Thank you Professor for this type of Intrinsic Value videos. Truly enjoy watching this and other recent IV videos on other stocks. Appreciate your valuable time to obtain the data
I dont see how AMD is overvalued. The only players in the GPU space are AMD and Nvidia, and thats it. No one else has any offerings that come close for comparison. The saying on the street is always “Nvidia is soooo far ahead”, yet the benchmarks never say that. Nvidia currently has a lock on the GPU market only due to being first to market, and its software, but should tread lightly because AMDs software is Open source and AMD GPUS are far cheaper while being only mariginally lower in output. Nvidia is at $3T market, vs AMD at $278 million. This is Tesla all over again where the lead over others is blown out of proportion and it seems that everybody is on board with Nvidia but cannot see that AMD is too close for comfot. AMD has consistently beat earnings for years now. You cannot build servers without CPUs, and AMD is far ahead as being the best choice. Even if we look at AMD as a CPU only company, they are undervalued as Intel was a 200 million market cap company. If there is ever a shift in software the market caps of AMD and Nvidia will get much closer to each others, ALAS Google vs Apple vs Microsoft.
Congratulations Parkev on your book! It takes hard work and dedication from start to finish, especially with editing. Will you publish it and make it available in bookstores later? Let it take the bestseller throne from Peter Lynch's One Up on Wall Street! :D
Thanks for the video Parkev. To clarify, the transition rate was applied to the "next five years" so 2030 to- 2034. Is the long term growth rate of 0.05 applied in any of the calculations for FCF?
@@parkevtatevosiancfa9544 how is terminal value calculated when transition rate is greater than WACC? The formula returns a negative number, so i opted for a lesser transition rate of 7.5%. I left the beta at 1.695 for the calculation of cost of equity. Calculating projected Free Cash Flows for the next 10 years... Year 2025: Projected FCF = $1.80B, Discounted PV = $1.63B Year 2026: Projected FCF = $2.40B, Discounted PV = $1.95B Year 2027: Projected FCF = $3.18B, Discounted PV = $2.35B Year 2028: Projected FCF = $4.23B, Discounted PV = $2.82B Year 2029: Projected FCF = $5.62B, Discounted PV = $3.38B Year 2030: Projected FCF = $6.05B, Discounted PV = $3.28B Year 2031: Projected FCF = $6.50B, Discounted PV = $3.19B Year 2032: Projected FCF = $6.99B, Discounted PV = $3.09B Year 2033: Projected FCF = $7.51B, Discounted PV = $3.00B Year 2034: Projected FCF = $8.07B, Discounted PV = $2.91B Terminal growth rate: 0.075 Terminal value: $269.13B Discounted terminal value: $97.16B Total present value of cash flows: $124.76B Price per share: 78.99806752799397 Current price: 171.02 This stock is overvalued!
This video needs a second explanation. Although you showed us the valuation varies depending on whether you use the latest free cash flow or wall street's old free cash flow, you did not tell us which one is more reasonable or more accurate to use. Would you please explain more about which free cash flow to choose? As you demonstrated this has a major impact on the valuation of the stock and whether one should buy it at the currect price. Right?
Thanks to the smartest RU-vid blogger I know of about a stock I am going to buy this Friday and also i am going to buy Broadcom. Most of my money is in Nvidia. ❤😂🎉
AMD is really overvalued and overhyped. Above 25 FP/E it is solid sell. They are way behind in GPUs overcrowded in CPU market, now trying to get their way into data centre market, which I don't know if they can.
Funny to watch and see you land on the same value per share to the dollar as I did. I will buy below $180 for all of Q4 as far as I can tell at the moment. Are there any good discords or people to follow on X for AMD? I find its hard to find the community.
