1 of 38

Securities Analysis

Current Price: US$ 78.09

Target Price: $ 95.97

Upside: 21%

Photography by Ravi C.

Ravi

Chailertborisuth

Christopher

Yeghiayan

Kaung

Thiha

2 of 38

SUMMARY

SALES

INDUSTRY

5FORCES

INVESTMENT

FINANCIALS

VALUATIONS

ESG

RISKS

​

​

$78

Feb 24th 2023

$96

TARGET PRICE

RECOMMENDATION: “AMD” is a “BUY”

​

+23%

Upside

Source: 5Sigma Analysis

3 of 38

SUMMARY

SALES

INDUSTRY

5FORCES

INVESTMENT

FINANCIALS

VALUATIONS

ESG

RISKS

​

​

KEY TAKEAWAYS

  • Product differentiation to sharpen competitive edge
  • Capturing growth in HPC and IOT applications
  • Positioned to capitalize on long-term economic trends

 

Focus on product differentiation to sharpen competitive edge

Capturing growth in HPC & IoT adoption across a range of industries

Positioned to capitalize on long-term economic trends

Source: 5Sigma Analysis, DeepAI.org

4 of 38

SUMMARY

SALES

INDUSTRY

P5F

INVESTMENT

FINANCIALS

VALUATIONS

ESG

RISKS

​

​

AMD: A DIVERSIFIED SEMICONDUCTOR DESIGNER

Source: 5Sigma Analysis, Company Data

Others

USA

China

Singapore

Taiwan

Japan

19%

26%

26%

29%

x

Client

Gaming

Embedded

Data Center

Kaung

5 of 38

US$ 24Bn

2022A Sales Breakdown

SUMMARY

SALES

INDUSTRY

5FORCES

INVESTMENT

FINANCIALS

VALUATIONS

ESG

RISKS

​

​

REVENUES CATALYZED FROM HIGH GROWTH INDUSTRIES

Source: 5Sigma Analysis, Company Data

Others

USA

China

Singapore

Taiwan

Japan

Data Centers

Client

19%

26%

26%

29%

Gaming

Embedded

+44%

$5Bn

$7Bn

$6Bn

$6Bn

$24Bn

6 of 38

Source: 5Sigma Analysis, ASML

SUMMARY

SALES

INDUSTRY

5FORCES

INVESTMENT

FINANCIALS

VALUATIONS

ESG

RISKS

​

​

AMD COMPETES AGAINST A CONCENTRATED GROUP OF COMPANIES

Midstream

Equipment

Manufacturing

Hardware

Services

Upstream

Downstream

Design

MAKE IT EASY, READABLE, CLEAN

ILLUSTRATIVE

7 of 38

SUMMARY

SALES

INDUSTRY

5FORCES

INVESTMENT

FINANCIALS

VALUATIONS

ESG

RISKS

​

​

RAPID TECHNOLOGICAL SHIFTS UNLOCKING HIGH GROWTH - ASML

Source: 5Sigma Analysis, ASML

Connected World

Cloud Services

Artificial

Intelligence

High speed Connectivity

Automation

Health Tech

Socio-Economic

Development

​

Renewable

Energy

Energy Transition

Smart-Mobility

8 of 38

SUMMARY

SALES

INDUSTRY

5FORCES

INVESTMENT

FINANCIALS

VALUATIONS

ESG

RISKS

​

​

AMD SCORES 66% IN PORTER'S FIVE FORCES, HIGHER THAN INDUSTRY AVERAGE

P5F

  • AMD VS. CUSTOMERS: CCC
  • AMD VS. SUPPLIERS: CCC
  • Threat of new entrants: look at no. of Semiconductor design companies over time
  • Competition in industry: ROIC, ROA
  • Threat of substitute products: Vertical integration ***give No. that reflects that

