Intrinsic value of Intel - INTC

Previous Close

$48.11

  Intrinsic Value

$38.87

stock screener

  Rating & Target

hold

-19%

Previous close

$48.11

 
Intrinsic value

$38.87

 
Up/down potential

-19%

 
Rating

hold

We calculate the intrinsic value of INTC stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 224.2

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  14.90
  13.91
  13.02
  12.22
  11.50
  10.85
  10.26
  9.74
  9.26
  8.84
  8.45
  8.11
  7.80
  7.52
  7.26
  7.04
  6.83
  6.65
  6.49
  6.34
  6.20
  6.08
  5.97
  5.88
  5.79
  5.71
  5.64
  5.58
  5.52
  5.47
Revenue, $m
  72,112
  82,143
  92,837
  104,179
  116,155
  128,753
  141,965
  155,786
  170,214
  185,253
  200,910
  217,198
  234,131
  251,729
  270,017
  289,021
  308,774
  329,311
  350,670
  372,893
  396,026
  420,117
  445,219
  471,386
  498,678
  527,156
  556,886
  587,936
  620,379
  654,291
Variable operating expenses, $m
  55,911
  63,171
  70,912
  79,122
  87,790
  96,909
  106,472
  116,476
  126,920
  137,806
  145,426
  157,215
  169,471
  182,210
  195,447
  209,203
  223,501
  238,366
  253,826
  269,912
  286,656
  304,094
  322,264
  341,205
  360,959
  381,573
  403,092
  425,567
  449,051
  473,597
Fixed operating expenses, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  55,911
  63,171
  70,912
  79,122
  87,790
  96,909
  106,472
  116,476
  126,920
  137,806
  145,426
  157,215
  169,471
  182,210
  195,447
  209,203
  223,501
  238,366
  253,826
  269,912
  286,656
  304,094
  322,264
  341,205
  360,959
  381,573
  403,092
  425,567
  449,051
  473,597
Operating income, $m
  16,202
  18,972
  21,925
  25,058
  28,365
  31,844
  35,493
  39,309
  43,294
  47,447
  55,485
  59,983
  64,659
  69,519
  74,570
  79,818
  85,273
  90,945
  96,844
  102,981
  109,369
  116,023
  122,955
  130,181
  137,719
  145,583
  153,794
  162,369
  171,328
  180,694
EBITDA, $m
  27,194
  30,977
  35,010
  39,287
  43,803
  48,554
  53,536
  58,748
  64,189
  69,860
  75,765
  81,907
  88,293
  94,929
  101,826
  108,992
  116,441
  124,186
  132,241
  140,621
  149,345
  158,430
  167,896
  177,764
  188,056
  198,795
  210,006
  221,716
  233,950
  246,739
Interest expense (income), $m
  682
  1,448
  1,886
  2,354
  2,853
  3,383
  3,942
  4,530
  5,146
  5,792
  6,465
  7,167
  7,898
  8,658
  9,449
  10,270
  11,124
  12,011
  12,933
  13,892
  14,889
  15,926
  17,006
  18,130
  19,302
  20,524
  21,798
  23,127
  24,515
  25,964
  27,479
Earnings before tax, $m
  14,754
  17,086
  19,571
  22,204
  24,982
  27,902
  30,963
  34,163
  37,503
  40,982
  48,318
  52,085
  56,001
  60,071
  64,300
  68,694
  73,262
  78,012
  82,952
  88,092
  93,443
  99,017
  104,824
  110,879
  117,195
  123,786
  130,667
  137,854
  145,364
  153,215
Tax expense, $m
  3,984
  4,613
  5,284
  5,995
  6,745
  7,534
  8,360
  9,224
  10,126
  11,065
  13,046
  14,063
  15,120
  16,219
  17,361
  18,547
  19,781
  21,063
  22,397
  23,785
  25,230
  26,735
  28,303
  29,937
  31,643
  33,422
  35,280
  37,221
  39,248
  41,368
Net income, $m
  10,770
  12,473
  14,287
  16,209
  18,237
  20,369
  22,603
  24,939
  27,377
  29,917
  35,272
  38,022
  40,881
  43,852
  46,939
  50,147
  53,482
  56,949
  60,555
  64,307
  68,214
  72,282
  76,522
  80,942
  85,552
  90,364
  95,387
  100,633
  106,116
  111,847

