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Advanced Micro Devices Inc
NASDAQ:AMD

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Advanced Micro Devices Inc
NASDAQ:AMD
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Price: 337.11 USD 4.3% Market Closed
Market Cap: $549.6B

EV/IC

8.5
Current
145%
More Expensive
vs 3-y average of 3.5

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
8.5
=
Enterprise Value
$341.1B
/
Invested Capital
$63.4B

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
8.5
=
Enterprise Value
$341.1B
/
Invested Capital
$63.4B

Valuation Scenarios

Advanced Micro Devices Inc is trading above its 3-year average

If EV/IC returns to its 3-Year Average (3.5), the stock would be worth $137.87 (59% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-83%
Maximum Upside
No Upside Scenarios
Average Downside
61%
Scenario EV/IC Value Implied Price Upside/Downside
Current Multiple 8.5 $337.11
0%
3-Year Average 3.5 $137.87
-59%
5-Year Average 3.8 $150.88
-55%
Industry Average 4.4 $172.59
-49%
Country Average 1.5 $58.8
-83%

Forward EV/IC
Today’s price vs future invested capital

Not enough data available to calculate forward EV/IC

Peer Comparison

All Multiples
EV/IC
P/E
All Countries
Close
Market Cap EV/IC P/E
US
Advanced Micro Devices Inc
NASDAQ:AMD
549.5B USD 8.5 126.8
US
NVIDIA Corp
NASDAQ:NVDA
5.1T USD 37.4 42.4
US
Broadcom Inc
NASDAQ:AVGO
1.9T USD 12.8 76.9
TW
Taiwan Semiconductor Manufacturing Co Ltd
TWSE:2330
57.4T TWD 10.5 30.2
US
Micron Technology Inc
NASDAQ:MU
584.8B USD 7 24.3
KR
SK Hynix Inc
KRX:000660
701.7T KRW 6.4 20.8
US
Intel Corp
NASDAQ:INTC
475.9B USD 2.9 -149.9
US
Texas Instruments Inc
NASDAQ:TXN
240.4B USD 8.7 45.8
UK
Arm Holdings PLC
NASDAQ:ARM
214.2B USD 32.2 267.4
US
Analog Devices Inc
NASDAQ:ADI
190.1B USD 4.5 70.2
US
Qualcomm Inc
NASDAQ:QCOM
167.5B USD 4.4 31.2

Market Distribution

Higher than 89% of companies in the United States of America
Percentile
89th
Based on 11 657 companies
89th percentile
8.5
Low
0 — 0.9
Typical Range
0.9 — 2.9
High
2.9 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 0.9
Median 1.5
70th Percentile 2.9
Max 566 432.7

Advanced Micro Devices Inc
Glance View

In the dynamic world of semiconductor manufacturing, Advanced Micro Devices, Inc. (AMD) stands as a formidable player, innovating relentlessly in the high-tech landscape. Founded in 1969, AMD has steadily carved out a prominent position in the marketplace by delivering cutting-edge microprocessors, graphics processing units (GPUs), and related technologies. The company's journey can be likened to a strategic chess game, where each move is meticulously planned to outwit larger rivals like Intel and NVIDIA. The core of AMD's business revolves around designing and selling advanced computer processors and graphics technologies used in everything from laptops and gaming consoles to servers and workstations. By leveraging its state-of-the-art architecture, notably the "Zen" core, AMD has managed to capture market share and redefine performance standards across various computing platforms. Under the leadership of CEO Dr. Lisa Su, AMD has shifted its focus towards high-performance computing and visualization. This pivot has been instrumental in the company's recent revenue growth. Their business model primarily hinges on licensing intellectual properties and selling integrated circuits to computer manufacturers and data centers, which are increasingly pivotal in today’s cloud-centric environment. AMD's revenue streams are primarily derived from two segments: Computing and Graphics, and Enterprise, Embedded, and Semi-Custom. The former focuses on consumer products such as PCs and graphics cards, while the latter abstracts the lucrative server and embedded solutions space. This dual-segment strategy not only diversifies AMD's offerings but also insulates it from the volatility sometimes observed in the consumer electronics market, allowing it to thrive even as macroeconomic challenges persist.

AMD Intrinsic Value
202.7 USD
Overvaluation 40%
Intrinsic Value
Price $337.11
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