​

​

​

DRAFT P5F

AMD vs. Customers

Threat of New Entrants

Threat of Substitute

Competition in Industry

10

5

1

5

5

5

7

5

33

25

Source: 5Sigma Analysis, Porter’s 5 Forces

Total Score

AMD vs. Suppliers

10

5

Porter’s 5 Forces

Out of 50 pts

Highest = 10 pts, Lowest = 0 pts

9 of 38

SUMMARY

SALES

INDUSTRY

5FORCES

INVESTMENT

FINANCIALS

VALUATIONS

ESG

RISKS

​

​

Focus on product differentiation to sharpen competitive edge

Capturing growth in HPC & IoT adoption across a range of industries

Positioned to capitalize on long-term economic trends 

10 of 38

SUMMARY

SALES

INDUSTRY

5FORCES

INVESTMENT

FINANCIALS

VALUATIONS

ESG

RISKS

​

​

CAPTURING GROWTH IN HPC & IOT ACROSS A VARIETY OF INDUSTRIES

“AMD powers 15 of the top 20 most energy efficient super computers”

AMD CEO, Lisa Su

472

1119

Units: US$Bn

100% EXPECTED

MARKET GROWTH BY 2030

FLAG

9%

CAGR

Source: 5Sigma Analysis, ASML

472

1,119

9%

CAGR

Units: US$Bn

Semiconductor market growth rate % between 2020-2030

Semiconductor market growth between 2020-2030

11 of 38

KEY TAKEAWAYS

  • Product differentiation to sharpen competitive edge
  • Capturing growth in HPC and IOT applications
  • Positioned to capitalize on long-term economic trends

 

Focus on product differentiation to sharpen competitive edge

Capturing growth in HPC & IoT adoption across a range of industries

Positioned to capitalize on long-term economic trends 

Source: 5Sigma Analysis, DeepAI.org

SUMMARY

SALES

INDUSTRY

5FORCES

INVESTMENT

FINANCIALS

VALUATIONS

ESG

RISKS

​

​

12 of 38

62%

GROWTH

SUMMARY

SALES

INDUSTRY

P5F

INVESTMENT

FINANCIALS

VALUATIONS

ESG

RISKS

​

​

AMD’S FOCUS ON DIFFERENTIATION IS INCREASING ITS COMPETITIVE POSITION

Geekbench score

3%

CAGR

-1%

CAGR

Embedded systems growth

Data centers growth

Client Growth

Gaming growth

Lockheed Martin

Data Centers

Are companies SWITCHIng from AMD to Intel, or are they just using:

  1. Why is AMD increasing versus Intel?
  2. How do we know Intel is decreasing? <0 are customers switching or both. If customers are switching, then logic holds.
  3. Evidence that we see that Intel is decreasing

Embedded

Gaming

Client

Data Centers

2022

2027

x

Client

Gaming

Embedded

Data Center

Source: 5Sigma Analysis, Company Data

$ 24Bn

$ 39Bn

GET RIDE OF US$ AND MAKE IT $ & BELOW

AMD Sales Segment CAGR (2022-2027)

AMD Sales Forecast (2022-2027)

13 of 38

KEY TAKEAWAYS

  • Product differentiation to sharpen competitive edge
  • Capturing growth in HPC and IOT applications
  • Positioned to capitalize on long-term economic trends

 

