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	6,475	6,731	9,763	16,434	23,601	33,096.82	46,413.25	65,087.53	91,275.37	127,999.83
Revenue (%)
Operating Cash Flow	34	493	1,071	3,521	3,565	3,663.80	5,137.93	7,205.16	10,104.14	14,169.53
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	-129	276	777	3,220	3,115	2,836.99	3,978.44	5,579.16	7,823.92	10,971.86

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	6,475	6,731	9,763	16,434	23,601	33,096.82	46,413.25	65,087.53	91,275.37	127,999.83
Operating Cash Flow	34	493	1,071	3,521	3,565	3,663.80	5,137.93	7,205.16	10,104.14	14,169.53
Capital Expenditure	-163	-217	-294	-301	-450	-826.82	-1,159.49	-1,626	-2,280.22	-3,197.67
Free Cash Flow	-129	276	777	3,220	3,115	2,836.99	3,978.44	5,579.16	7,823.92	10,971.86
WACC
PV LFCF						1,979.81	2,462.64	3,063.22	3,810.28	4,739.52
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