This paper presents the design and analysis of an inside-out axial-flux permanent-magnet (AFPM) synchronous machine optimized by genetic algorithm (GA) based sizing equation, finite element analysis (FEA) and finite volume analysis (FVA). The preliminary design is a 2-pole-pair slotted TORUS AFPM machine. The designed motor comprises sinusoidal back-EMF waveforms, maximum power density and the best heat removal. The GA is used to optimize the dimensions of the machine in order to achieve the highest power density. Electromagnetic field analysis of the candidate machines from GA with various dimensions is then put through FEA in order to obtain various motor characteristics. Based on the results from GA and FEA, new candidates are introduced and then put through FVA for thermal behavior evaluation of the designed motors. Techniques like modifying the winding configuration and skewing the permanent magnets are also investigated to attain the most sinusoidal back-EMF waveform and reduced cogging torque. The performance of the designed 1 kW, 3-phase, 50 Hz, 4-pole AFPM synchronous machine is tested in simulation using FEA software. It is found that the simulation results fully agree with the designed technical specifications. It is also found from FVA results that the motor temperature reaches at highest temperature to 87±C at the rated speed and full load under steady state condition.