Focus on product differentiation to sharpen competitive edge

Capturing growth in HPC & IoT adoption across a range of industries

Positioned to capitalize on long-term economic trends

Source: 5Sigma Analysis, DeepAI.org

SUMMARY

SALES

INDUSTRY

5FORCES

INVESTMENT

FINANCIALS

VALUATIONS

ESG

RISKS

​

​

14 of 38

SUMMARY

SALES

INDUSTRY

P5F

INVESTMENT

FINANCIALS

VALUATIONS

ESG

RISKS

​

​

POSITIONED TO CAPITALIZE ON LONG-TERM ECONOMIC TRENDS

Taiwan

Singapore

Japan

China

USA

3%

TERMINAL

GROWTH

2022 - 2027

Source: 5Sigma Analysis, Company Data, ASML

2021 sales from region

15 of 38

SUMMARY

SALES

INDUSTRY

P5F

INVESTMENT

FINANCIALS

VALUATIONS

ESG

RISKS

​

​

NATIONS ARE GUNNING FOR “TECHNOLOGICAL SOVEREIGNTY” - ASML

52

51

420

Tax breaks

4

$ 100+

BILLION

COMMITTED CAPITAL

AS OF 2023

China

USA

Taiwan

Singapore

Japan

POSITIONED TO CAPITALIZE ON LONG-TERM ECONOMIC TRENDS

Source: 5Sigma Analysis, Company Data, ASML

16 of 38

SUMMARY

SALES

INDUSTRY

P5F

INVESTMENT

FINANCIALS

VALUATIONS

ESG

RISKS

​

​

 

Price/Sales

EV/Sales

EV/EBITDA

P/FCF

P/E

QUALCOMM

3.44x

3.68x

11.03x

11.96x

13.68x

Intel

1.81x

2.08x

11.16x

-

54.73x

Texas Instruments

8.09x

8.03x

16.93x

40.18x

23.27x

Analog Devices

7.77x

8.06x

15.87x

19.67x

18.22x

Microchip Technology

5.86x

6.69x

13.13x

15.99x

14.14x

Marvell Tech

6.63x

7.40x

19.96x

27.01x

21.24x

ON Semiconductor

4.56x

4.82x

13.76x

27.03x

19.09x

NVIDIA

19.54x

19.55x

53.34x

127.93x

68.35x

AMD

5.92x

5.78x

19.09x

30.99x

26.84x

​

​

​

​

​

​

​

Market Average

​

​

​

Enterprise Value/Sales

180,329.76

​

​

​

​

Enterprise Value/EBITDA

134,103.10

​

​

​

​

Free Cashflow

199,938.71

​

​

​

​

Price to Sales

172,532.88

​

​

​

​

Earnings

163,610.34

​

​

​

​

Market Capitalization

135,479.19

​

​

​

​

Upside

26%

​

​

​

​

***basic quick comps, we will dress this up later

  1. Revenue buildup
  2. Sensitivity Analysis

EXPECTED MARGIN STABILITY & REVENUE GROWTH

Gross margin: 45.0%

R&D % sales: 17.5%

SG&A % sales: 10.2%

SALES CAGR: 9.62%

Revenue Growth

GPM

Source: 5Sigma Analysis, Company Data, ASML

NOTE: in Millions of Dollars

17 of 38

SUMMARY

SALES

INDUSTRY

P5F

INVESTMENT

FINANCIALS

VALUATION

ESG

RISKS

​

​

TWO-STAGE DISCOUNTED CASH FLOW VALUATION SUGGESTS: BUY

WACC

Terminal Growth

DCF TARGET: $85.83

Stage 2

$109Bn

Stage 1

$27Bn

Upside: 10%

Cost of Debt

Cost of Equity

WACC

TGR

2.1%

8.7%

8.57%

3.0%

Source: 5Sigma Analysis, Company Data, ASML

NOTE: All target prices in per share price

18 of 38

SUMMARY

SALES

INDUSTRY

P5F

INVESTMENT

FINANCIALS

VALUATION

ESG

RISKS

​

​

COMPARABLES ANALYSIS REAFFFIRMS AMD AS A BUY!

UPSIDE: 36%

+8%

+30%

+59%

+46%

+37%

Current Share

Price: $78

Source: 5Sigma Analysis

CHANGE COMPS TO 24 FEB, price-to-book & Make it

Clear & say : DISREGARD P/B: Tech investments= no book &

Price-to-book is irrelevant

 

