The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value. We use
analyst's estimates of cash flows going forward 5 years.
See our documentation to learn about this calculation.
|Levered FCF (USD, Millions)||$13,286.60||$14,191.19||$16,076.20||$16,685.79||$17,318.49|
|Source||Analyst x10||Analyst x8||Analyst x2||Extrapolated @ (3.79%)||Extrapolated @ (3.79%)|
Discounted (@ 10.38%)
Present value of next 5 years cash flows:
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $17,318 × (1 + 2.47%) ÷ (10.38% – 2.47%)
Terminal value based on the Perpetuity Method where growth (g) =
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows +
$194,403 = $57,451 + $136,952
Value = Total value / Shares Outstanding ($194,403 / 4,680)Discount to Share Price
Value per share:
Current discount (share price of $45.56): -9.68%
The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.
Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
Discount rate = 10.38% = 2.47% + (1.05 * 7.53%)
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value ($213,220,800,000).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
1.05 = 0.977 (1 + (1- 40%) (12.58%))
Levered Beta used in calculation = 1.05
Mr. Brian M. Krzanich has been the Chief Executive Officer of Intel Corporation since May 16, 2013. Mr. Krzanich served as the Chief Operating Officer of Intel Corporation from January 20, 2012 to May 16, 2013 and its Executive Vice President from November 2012 to May 16, 2013. He served as Senior Vice President of Intel Corporation from January 2010 to November 2012 and its General Manager of Manufacturing & Supply Chain until January 20, 2012 and also served as its Head of Worldwide Manufacturing. He was responsible for all aspects of Intel's factories and operations worldwide. He served as Vice President of Intel Corporation from December 2005 to January 2010. Mr. Krzanich served as General Manager of Manufacturing and Supply Chain of Intel Corporation. Mr. Krzanich was responsible for all aspects of Intel's assembly and test operations worldwide. Mr. Krzanich served as General Manager of Assembly/Test of Intel Corporation until 2010. He joined Intel in 1982. Since 2001, Mr. Krzanich has been responsible for the implementation of the 0.13-micron logic process technology across Intel's global factory network. From 1997 to 2001, Mr. Krzanich served as the Fab 17 plant manager, where he oversaw integrating Digital Equipment Corporation's semiconductor manufacturing operations into Intel's manufacturing network. The assignment included building updated facilities as well as initiating and ramping 0.18-micron and 0.13-micron process technologies. From 1996 to 1997, Mr. Krzanich was the Fab 6 plant manager in Arizona. From 1994 to 1996, he served as a Manufacturing Manager of Fab 12 in Arizona. He was a Process Engineer at various Intel locations. He has been a Director of Intel Corporation since May 16, 2013. He serves as a Director of MiaSole, Inc. Mr. Krzanich has been a Director of Deere & Company since January 6, 2016. Mr. Krzanich was presented an Intel Achievement Award in 1999. He holds one patent for semiconductor processing. Mr. Krzanich studied bachelor's degree in Chemistry from San Jose State University in 1982.
Average tenure and age of the Intel management team in years:
Average tenure and age of the Intel board of directors in years:
See our latest analysis for Intel 5 checks you should use to assess a dividend stock If you are a dividend investor, you should always assess these five key metrics: Is it the top 25% annual dividend yield payer? … The company currently pays out 52.76% of its earnings as a dividend, according to its trailing twelve-month data, meaning the dividend is sufficiently covered by earnings. … However, EPS should increase to $3.31, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment.Simply Wall St - – Full article
5-year cash flow forecast 2018 2019 2020 2021 2022 Levered FCF ($, Millions) $12,324.01 $14,985.52 $15,496.37 $16,024.64 $16,570.91 Source Analyst x12 Analyst x5 Extrapolated @ (3.41%) Extrapolated @ (3.41%) Extrapolated @ (3.41%) Present Value Discounted @ 10.44% $11,158.61 $12,285.37 $11,502.83 $10,770.13 $10,084.10 Present Value of 5-year Cash Flow (PVCF)= $55,801 The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = $16,571 × (1 + 2.5%) ÷ (10.4% – 2.5%) = $212,947 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = $212,947 / ( 1 + 10.4%)5 = $129,587 The total value is the sum of cash flows for the next five years and the discounted terminal value, which results in the Total Equity Value, which in this case is $185,388. … NasdaqGS:INTC Intrinsic Value Jan 24th 18 The assumptions I'd like to point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.Simply Wall St - – Full article
Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for INTC Price per share = $44.74 Earnings per share = $2.938 ∴ Price-Earnings Ratio = $44.74 ÷ $2.938 = 15.2x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … For example, if you accidentally compared higher growth firms with INTC, then INTC’s P/E would naturally be lower since investors would reward its peers’ higher growth with a higher price. … Alternatively, if you inadvertently compared less risky firms with INTC, INTC’s P/E would again be lower since investors would reward its peers’ lower risk with a higher price as well.Simply Wall St - – Full article