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  141,675
  161,382
  182,392
  204,675
  228,203
  252,954
  278,910
  306,062
  334,408
  363,955
  394,716
  426,715
  459,982
  494,556
  530,484
  567,821
  606,629
  646,976
  688,939
  732,599
  778,047
  825,377
  874,693
  926,102
  979,721
  1,035,670
  1,094,078
  1,155,080
  1,218,819
  1,285,444
Adjusted assets (=assets-cash), $m
  141,675
  161,382
  182,392
  204,675
  228,203
  252,954
  278,910
  306,062
  334,408
  363,955
  394,716
  426,715
  459,982
  494,556
  530,484
  567,821
  606,629
  646,976
  688,939
  732,599
  778,047
  825,377
  874,693
  926,102
  979,721
  1,035,670
  1,094,078
  1,155,080
  1,218,819
  1,285,444
Revenue / Adjusted assets
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
Average production assets, $m
  61,872
  70,479
  79,655
  89,386
  99,661
  110,470
  121,806
  133,664
  146,043
  158,947
  172,381
  186,356
  200,884
  215,983
  231,674
  247,980
  264,928
  282,549
  300,875
  319,942
  339,790
  360,460
  381,998
  404,449
  427,866
  452,300
  477,808
  504,449
  532,285
  561,381
Working capital, $m
  -144
  -164
  -186
  -208
  -232
  -258
  -284
  -312
  -340
  -371
  -402
  -434
  -468
  -503
  -540
  -578
  -618
  -659
  -701
  -746
  -792
  -840
  -890
  -943
  -997
  -1,054
  -1,114
  -1,176
  -1,241
  -1,309
Total debt, $m
  34,920
  43,591
  52,835
  62,640
  72,992
  83,883
  95,303
  107,250
  119,723
  132,723
  146,258
  160,337
  174,975
  190,188
  205,996
  222,424
  239,500
  257,253
  275,716
  294,927
  314,924
  335,749
  357,448
  380,068
  403,660
  428,278
  453,977
  480,818
  508,863
  538,178
Total liabilities, $m
  62,337
  71,008
  80,252
  90,057
  100,409
  111,300
  122,720
  134,667
  147,140
  160,140
  173,675
  187,754
  202,392
  217,605
  233,413
  249,841
  266,917
  284,670
  303,133
  322,344
  342,341
  363,166
  384,865
  407,485
  431,077
  455,695
  481,394
  508,235
  536,280
  565,595
Total equity, $m
  79,338
  90,374
  102,139
  114,618
  127,794
  141,654
  156,189
  171,395
  187,269
  203,815
  221,041
  238,960
  257,590
  276,951
  297,071
  317,980
  339,712
  362,307
  385,806
  410,256
  435,706
  462,211
  489,828
  518,617
  548,644
  579,975
  612,684
  646,845
  682,539
  719,848
Total liabilities and equity, $m
  141,675
  161,382
  182,391
  204,675
  228,203
  252,954
  278,909
  306,062
  334,409
  363,955
  394,716
  426,714
  459,982
  494,556
  530,484
  567,821
  606,629
  646,977
  688,939
  732,600
  778,047
  825,377
  874,693
  926,102
  979,721
  1,035,670
  1,094,078
  1,155,080
  1,218,819
  1,285,443
Debt-to-equity ratio
  0.440
  0.480
  0.520
  0.550
  0.570
  0.590
  0.610
  0.630
  0.640
  0.650
  0.660
  0.670
  0.680
  0.690
  0.690
  0.700
  0.710
  0.710
  0.710
  0.720
  0.720
  0.730
  0.730
  0.730
  0.740
  0.740
  0.740
  0.740
  0.750
  0.750
Adjusted equity ratio
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  10,770
  12,473
  14,287
  16,209
  18,237
  20,369
  22,603
  24,939
  27,377
  29,917
  35,272
  38,022
  40,881
  43,852
  46,939
  50,147
  53,482
  56,949
  60,555
  64,307
  68,214
  72,282
  76,522
  80,942
  85,552
  90,364
  95,387
  100,633
  106,116
  111,847
Depreciation, amort., depletion, $m
  10,993
  12,005
  13,085
  14,229
  15,438
  16,710
  18,044
  19,439
  20,895
  22,413
  20,280
  21,924
  23,633
  25,410
  27,256
  29,174
  31,168
  33,241
  35,397
  37,640
  39,975
  42,407
  44,941
  47,582
  50,337
  53,212
  56,213
  59,347
  62,622
  66,045
Funds from operations, $m
  21,763
  24,478
  27,372
  30,439
  33,675
  37,079
  40,647
  44,378
  48,272
  52,330
  55,552
  59,946
  64,514
  69,261
  74,194
  79,321
  84,650
  90,190
  95,952
  101,948
  108,189
  114,689
  121,463
  128,524
  135,889
  143,575
  151,599
  159,980
  168,738
  177,892
Change in working capital, $m
  -19
  -20
  -21
  -23
  -24
  -25
  -26