Price/Sales

EV/Sales

EV/EBITDA

P/FCF

P/E

QUALCOMM

3.44x

3.68x

11.03x

11.96x

13.68x

Intel

1.81x

2.08x

11.16x

-

54.73x

Texas Instruments

8.09x

8.03x

16.93x

40.18x

23.27x

Analog Devices

7.77x

8.06x

15.87x

19.67x

18.22x

Microchip Technology

5.86x

6.69x

13.13x

15.99x

14.14x

Marvell Tech

6.63x

7.40x

19.96x

27.01x

21.24x

ON Semiconductor

4.56x

4.82x

13.76x

27.03x

19.09x

NVIDIA

19.54x

19.55x

53.34x

127.93x

68.35x

AMD

5.92x

5.78x

19.09x

30.99x

26.84x

​

​

​

​

​

​

​

Market Average

​

​

​

Enterprise Value/Sales

180,329.76

​

​

​

​

Enterprise Value/EBITDA

134,103.10

​

​

​

​

Free Cashflow

199,938.71

​

​

​

​

Price to Sales

172,532.88

​

​

​

​

Earnings

163,610.34

​

​

​

​

Market Capitalization

135,479.19

​

​

​

​

Upside

26%

​

​

​

​

 

Price/Sales

EV/Sales

EV/EBITDA

P/FCF

P/E

QUALCOMM

3.44

3.68

11.03

11.96

13.68

Intel

1.81

2.08

11.16

0

54.73

Texas Instruments

8.09

8.03

16.93

40.18

23.27

Analog Devices

7.77

8.06

15.87

19.67

18.22

Microchip Technology

5.86

6.69

13.13

15.99

14.14

Marvell Tech

6.63

7.4

19.96

27.01

21.24

ON Semiconductor

4.56

4.82

13.76

27.03

19.09

NVIDIA

19.54

19.55

53.34

127.93

68.35

Mkt Average

7.21

7.54

19.40

33.72

29.09

AMD

5.92

5.78

19.09

30.99

26.84

19 of 38

SUMMARY

SALES

INDUSTRY

P5F

INVESTMENT

FINANCIALS

VALUATIONS

ESG

RISKS

​

​

 

Price/Sales

EV/Sales

EV/EBITDA

P/FCF

P/E

QUALCOMM

3.44x

3.68x

11.03x

11.96x

13.68x

Intel

1.81x

2.08x

11.16x

-

54.73x

Texas Instruments

8.09x

8.03x

16.93x

40.18x

23.27x

Analog Devices

7.77x

8.06x

15.87x

19.67x

18.22x

Microchip Technology

5.86x

6.69x

13.13x

15.99x

14.14x

Marvell Tech

6.63x

7.40x

19.96x

27.01x

21.24x

ON Semiconductor

4.56x

4.82x

13.76x

27.03x

19.09x

NVIDIA

19.54x

19.55x

53.34x

127.93x

68.35x

AMD

5.92x

5.78x

19.09x

30.99x

26.84x

​

​

​

​

​

​

​

Market Average

​

​

​

Enterprise Value/Sales

180,329.76

​

​

​

​

Enterprise Value/EBITDA

134,103.10

​

​

​

​

Free Cashflow

199,938.71

​

​

​

​

Price to Sales

172,532.88

​

​

​

​

Earnings

163,610.34

​

​

​

​

Market Capitalization

135,479.19

​

​

​

​

Upside

26%

​

​

​

​

***basic quick comps, we will dress this up later

COMPARABLES ANALYSIS REAFFFIRMS AMD AS A BUY!

DCF TARGET: $85.83

COMPS: $106.10

+

$ 95.97

Per Share

20 of 38

PITCH

SALES

INDUSTRY

P5F

INVESTMENT

FINANCIALS

VALUATION

ESG

RISKS

​

​

Source: 5Sigma Analysis, Company Data

    • 50% reduction in water use

​

    • 30% increase in energy efficiency for AMD processors

​

    • 80% manufacturing partners source renewable energy

COMPARABLES ANALYSIS POINTS TOWARDS AMD BEING A BUY!

