AMD Analysis — TradeApes

ADVANCED MICRO DEVICES INC (AMD)

Technology Semiconductors

$466.38 close · Jun 06, 2026

Above 50 & 200 SMA

52W -14.0% from High

Methodology Breakdown

Methods agree on direction (under/over-valued) but the magnitudes diverge widely. The zone is defensible; the specific dollar isn't.

Method	Value	Role
DCF (Base Case)	$7.31	REFERENCE
DCF (TTM-anchored)	$97.70	REFERENCE
Peer Multiples	$75.14	REFERENCE
Earnings Power Value	$2.66	REFERENCE
Book Value Anchor	$258.49	REFERENCE
Earnings Anchor	$82.54	REFERENCE
Cash Floor	$5.24	REFERENCE
NAV Anchor	$258.49	REFERENCE

Verdict basis:


              direction_agreement

📈

Undervalued -39.9%

Market cap (355.83B) is 39.9% below the bear-case DCF fair value (592.38B)

Apr 07

Health Score

Out of 100

Mixed

Pillar Scores

Financial Strength 90

Operating Trend 50

Valuation 5

Capital Allocation 50

Risk Management 80

Positives

↑ Net cash position — more cash on hand than total debt +3.8

↑ Strong interest coverage — EBIT covers interest 10×+ +2.5

↑ Free cash flow positive — business generates real spendable cash +2.5

Concerns

↓ Historically expensive — EV/EBITDA in top 20% of its 5-year range -6.3

↓ Extreme P/E — above 45×, very high expectations embedded in price -5.0

Signal contribution: +10.1 from strengths -11.3 from concerns

Health Score Trend 7 snapshots

Cross-Check: Greenblatt Magic Formula

⚠ Divergent

Earnings Yield

1.0%

Rank 1139 / 1256

Return on Capital

21.1%

Rank 902 / 1256

Combined Rank

14th pctl

1256 companies ranked

Our composite ranks this company higher than the Magic Formula. This is likely because our model credits growth trajectory, improving margins, or momentum signals that the Magic Formula's static snapshot does not capture.

Based on Joel Greenblatt's Magic Formula methodology. Not investment advice.

Financials

TTM Financials

Revenue ?Total sales generated from the company's primary business activities over the trailing twelve months.	37.45B
Gross Profit ?Revenue minus cost of goods sold. What remains before operating expenses — reflects pricing power and production efficiency.	18.83B
Operating Income ?Profit from core business operations after all operating expenses (EBIT). Excludes interest and taxes.	4.36B
Net Income ?Bottom-line profit after all expenses, interest, and taxes are deducted from revenue.	5.01B
Free Cash Flow ?Operating cash flow minus capital expenditures. The actual cash the business generates after maintaining its assets — the truest measure of profitability.	8.57B
EBITDA ?Earnings before interest, taxes, depreciation & amortization. A proxy for operating cash earnings that strips out accounting and financing differences.	4.89B
Total Debt ?Combined short-term and long-term interest-bearing debt obligations. Compare against cash and earnings to gauge leverage risk.	3.22B
Cash & Equivalents ?Highly liquid assets on hand — cash, money market funds, and short-term securities. The company's immediate financial cushion.	5.59B

Valuation

Market Cap	769.53B
Enterprise Value	767.81B
EV / Revenue	20.5x
EV / EBITDA	157.2x
P/E (TTM)	153.6x
Forward P/E (extrapolated)	65.0x
PEG	0.5x
P/FCF	89.8x
FCF Yield	1.1%

EV/EBITDA vs history — 81% percentile (historically expensive)

CheapMidExpensive

EV/Sales vs history — 92% percentile (historically expensive)

CheapMidExpensive

P/Book vs history — 92% percentile (historically expensive)

CheapMidExpensive

DCF Fair Value Range (base CAGR: 53.6%)

Bear

$456.30

Base

$1,450.92

Bull

$3,536.48

Bear $456 Current $466.38 (in range) Bull $3,536

Market is pricing in 27.2% FCF growth annually — base model assumes 53.6%

Key Metrics

Gross Margin ?Gross profit as a % of revenue. Measures how efficiently the company produces its goods or services — higher is better.	50.3%
EBITDA Margin ?EBITDA as a % of revenue. Shows core operating profitability before accounting adjustments — useful for comparing across industries.	13.0%
Net Margin ?Net income as a % of revenue. The ultimate measure of overall profitability after every expense, interest payment, and tax is accounted for.	13.4%
FCF Margin ?Free cash flow as a % of revenue. Shows how much of each dollar of revenue converts into real, spendable cash.	22.9%
Revenue Growth (YoY) ?Year-over-year change in total revenue. Measures business momentum — sustained growth above 15% is typically considered strong.	35.0%
Net Income Growth (YoY) ?Year-over-year change in net income. Shows whether profits are growing faster or slower than revenue — a key indicator of improving or deteriorating quality.	124.9%
Piotroski F-Score ?Score from 0–9 measuring financial strength across profitability, leverage, and efficiency signals. 8–9 = strong, 0–2 = distressed.	7 / 9
Altman Z-Score ?Bankruptcy risk model. Above 2.99 = safe zone, 1.81–2.99 = grey zone, below 1.81 = distress signal. Most useful for manufacturing companies.	—

Community Sentiment

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Quarterly Financials

Metric	Q1 '26	Q4 '25	Q3 '25	Q2 '25	Q1 '25	Q4 '25	Q3 '25	Q2 '25	Q1 '25	Q4 '25	Q3 '24	Q2 '24
Revenue ?Total quarterly sales from primary business operations.	10.25B	10.27B	9.25B	7.69B	7.44B	7.66B	6.82B	5.84B	5.47B	6.17B	5.80B	5.36B
Gross Profit ?Quarterly revenue minus cost of goods sold.	5.42B	5.58B	4.78B	3.06B	3.74B	3.88B	3.42B	2.86B	2.56B	2.91B	2.75B	2.44B
Operating Income ?Quarterly profit from core operations before interest and taxes (EBIT).	1.48B	1.75B	1.27B	-134.0M	806.0M	871.0M	724.0M	269.0M	36.0M	342.0M	224.0M	-20.0M
Net Income ?Quarterly bottom-line profit after all expenses and taxes.	1.38B	1.51B	1.24B	872.0M	709.0M	482.0M	771.0M	265.0M	123.0M	667.0M	299.0M	27.0M
FCF ?Quarterly free cash flow: operating cash minus capital expenditures.	2.57B	2.38B	1.90B	1.73B	727.0M	1.09B	496.0M	439.0M	379.0M	242.0M	297.0M	254.0M

Revenue & Free Cash Flow

Market Cap vs. DCF Fair Value Band

Shaded region = bear-to-bull DCF range. Line = actual market cap.

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Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Scores and valuations are derived from SEC filings and publicly available data. Always do your own research before making investment decisions.