MMarketMath

AMD

Fast growerQuality: High (71/100)1 red flag

Advanced Micro Devices · Information Technology · Semiconductors

$456.75

52w 149.22 – 584.73

20y monthly, adjusted

Mkt cap

$745.6B

P/E

182.4

P/FCF

117.4

FCF yield

0.9%

ROE

6.9%

Shldr yield

0.2%

div 0.0% + bb 0.2%

What today's price assumes

At $745.6B, the market is pricing in 32.2% annual free-cash-flow growth for the next decade (10% discount rate, 2.5% terminal growth). Over the last five years, FCF actually grew 54.0% per year — expectations look undemanding relative to history.

Simple DCF per-share range: $63 · $141 · $203 (4% / base / optimistic growth). An estimate, not a target.

Adjust the assumptions yourself →

Historical multiple lens

At its own median P/OCF of 96.5× across 11 years, AMD would trade near $456/share (25th–75th percentile: $213–$638); it trades at 96.7× today.

Assumes the historical multiple regime persists — re-ratings can be permanent.

Growth record

Compound annual growth rates from as-filed 10-K data, split-adjusted

Rev 3y

+13.6%

Rev 5y

+28.8%

Rev 10y

+24.1%

EPS 5y

+5.2%

EPS 10y

FCF 5y

+54.0%

FCF 10y

Fundamentals

Fiscal 2010–2025, from SEC filings

Revenue

2010: $6.5B
2011: $6.6B
2012: $5.4B
2013: $5.3B
2014: $5.5B
2015: $4.0B
2016: $4.3B
2017: $5.3B
2018: $6.5B
2019: $6.7B
2020: $9.8B
2021: $16.4B
2022: $23.6B
2023: $22.7B
2024: $25.8B
2025: $34.6B
$0$10.0B$20.0B$30.0B
10
13
16
19
22
25

Net income

2010: $471.0M
2011: $491.0M
2012: −$1.2B
2013: −$83.0M
2014: −$403.0M
2015: −$660.0M
2016: −$498.0M
2017: −$33.0M
2018: $337.0M
2019: $341.0M
2020: $2.5B
2021: $3.2B
2022: $1.3B
2023: $854.0M
2024: $1.6B
2025: $4.3B
$0$2.0B$4.0B
10
13
16
19
22
25

Free cash flow

2010: −$560.0M
2011: $132.0M
2012: −$471.0M
2013: −$232.0M
2014: −$193.0M
2015: −$322.0M
2016: $4.0M
2017: −$101.0M
2018: −$129.0M
2019: $276.0M
2020: $777.0M
2021: $3.2B
2022: $3.1B
2023: $1.1B
2024: $2.4B
2025: $6.7B
$0$2.0B$4.0B$6.0B
10
13
16
19
22
25

Diluted shares (lower is better)

2010: 733.0M
2011: 742.0M
2012: 741.0M
2013: 754.0M
2014: 768.0M
2015: 783.0M
2016: 835.0M
2017: 952.0M
2018: 1.1B
2019: 1.1B
2020: 1.2B
2021: 1.2B
2022: 1.6B
2023: 1.6B
2024: 1.6B
2025: 1.6B
0500.0M1.0B1.5B
10
13
16
19
22
25

Margins

-25%0%25%50%1012141618202224
Net marginFCF marginGross margin

Capital returned (dividends + buybacks)

2019: $0
2020: $0
2021: $1.8B
2022: $3.7B
2023: $985.0M
2024: $862.0M
2025: $1.3B
$0$1.0B$2.0B$3.0B
10
13
16
19
22
25

Cash vs long-term debt

$0$2.0B$4.0B$6.0B1012141618202224
CashLT debt

Quarterly

Discrete quarters from 10-Q filings; Q4 derived as fiscal year minus Q1–Q3. OCF is unwound from the year-to-date figures 10-Qs report. Compare to the same quarter a year ago — most businesses are seasonal.