21 of 38

PITCH

SALES

INDUSTRY

P5F

INVESTMENT

FINANCIALS

VALUATION

ESG

RISKS

​

​

 

AMD

NVIDIA

Intel

S&P 500

Cumulative EPS FY2018-2022

6.09

8.44113

20.93

874.68

Cumulative DPS FY2018-2022

0

0.77

6.63

296.65

Total EPS retained *(Diluted)

6.09

7.67113

14.3

578.03

​

​

​

​

​

​

​

​

​

​

Share Price @ end February 2019

23.53

38.57

52.96

2747

Share Price @ 17 February 2023

78.5

213.88

27.61

4079

Change in Share Price

54.97

175.31

-25.35

1332

​

​

​

​

​

Value

9.03

22.85

-1.77

2.30

​

​

​

​

​

Warren Buffet: "We test the wisdom of retaining earnings by assessing whether retention, over time, delivers shareholders at least $1 of market value for each $1 retained."

Every dollar earned in RE = 9 market value

Every dollar earned in RE = 22 market value

Every dollar earned in RE = -1.7 market dollar

Every dollar earned in RE = 2.30 market value

*source: https://www.valueresearchonline.com/stories/51116/buffett-s-1-test/

​

AMD HAS TO COMPETE FIERCELY WITH NVIDIA & INTEL

Source: 5Sigma Analysis, Company Data

22 of 38

 

AMD

NVIDIA

Intel

S&P 500

Cumulative EPS FY2018-2022

6.09

8.44113

20.93

874.68

Cumulative DPS FY2018-2022

0

0.77

6.63

296.65

Total EPS retained *(Diluted)

6.09

7.67113

14.3

578.03

​

​

​

​

​

​

​

​

​

​

Share Price @ end February 2019

23.53

38.57

52.96

2747

Share Price @ 17 February 2023

78.5

213.88

27.61

4079

Change in Share Price

54.97

175.31

-25.35

1332

​

​

​

​

​

Value

9.03

22.85

-1.77

2.30

​

​

​

​

​

Warren Buffet: "We test the wisdom of retaining earnings by assessing whether retention, over time, delivers shareholders at least $1 of market value for each $1 retained."

Every dollar earned in RE = 9 market value

Every dollar earned in RE = 22 market value

Every dollar earned in RE = -1.7 market dollar

Every dollar earned in RE = 2.30 market value

*source: https://www.valueresearchonline.com/stories/51116/buffett-s-1-test/

​

AMD’S REGIONAL FOCUS AMPLIFIES RISK PROFILE

Legend

PITCH

SALES

INDUSTRY

P5F

INVESTMENT

FINANCIALS

VALUATION

ESG

RISKS

​

​

*NOT TO SCALE

Source: 5Sigma Analysis, Company Data

23 of 38

PITCH

SALES

INDUSTRY

P5F

INVESTMENT

FINANCIALS

VALUATIONS

ESG

RISKS

​

​

 

AMD

NVIDIA

Intel

S&P 500

Cumulative EPS FY2018-2022

6.09

8.44113

20.93

874.68

Cumulative DPS FY2018-2022

0

0.77

6.63

296.65

Total EPS retained *(Diluted)

6.09

7.67113

14.3

578.03

​

​

​

​

​

​

​

​

​

​

Share Price @ end February 2019

23.53

38.57

52.96

2747

Share Price @ 17 February 2023

78.5

213.88

27.61

4079

Change in Share Price

54.97

175.31

-25.35

1332

​

​

​

​

​

Value

9.03

22.85

-1.77

2.30

​

​

​

​

​

Warren Buffet: "We test the wisdom of retaining earnings by assessing whether retention, over time, delivers shareholders at least $1 of market value for each $1 retained."

