Discounted Cash Flow (DCF) Analysis Levered

Advanced Micro Devices, Inc. (AMD)

$98.75

+6.10 (+6.58%)

All numbers are in Millions, Currency in USD

Stock DCF: 30.69 | 98.75 | overvalue

Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	5,253	6,475	6,731	9,763	16,434	22,210.19	30,016.59	40,566.77	54,825.11	74,094.94
Revenue (%)
Operating Cash Flow	68	34	493	1,071	3,521	1,845.18	2,493.72	3,370.21	4,554.76	6,155.66
Operating Cash Flow (%)
Capital Expenditure	-113	-163	-217	-294	-301	-565.71	-764.54	-1,033.26	-1,396.43	-1,887.25
Capital Expenditure (%)
Free Cash Flow	-45	-129	276	777	3,220	1,279.47	1,729.17	2,336.94	3,158.33	4,268.41

Weighted Average Cost Of Capital

Share price	$ 98.75
Beta	1.869
Diluted Shares Outstanding	1,207
Cost of Debt
Tax Rate	13.82
After-tax Cost of Debt	4.43%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.579
Total Debt	661
Total Equity	119,191.25
Total Capital	119,852.25
Debt Weighting	0.55
Equity Weighting	99.45
Wacc

Build Up Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	5,253	6,475	6,731	9,763	16,434	22,210.19	30,016.59	40,566.77	54,825.11	74,094.94
Operating Cash Flow	68	34	493	1,071	3,521	1,845.18	2,493.72	3,370.21	4,554.76	6,155.66
Capital Expenditure	-113	-163	-217	-294	-301	-565.71	-764.54	-1,033.26	-1,396.43	-1,887.25
Free Cash Flow	-45	-129	276	777	3,220	1,279.47	1,729.17	2,336.94	3,158.33	4,268.41
WACC
PV LFCF						1,147.09	1,389.88	1,684.05	2,040.49	2,472.37
SUM PV LFCF										8,733.88

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	11.54
Free cash flow (t + 1)	4,353.78
Terminal Value	45,637.07
Present Value of Terminal Value	26,434.10

Intrinsic Value

Enterprise Value	35,167.99
Net Debt	-1,874
Equity Value	37,041.99
Shares Outstanding	1,207
Equity Value Per Share	30.69