Margin Calculation for INTC Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 13.85 Billion ÷ 62.08 Billion = 22.31% There has been a contraction in Intel's margin over the past five years, as a result of 2.86% in average revenue growth and decline in net income of -0.59% on average, indicating that that a smaller percentage of revenue is being converted in to net income despite the top line growth. … Understanding what could be driving Intel's future earnings Based on future expectations, INTC's profit margin will shift towards expansion, with an expectation of 3.37% in annual revenue growth and 4.60% earnings growth expected annually. … But as a result of improved cost efficiency, net income growth is expected to exceed revenue growth, which is causing the expectation for margins to expand.Simply Wall St - – Full article
How does INTC’s operating cash flow stack up against its debt? … NasdaqGS:INTC Historical Debt Dec 13th 17 A basic way to evaluate INTC's debt management is to see whether the cash flow generated from the business is at a relatively high level compared to the debt capital invested. … INTC’s recent operating cash flow was 0.73 times its debt within the past year.Simply Wall St - – Full article
Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of INTC’s equity capital deployed. … Since INTC’s return covers its cost in excess of 9.80%, its use of equity capital is efficient and likely to be sustainable. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NasdaqGS:INTC Last Perf Nov 17th 17 The first component is profit margin, which measures how much of sales is retained after the company pays for all its expenses.Simply Wall St - – Full article
The current payout ratio for the stock is 36.25%, meaning the dividend is sufficiently covered by earnings. … If there's one type of stock you want to be reliable, it's dividend stocks and their stable income-generating ability. … Whether or not you like INTC as a dividend stock, it's still worth checking the price tag.Simply Wall St - – Full article
NasdaqGS:INTC Past Future Earnings Oct 27th 17 For a more normalized comparison to its past performance, so that some one-off extraordinary elements don't impact the assessment, I weigh INTC's past year EPS growth against a best-fit version of its average annual growth in EPS over the past five years. … INTC's EPS growth over the past year exceeded the long-term average of 1.03%, indicating that it delivered a better earnings growth than projected by its track record. … Over the past 12 months of recorded data, not only did INTC's EPS growth of 25.79% beat long-term average, it also exceeded the Semiconductors and Semiconductor Equipment industry average of 23.15%, indicating an acceptable competitive positioning.Simply Wall St - – Full article
Intel Corporation designs, manufactures, and sells computer, networking, data storage, and communication platforms worldwide. The company operates through Client Computing Group, Data Center Group, Internet of Things Group, Non-Volatile Memory Solutions Group, Programmable Solutions Group, and All Other segments. Its platforms are used in notebooks, desktops, and wireless and wired connectivity products; enterprise, cloud, and communication infrastructure market segments; and retail, automotive, industrial, and various other embedded applications. The company offers microprocessors, and system-on-chip and multichip packaging products. It also provides NAND flash memory products primarily used in solid-state drives; and programmable semiconductors and related products for communications, data center, industrial, military, and automotive markets. In addition, the company develops computer vision and machine learning, data analysis, localization, and mapping for advanced driver assistance systems and autonomous driving. It serves original equipment manufacturers, original design manufacturers, industrial and communication equipment manufacturers, and cloud service providers. The company was founded in 1968 and is based in Santa Clara, California.
2200 Mission College Boulevard,
|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|NasdaqGS||INTC||Common Stock||Nasdaq Global Select||US||USD||20. Nov 1972|
|DB||INL||Common Stock||Deutsche Boerse AG||DE||EUR||20. Nov 1972|
|XTRA||INL||Common Stock||XETRA Trading Platform||DE||EUR||20. Nov 1972|
|SWX||INTC||Common Stock||SIX Swiss Exchange||CH||CHF||20. Nov 1972|
|SEHK||4335||Common Stock||The Stock Exchange of Hong Kong Ltd.||HK||HKD||20. Nov 1972|
|ENXTBR||INCO||Common Stock||Euronext Brussels||BE||USD||20. Nov 1972|
|WBAG||INTC||Common Stock||Wiener Boerse AG||AT||EUR||20. Nov 1972|
|SNSE||INTC||Common Stock||Santiago Stock Exchange||CL||USD||20. Nov 1972|
|BVC||INTC||Common Stock||Bolsa de Valores de Colombia||CO||COP||20. Nov 1972|
|BMV||INTC *||Common Stock||Bolsa Mexicana de Valores||MX||MXN||20. Nov 1972|
|BOVESPA||ITLC34||BDR EACH REPR 1 COM SH||Bolsa de Valores de Sao Paulo||BR||BRL||23. Aug 2012|
|BASE||INTC||CEDEARS (EACH 5 REP 1 COM USD0.001)||Buenos Aires Stock Exchange||AR||ARS||14. Apr 1999|
|Company Analysis updated:||2018/02/18|
|Last estimates confirmation:||2018/02/17|
|Last earnings update:||2017/12/30|
|Last annual earnings update:||2017/12/30|
All dates in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.