Every dollar earned in RE = 9 market value

Every dollar earned in RE = 22 market value

Every dollar earned in RE = -1.7 market dollar

Every dollar earned in RE = 2.30 market value

*source: https://www.valueresearchonline.com/stories/51116/buffett-s-1-test/

​

HYPERCOMPETITIVE INDUSTRY WITH POTENTIAL FOR BIG UPSETS

​

https://www.macrumors.com/2023/01/05/amd-new-chips-against-m1-pro/

https://www.redhat.com/en/topics/linux/ARM-vs-x86

Total Market share for CPUs

Source: 5Sigma Analysis, Company Data

24 of 38

SUMMARY

SALES

INDUSTRY

P5F

INVESTMENT

FINANCIALS

VALUATIONS

ESG

RISKS

​

​

$78

Feb 24th 2023

$ 96

TARGET PRICE

RECOMMENDATION: “AMD” is a “BUY”

​

+23%

Upside

Source: 5Sigma Analysis

25 of 38

APPENDIX

Photography by Ravi C.

sss

26 of 38

APPENDIX

Photography by Ravi C.

sss

 

Price/Sales

EV/Sales

EV/EBITDA

P/FCF

P/E

QUALCOMM

3.44

3.68

11.03

11.96

13.68

Intel

1.81

2.08

11.16

0

54.73

Texas Instruments

8.09

8.03

16.93

40.18

23.27

Analog Devices

7.77

8.06

15.87

19.67

18.22

Microchip Technology

5.86

6.69

13.13

15.99

14.14

Marvell Tech

6.63

7.4

19.96

27.01

21.24

ON Semiconductor

4.56

4.82

13.76

27.03

19.09

NVIDIA

19.54

19.55

53.34

127.93

68.35

Mkt Average

7.21

7.54

19.40

33.72

29.09

AMD

5.92

5.78

19.09

30.99

26.84

​

Comps

Current

UPSIDE

Price/Free Cashflow

123.95

78.09

59%

Enterprise Value/Sales

113.66

78.09

46%

Price/Sales

106.96

78.09

37%

Price/Earnings

101.43

78.09

30%

Enterprise Value/EBITDA

84.50

78.09

8%

27 of 38

  • Product differentiation to sharpen competitive edge
  • Capturing growth in HPC and IOT applications
  • Positioned to capitalize on long-term economic trends

 

