recently published financial statements, Advanced Micro Devices has a Current Valuation of 310.67 B. This is much higher than that of the Semiconductors & Semiconductor Equipment sector and significantly higher than that of the Information Technology industry. The current valuation for all Canada stocks is significantly lower than that of the firm.
Advanced Current Valuation Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Advanced Micro's direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Advanced Micro could also be used in its relative valuation, which is a method of valuing Advanced Micro by comparing valuation metrics of similar companies.Advanced Micro is currently under evaluation in current valuation category among its peers.
Advanced Fundamentals
| Return On Equity | 0.0326 | ||||
| Return On Asset | 0.0125 | ||||
| Profit Margin | 0.08 % | ||||
| Operating Margin | 0.11 % | ||||
| Current Valuation | 310.67 B | ||||
| Shares Outstanding | 11.67 B | ||||
| Price To Book | 3.85 X | ||||
| Price To Sales | 12.92 X | ||||
| Revenue | 22.68 B | ||||
| Gross Profit | 12.05 B | ||||
| EBITDA | 4.48 B | ||||
| Net Income | 854 M | ||||
| Total Debt | 751 M | ||||
| Book Value Per Share | 35.11 X | ||||
| Cash Flow From Operations | 1.85 B | ||||
| Earnings Per Share | 0.22 X | ||||
| Price To Earnings To Growth | 0.35 X | ||||
| Number Of Employees | 26 K | ||||
| Beta | 1.71 | ||||
| Market Capitalization | 313.89 B | ||||
| Total Asset | 67.89 B | ||||
| Retained Earnings | 723 M | ||||
| Working Capital | 10.08 B | ||||
| Net Asset | 67.89 B |
About Advanced Micro Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Advanced Micro Devices's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Advanced Micro using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Advanced Micro Devices based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with Advanced Micro
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Advanced Micro position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Advanced Micro will appreciate offsetting losses from the drop in the long position's value.Moving against Advanced Stock
The ability to find closely correlated positions to Advanced Micro could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Advanced Micro when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Advanced Micro - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Advanced Micro Devices to buy it.
The correlation of Advanced Micro is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Advanced Micro moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Advanced Micro Devices moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Advanced Micro can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.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 closely tied with the direction of predictive economic indicators such as signals in board of governors. You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.