Discounted Cash Flow (DCF) Analysis Levered

Advanced Micro Devices, Inc. (AMD)

$124.92

+3.87 (+3.20%)
All numbers are in Millions, Currency in USD
Stock DCF: 50.66 | 124.92 | overvalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 6,4756,7319,76316,43423,60133,096.8246,413.2565,087.5391,275.37127,999.83
Revenue (%)
Operating Cash Flow 344931,0713,5213,5653,663.805,137.937,205.1610,104.1414,169.53
Operating Cash Flow (%)
Capital Expenditure -163-217-294-301-450-826.82-1,159.49-1,626-2,280.22-3,197.67
Capital Expenditure (%)
Free Cash Flow -1292767773,2203,1152,836.993,978.445,579.167,823.9210,971.86

Weighted Average Cost Of Capital

Share price $ 124.92
Beta 1.937
Diluted Shares Outstanding 1,571
Cost of Debt
Tax Rate -11.49
After-tax Cost of Debt 3.07%
Risk-Free Rate
Market Risk Premium
Cost of Equity 12.886
Total Debt 2,863
Total Equity 196,249.32
Total Capital 199,112.32
Debt Weighting 1.44
Equity Weighting 98.56
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 6,4756,7319,76316,43423,60133,096.8246,413.2565,087.5391,275.37127,999.83
Operating Cash Flow 344931,0713,5213,5653,663.805,137.937,205.1610,104.1414,169.53
Capital Expenditure -163-217-294-301-450-826.82-1,159.49-1,626-2,280.22-3,197.67
Free Cash Flow -1292767773,2203,1152,836.993,978.445,579.167,823.9210,971.86
WACC
PV LFCF 1,979.812,462.643,063.223,810.284,739.52
SUM PV LFCF 20,406.99

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 12.74
Free cash flow (t + 1) 11,191.30
Terminal Value 104,202.03
Present Value of Terminal Value 57,211.86

Intrinsic Value

Enterprise Value 77,618.84
Net Debt -1,972
Equity Value 79,590.84
Shares Outstanding 1,571
Equity Value Per Share 50.66