Advanced Micro Devices (NASDAQ:AMD) has been one of the best semiconductor trades of the past decade. Investors who bought in at $2.53 in January 2013 saw the stock skyrocket 8,456%, hitting an all-time high of $211 in March 2024.
However, after that meteoric rise, the rally finally lost steam.
The reason? Well, the stock became overvalued, according to our Fair Value metrics.
On January 26, 2024, Fair Value flagged AMD as overvalued, predicting a potential 36.07% downside. The stock then failed to break out and instead entered a prolonged downtrend, ultimately losing 36.81% over the next 13 months.
How do you protect your portfolio from the next AMD before it’s too late?
Simple: Use Fair Value to identify potentially overvalued stocks in your portfolio before they lead to significant losses:
On the flip side, uncover hidden gems: Use Fair Value to reveal undervalued stocks the market has overlooked, potentially finding your next big winner:
Bottom line, Fair Value acts as both an early warning system to protect your portfolio and a powerful tool to help you find your next big investment idea.
Think of it as bullet-proofing your watchlist or portfolio to see which stocks may be over- or undervalued!
How does our Fair Value work?
Comprehensive Analysis: Fair Value averages 17 different industry-recognized valuation models, ensuring a comprehensive and accurate estimate of any stock.
Transparent Calculations: The settings of each model are fully transparent. You can see exactly how the fair value has been calculated per each model and even customize the settings to your own needs.
Uncertainty Level: Each result is accompanied by an uncertainty level, based on considerations such as the company’s price volatility, profitability, and the number of available models.
Relevant Models: We only use relevant models for each sector. For instance, banks and REITs are evaluated using models that accurately reflect their unique operations.
Reliability Check: If a model provides a drastically different price from the market, it may be excluded from our Fair Value analysis due to low reliability.