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Advanced Micro Devices (AMD) — WACC Analysis

WACC Breakdown

Advanced Micro Devices (AMD) has a weighted average cost of capital (WACC) of 12.1%. The cost of equity is 12.2%, derived from a beta of 2.14 and a risk-free rate of 4.7%. The after-tax cost of debt is 3.6%. The capital structure is 99.6% equity and 0.4% debt.

Interpretation

A WACC of 12.1% indicates that the market perceives Advanced Micro Devices as higher-risk, requiring a greater return to compensate investors.

Investors can compare AMD's WACC of 12.1% against industry peers to gauge its relative financing costs. A beta of 2.14 reflects the stock's volatility relative to the broader market.

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VALUATION

AMD WACC: 12.15% for Advanced Micro Devices

Current inputs imply a 12.18% cost of equity and a 4.56% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Advanced Micro Devices Common Stock (AMD) WACC Results
Weighted Average Cost of Capital
12.15%
Cost of Equity
12.18%
Risk-Free Rate4.74%
Beta2.14
Market Risk Premium4.23%
Cost of Debt
3.60%
Pre-Tax Cost of Debt4.56%
Tax Rate21.00%
Tax Shield0.96%
Capital Structure
Equity: 99.58%($772.57B)
Debt: 0.42%($3226.00M)
Equity Component
12.13%
99.58% × 12.18%
Debt Component
0.01%
0.42% × 3.60%

Advanced Micro Devices (AMD) WACC in context

Advanced Micro Devices (AMD) currently screens with an estimated WACC of 12.15%. That blends a 12.18% cost of equity, a 4.56% pre-tax cost of debt, and a 99.58% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

What AMD WACC implies

A 12.15% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates AMD

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 2.14 and equity accounts for 99.58% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.

AMD WACC: 12.15% — Advanced Micro Devices Cost of Capital (August 2026) | DeepViews