Revenue by quarter

Q2'23: $5.4B
Q3'23: $5.8B
Q4'23: $6.2B
Q1'24: $5.5B
Q2'24: $5.8B
Q3'24: $6.8B
Q4'24: $7.7B
Q1'25: $7.4B
Q2'25: $7.7B
Q3'25: $9.2B
Q4'25: $10.3B
Q1'26: $10.3B
Q2'26: $11.5B
$0$5.0B$10.0B
23
24
24
25
26

Net income by quarter

Q2'23: $27.0M
Q3'23: $299.0M
Q4'23: $667.0M
Q1'24: $123.0M
Q2'24: $265.0M
Q3'24: $771.0M
Q4'24: $482.0M
Q1'25: $709.0M
Q2'25: $872.0M
Q3'25: $1.2B
Q4'25: $1.5B
Q1'26: $1.4B
Q2'26: $2.3B
$0$1.0B$2.0B
23
24
24
25
26
QuarterRevenueYoYNet incomeYoYEPSOCF
Q2'26$11.5B+50.1%$2.3B+163.4%1.38$2.4B
Q1'26$10.3B+37.8%$1.4B+95.1%0.84$3.0B
Q4'25 *$10.3B+34.1%$1.5B+213.5%0.92$2.6B
Q3'25$9.2B+35.6%$1.2B+61.2%0.75$2.2B
Q2'25$7.7B+31.7%$872.0M+229.1%0.54$2.0B
Q1'25$7.4B+35.9%$709.0M+476.4%0.44$939.0M
Q4'24 *$7.7B+24.2%$482.0M−27.7%0.30$1.3B
Q3'24$6.8B+17.6%$771.0M+157.9%0.47$628.0M
Q2'24$5.8B+8.9%$265.0M+881.5%0.16$593.0M
Q1'24$5.5B+2.2%$123.0M0.07$521.0M
Q4'23 *$6.2B+10.2%$667.0M+3076.2%0.42$381.0M
Q3'23$5.8B+4.2%$299.0M+353.0%0.18$421.0M
Q2'23$5.4B−18.2%$27.0M−94.0%0.02$379.0M

Track record

Compound annual growth by period. For debt and share count, negative is the good direction.

Series3y5y10y15y
Revenue+13.6%+28.8%+24.1%+11.8%
Operating cash flow+29.3%+48.4%+23.9%
Free cash flow+29.3%+54.0%+32.4%
EPS (diluted)+46.7%+5.2%+10.4%+9.9%
Equity+4.8%+60.9%+69.7%+31.7%
LT debt−1.6%+48.1%+1.6%+0.5%
Diluted shares+1.4%+6.3%+7.6%+5.5%
Stock price+62.9%+32.8%+51.0%+32.3%

$100, 3 years ago

$432vs $176 in SPY

62.9% vs 20.7%/yr

$100, 5 years ago

$413vs $181 in SPY

32.8% vs 12.6%/yr

$100, 10 years ago

$6,172vs $412 in SPY

51.0% vs 15.2%/yr

$100, 15 years ago

$6,687vs $813 in SPY

32.3% vs 15.0%/yr

The $1 test — market value created per $1 of earnings retained (Buffett's hurdle: at least $1)

Last 5 years

$25.10

$283.9B created / $11.3B retained

Last 10 years

$27.64

$385.6B created / $13.9B retained

Quality & capital discipline

Cash-based returns and how management deploys capital

Cash ROIC

11.8%

OCF ÷ (equity + debt)

OCF / EV yield

1.0%

MC vs 10× OCF

10.26

≤1 = priced under 10× OCF

Debt / FCF

0.3y

SBC / FCF

24.3%

Owner earnings

$5.1B

OCF − capex − SBC

OE yield

0.6%

Share count 5y

+5.5%

per year; negative = buybacks

Capital intensity

6.7%

net PP&E ÷ revenue

Sales efficiency

$0.07

new PP&E per $1 new revenue, 5y

Growth engine (5y): reinvested 283.2% of operating cash flow at an incremental return of 12.0% — an organically fundable growth rate of about 34.0% per year (growth ≈ reinvestment rate × incremental ROIC).

Checklist

20 of 27 checks pass · 74%. Checks with structurally missing inputs are excluded.