AGENDA

SUMMARY

SALES

INDUSTRY

P5F

PITCH

FINANCIALS

VALUATIONS

ESG

RISKS

​

​

28 of 38

SUMMARY

SALES

INDUSTRY

P5F

INVESTMENT

FINANCIALS

VALUATIONS

ESG

RISKS

​

​

REVENUES CATALYZED FROM HIGH GROWTH INDUSTRIES

Source: 5Sigma Analysis, Company Data

Others

USA

China

Singapore

Taiwan

Japan

19%

26%

26%

29%

Figures in $ Bn

$5 Bn

Embedded

29 of 38

SUMMARY

SALES

INDUSTRY

P5F

INVESTMENT

FINANCIALS

VALUATIONS

ESG

RISKS

​

​

REVENUES CATALYZED FROM HIGH GROWTH INDUSTRIES

Source: 5Sigma Analysis, Company Data

Others

USA

China

Singapore

Taiwan

Japan

19%

26%

26%

29%

Figures in $ Bn

Chris

$ 7Bn

Gaming

30 of 38

SUMMARY

SALES

INDUSTRY

P5F

INVESTMENT

FINANCIALS

VALUATIONS

ESG

RISKS

​

​

REVENUES CATALYZED FROM HIGH GROWTH INDUSTRIES

Source: 5Sigma Analysis, Company Data

Others

USA

China

Singapore

Taiwan

Japan

19%

26%

26%

29%

Figures in $ Bn

Chris

Client

$ 6 Bn

$5b

31 of 38

SUMMARY

SALES

INDUSTRY

P5F

INVESTMENT

FINANCIALS

VALUATIONS

ESG

RISKS

​

​

REVENUES CATALYZED FROM HIGH GROWTH INDUSTRIES

Source: 5Sigma Analysis, Company Data

Others

USA

China

Singapore

Taiwan

Japan

19%

26%

26%

29%

Figures in US$Bn

Chris

Data Centers

$ 6Bn

32 of 38

US$ 24Bn

US$ 39Bn

SALES 2022A

SUMMARY

SALES

INDUSTRY

P5F

INVESTMENT

FINANCIALS

VALUATIONS

ESG

RISKS

​

​

OVER 100% SALES GROWTH EXPECTED FROM INDUSTRY

Source: 5Sigma Analysis, Company Data

Others

USA

China

Singapore

Taiwan

Japan

SALES 2027F

19%

26%

26%

29%

Embedded

Gaming

Client

Data Centers

62%

GROWTH

HIDDEN

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SUMMARY

SALES

INDUSTRY

P5F

INVESTMENT

FINANCIALS

VALUATIONS

ESG

RISKS

​

​

SEMICONDUCTOR MARKET EXPECTED TO DOUBLE TO US$ 1T BY 2030

Ravi

Source: 5Sigma Analysis, ASML

472

1,119

9%

CAGR

Units: US$Bn

Semiconductor market growth rate % between 2020-2030

Semiconductor market growth between 2020-2030

34 of 38

SUMMARY

SALES

INDUSTRY

P5F

INVESTMENT

FINANCIALS

VALUATIONS

ESG

RISKS

​

​

RAPID TECHNOLOGICAL SHIFTS UNLOCKING HIGH GROWTH - ASML

Ravi

Source: 5Sigma Analysis, ASML

Placeholder

Connected world

Renewable Energy

Socio-Economic

development

Cloud services

Artificial

Intelligence

High speed connectivity

Energy Transition

Smart-Mobility

Automation

Healthtech

35 of 38

SUMMARY

SALES

INDUSTRY

P5F

INVESTMENT

FINANCIALS

VALUATIONS

ESG

RISKS

​

​

 

Price/Sales

EV/Sales

EV/EBITDA

P/FCF

P/E

QUALCOMM

3.44x

3.68x

11.03x

11.96x

13.68x

Intel

1.81x

2.08x

11.16x

-

54.73x

Texas Instruments

8.09x

8.03x

16.93x

40.18x

23.27x

Analog Devices

7.77x

8.06x

15.87x

19.67x

18.22x

Microchip Technology

5.86x

6.69x

13.13x

15.99x

14.14x

Marvell Tech

6.63x

7.40x

19.96x

27.01x

21.24x

ON Semiconductor

4.56x

4.82x

13.76x

27.03x

19.09x

NVIDIA

19.54x

19.55x

53.34x

127.93x

68.35x

AMD

5.92x

5.78x

19.09x

30.99x

26.84x

​

​

​

​

​

​

​

Market Average

​

​

​

Enterprise Value/Sales

180,329.76

​

​

​

​

Enterprise Value/EBITDA

134,103.10

​

​

​

​

Free Cashflow

199,938.71

​

​

​

​

Price to Sales

172,532.88

​

​

​

​

Earnings

163,610.34

​

​

​

​

Market Capitalization

135,479.19

​

​

​

​

Upside

26%

​

​

​

​

***basic quick comps, we will dress this up later

  1. Revenue buildup
  2. Sensitivity Analysis

POSITIONED TO CAPITALIZE ON LONG-TERM ECONOMIC TRENDS

Gross margin: 45.0%

R&D % sales: 17.5%

SG&A % sales: 10.2%

SALES CAGR: 9.62%

36 of 38

SUMMARY

SALES

INDUSTRY

P5F

INVESTMENT

FINANCIALS

VALUATION

ESG

RISKS

​

​

COMPARABLES ANALYSIS REAFFFIRMS AMD AS A BUY!

Put in $, clearly $ PER SHARE, reduce range of WACC

  1. Remove cents, round to dollar & put dollar sign in each box
  2. 2.75, 3, 3.75

WACC

Terminal Growth

NOTE: All target prices in Earnings per share (EPS)

DCF TARGET: $ 85.83

UPDATED

37 of 38

APPENDIX

Photography by Ravi C.

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38 of 38

APPENDIX

Photography by Ravi C.

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