DCF Valuation
Advanced Micro Devices Inc (AMD) DCF Valuation — Is AMD overvalued?
The estimated DCF fair value of one Advanced Micro Devices Inc (AMD) share is $62.19. Compared to the current market price of $482.05, the stock is overvalued by 87.1%.
DCF fair value
$62.19
Market price
$482.05
Upside / downside
−87.1%
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Advanced Micro Devices Inc (AMD) DCF valuation FAQ
What is the DCF fair value of Advanced Micro Devices Inc (AMD)?
The discounted-cash-flow model estimates the intrinsic fair value of one Advanced Micro Devices Inc (AMD) share at $62.19, based on a 10-year projection of its cash flows converging to Damodaran industry averages.
Is Advanced Micro Devices Inc (AMD) overvalued or undervalued?
Against the current market price of $482.05, the DCF fair value of $62.19 implies AMD is overvalued by 87.1%.
How is the AMD DCF value calculated?
It is a 10-year discounted-cash-flow estimate built from Advanced Micro Devices Inc's reported fundamentals, with terminal assumptions anchored to Damodaran NYU industry datasets. The market price refreshes daily; the DCF fair value updates when Advanced Micro Devices Inc files a new quarterly or annual report.
How this AMD valuation is built
The model projects ten years of Advanced Micro Devices Inc's free cash flow to the firm and discounts each year at its own cost of capital. Rather than assuming today's growth and margins persist forever, a moat-scoring step — weighing Advanced Micro Devices Inc's ROIC-versus-WACC spread, gross-margin trend, and reinvestment efficiency — decides how many years the business holds its edge before its economics mean-revert toward the Damodaran NYU benchmarks for its industry.
WACC is rebuilt each year from an unlevered-then-relevered beta and the company's evolving capital structure; terminal value uses the Gordon growth model with a reinvestment rate tied to the return earned on new capital (goodwill stripped out to reflect operating efficiency). Every assumption — growth, margins, tax, leverage, convergence timing — is editable, and running the full interactive model adds a 10,000-draw Monte Carlo simulation and WACC-versus-terminal-growth sensitivity heatmaps.
The market price refreshes daily; the DCF fair value updates when Advanced Micro Devices Inc files a new quarterly or annual report. For educational/informational purposes only — not investment advice. Last updated 2026-08-06.