Growth & Consistency

7/7

  • Revenue growth

    28.8% · 5y CAGR ≥ 5%

    pass
  • EPS growth

    5.2% · 5y CAGR ≥ 5%

    pass
  • FCF growth

    54.0% · 5y CAGR ≥ 5%

    pass
  • Revenue rises consistently

    8 of 9 · up in ≥ 7 of last 10 years

    pass
  • FCF consistently positive

    8 of 10 · positive in ≥ 8 of last 10 years

    pass
  • Profitable every year

    8 of 10 · net income > 0 in ≥ 8 of last 10

    pass
  • Cash flow keeps up with sales

    48.4% vs 28.8% · OCF CAGR ≥ 0.9× revenue CAGR

    pass

Profitability

5/7

  • Net margin

    12.5% · ≥ 8%

    pass
  • Operating margin

    10.7% · ≥ 10%

    pass
  • Gross margin stable or rising

    49.5% vs 44.9% · no drop > 2 pts over 3y

    pass
  • Return on equity

    6.9% · ≥ 12%

    fail
  • Cash ROIC

    11.8% · ≥ 12%

    fail
  • FCF margin

    19.4% · ≥ 5%

    pass
  • Earnings back their cash

    OCF $7.7B vs NI $4.3B · OCF ≥ net income (latest FY)

    pass

Balance Sheet

5/5

  • Debt payable from cash flow

    0.3y · LT debt ≤ 3× FCF

    pass
  • Cash cushion

    236% · cash ≥ 50% of LT debt

    pass
  • Leverage

    0.04 · LT debt ≤ 1.5× equity

    pass
  • Equity positive and compounding

    $63.0B · equity > 0 and grew over ~5y

    pass
  • Interest burden

    4% · interest ≤ 15% of operating income

    pass

Capital Allocation

2/4

  • Share count flat or shrinking

    5.5% · ≤ +0.5%/yr over ~5y

    fail
  • Stock comp restrained

    24% · SBC ≤ 15% of FCF

    fail
  • Distributions funded by FCF

    20% · dividends + buybacks ≤ 100% of FCF

    pass
  • Repurchases are a habit

    5 of 10 · buybacks in ≥ 5 of last 10 years

    pass

Valuation Discipline

1/4

  • FCF yield

    0.9% · ≥ 3%

    fail
  • Earnings multiple

    182.4 · P/E ≤ 25

    fail
  • Price asks less than history delivered

    32.2% vs 54.0% · implied FCF growth ≤ historical FCF CAGR

    pass
  • Shareholder yield

    0.2% · dividends + buybacks ≥ 2% of market cap

    fail

Red flags

Mechanical checks — a flag is a question to investigate, not a verdict

Shareholder dilution

Diluted share count has grown by more than 2% per year over ~5 years.

Financial data

As filed in 10-Ks; per-share figures split-adjusted. $ in millions.

FYRevenueGross profitOp incomeNet incomeEPSOCFCapExFCFDividendsBuybacksSBCCashLT debtEquityShares
202534,63917,1523,6944,3352.657,7099746,7351,3161,6385,5392,34862,9991,636
202425,78512,7251,9001,6411.003,0416362,4058621,4073,7871,72157,5681,637
202322,68010,4604018540.531,6675461,1219851,3843,9331,71755,8921,625
202223,60110,6031,2641,3200.843,5654503,1153,7021,0814,8352,46754,7501,571
202116,4347,9293,6483,1622.573,5213013,2201,7623792,53517,4971,229
20209,7634,3471,3692,4902.061,07129477702741,5953305,8371,207
20196,7312,8686313410.3049321727601971,4664862,8271,120
20186,4752,4474513370.3234163-1291371,0781,1141,2661,064
20175,2531,787127-33-0.0312113-101971,1851,325596952
20164,3191,003-373-498-0.6081774861,2641,435477835
20153,9911,080-481-660-0.84-22696-322637852,007-350783
20145,5061,839-155-403-0.53-9895-193818052,025187768
20135,2991,978103-83-0.11-14884-232918691,986544754
20125,4221,235-1,056-1,183-1.60-338133-471975492,037538741
20116,5682,9403684910.66382250132908692,0651,590742
20106,4942,9618484710.64-412148-560876062,1881,013733

Some concepts are structurally absent for certain industries (banks report no gross profit or capex). Missing ≠ zero.