Using the PEG framework with analyst consensus forward EPS growth of 25.0%, Advanced Micro Devices, Inc. has a fair value of $169.61 based on NTM EPS (FY2026) of $6.78. The current PEG ratio is 0.56.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
Growth above 25% is capped — hypergrowth may not be sustainable long-term.
| EPS Growth RateForward | 58.0% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| NTM EPS (FY2026) | $6.78 |
| Fair Value | $169.61 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $2.65 | — | — |
| FY2026E | $6.78 | +156.0% | 34 |
| FY2027E | $10.92 | +61.0% | 34 |
| FY2028E | $14.28 | +30.7% | 19 |
| FY2029E | $20.44 | +43.2% | 9 |
| FY2030E | $26.08 | +27.6% | 12 |
5Y Forward EPS CAGR: 58.0%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.
| Year | Net Income | EPS | YoY |
|---|
| FY2021 | $3.2B | $2.57 | — |
| FY2022 | $1.3B | $0.84 | -67.3% |
| FY2023 | $854.0M | $0.53 | -36.9% |
| FY2024 | $1.6B | $1.00 | +88.7% |
| FY2025 | $4.3B | $2.65 | +165.0% |
4Y Historical EPS CAGR: 0.8%