AMD Investors, You Need to Know These Facts Today.

By Chris Stiles • Tuesday, December 20 12:02 • Permanent Link

Advanced Micro Devices has moved 1.2% so far today on a volume of 27,638,237, compared to its average of 81,388,426. In contrast, the S&P 500 index moved 0.2%. Over the last 52 weeks, the stock moved -55.2%, with a high of $156.73 and a low of $54.57. During this time, the stock lagged the S&P 500 index by -37.3%. Advanced Micro Devices, Inc. operates as a semiconductor company worldwide. The large-cap Technology company has 15,500 full time employees and is based in Santa Clara, CA. Advanced Micro Devices has not offered any dividends in the last year.

Basic Valuation Metrics Show Advanced Micro Devices Is Overvalued:

Compared to the Technology sector's average of 26.5, Advanced Micro Devices has a trailing twelve month price to earnings (P/E) ratio of 40.6 and, based on its Eps guidance of 3.65, an expected P/E ratio of 17.9. The firm's price to earnings growth (PEG) is 1.24, which shows that the market is fairly valuing the company in terms of its expected rate of earnings growth. . Advanced Micro Devices's price to book (P/B) ratio is 1.9 compared to its sector average of 5.57.

As of the date of publication, the company is trading 86.8% above their fair value as expressed by Benjamin Graham's formula. We calculate the Graham number as follows:

√(22.5 * TTM earnings per share * book value per share) = √(22.5 * 1.61 * 33.835) = $35.01

There is Exuberant market sentiment About AMD:

38 analysts are following Advanced Micro Devices and have set target prices ranging from $60 to $200 per share. On average, they have given the company a rating of buy. At today's prices, AMD is trading -28.04% away from its average analyst target price of $90.87 per share, implying an analyst consensus of strong upside potential for the stock. The company has a very low short interest since 1.9% of the company's shares are tied to short positions. Institutions own 70.5% of Advanced Micro Devices's shares, while the insider ownership rate stands at 0.35%. The biggest shareholder is Vanguard Group, Inc. with a 8.28% stake in the company worth approximately $10,219,844,544.00.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.