  -28
  -29
  -30
  -31
  -33
  -34
  -35
  -37
  -38
  -40
  -41
  -43
  -44
  -46
  -48
  -50
  -52
  -55
  -57
  -59
  -62
  -65
  -68
Cash from operations, $m
  21,781
  24,498
  27,393
  30,461
  33,699
  37,104
  40,673
  44,405
  48,301
  52,360
  55,583
  59,979
  64,548
  69,297
  74,231
  79,359
  84,689
  90,231
  95,995
  101,992
  108,235
  114,738
  121,513
  128,576
  135,944
  143,632
  151,659
  160,042
  168,803
  177,960
Maintenance CAPEX, $m
  -6,332
  -7,279
  -8,292
  -9,371
  -10,516
  -11,725
  -12,997
  -14,330
  -15,725
  -17,182
  -18,700
  -20,280
  -21,924
  -23,633
  -25,410
  -27,256
  -29,174
  -31,168
  -33,241
  -35,397
  -37,640
  -39,975
  -42,407
  -44,941
  -47,582
  -50,337
  -53,212
  -56,213
  -59,347
  -62,622
New CAPEX, $m
  -8,051
  -8,606
  -9,176
  -9,731
  -10,275
  -10,809
  -11,336
  -11,858
  -12,379
  -12,904
  -13,434
  -13,974
  -14,528
  -15,099
  -15,691
  -16,306
  -16,948
  -17,620
  -18,326
  -19,067
  -19,848
  -20,670
  -21,537
  -22,452
  -23,416
  -24,434
  -25,508
  -26,641
  -27,836
  -29,096
Cash from investing activities, $m
  -14,383
  -15,885
  -17,468
  -19,102
  -20,791
  -22,534
  -24,333
  -26,188
  -28,104
  -30,086
  -32,134
  -34,254
  -36,452
  -38,732
  -41,101
  -43,562
  -46,122
  -48,788
  -51,567
  -54,464
  -57,488
  -60,645
  -63,944
  -67,393
  -70,998
  -74,771
  -78,720
  -82,854
  -87,183
  -91,718
Free cash flow, $m
  7,399
  8,612
  9,926
  11,359
  12,908
  14,570
  16,341
  18,217
  20,196
  22,275
  23,450
  25,724
  28,095
  30,564
  33,130
  35,797
  38,567
  41,442
  44,428
  47,528
  50,747
  54,092
  57,569
  61,184
  64,945
  68,861
  72,939
  77,189
  81,620
  86,242
Issuance/(repayment) of debt, $m
  8,107
  8,671
  9,245
  9,805
  10,352
  10,890
  11,421
  11,947
  12,472
  13,000
  13,535
  14,079
  14,637
  15,213
  15,809
  16,428
  17,075
  17,753
  18,463
  19,211
  19,997
  20,825
  21,699
  22,620
  23,592
  24,618
  25,700
  26,841
  28,045
  29,315
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  8,107
  8,671
  9,245
  9,805
  10,352
  10,890
  11,421
  11,947
  12,472
  13,000
  13,535
  14,079
  14,637
  15,213
  15,809
  16,428
  17,075
  17,753
  18,463
  19,211
  19,997
  20,825
  21,699
  22,620
  23,592
  24,618
  25,700
  26,841
  28,045
  29,315
Total cash flow (excl. dividends), $m
  15,506
  17,284
  19,170
  21,163
  23,260
  25,460
  27,762
  30,164
  32,668
  35,276
  36,985
  39,804
  42,733
  45,776
  48,939
  52,226
  55,642
  59,195
  62,891
  66,738
  70,744
  74,917
  79,267
  83,804
  88,537
  93,478
  98,639
  104,030
  109,665
  115,556
Retained Cash Flow (-), $m
  -10,319
  -11,036
  -11,766
  -12,478
  -13,176
  -13,860
  -14,535
  -15,205
  -15,874
  -16,546
  -17,226
  -17,919
  -18,629
  -19,362
  -20,120
  -20,909
  -21,732
  -22,594
  -23,499
  -24,450
  -25,451
  -26,505
  -27,617
  -28,789
  -30,026
  -31,332
  -32,709
  -34,161
  -35,694
  -37,310
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  5,187
  6,248
  7,404
  8,685
  10,085
  11,600
  13,226
  14,959
  16,795
  18,730
  19,758
  21,884
  24,103
  26,415
  28,819
  31,317
  33,910
  36,601
  39,392
  42,288
  45,293
  48,412
  51,651
  55,015
  58,511
  62,147
  65,930
  69,868
  73,971
  78,247
Discount rate, %
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
  4,973
  5,719
  6,444
  7,151
  7,817
  8,419
  8,935
  9,350
  9,648
  9,819
  9,383
  9,339
  9,165
  8,868
  8,461
  7,958
  7,378
  6,740
  6,065
  5,374
  4,685
  4,017
  3,385
  2,802
  2,276
  1,813
  1,415
  1,081
  807
  589
Current shareholders' claim on cash, %
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Intel Corporation is engaged in designing and manufacturing products and technologies, such as the cloud. The Company's segments are Client Computing Group (CCG), Data Center Group (DCG), Internet of Things Group (IOTG), Non-Volatile Memory Solutions Group (NSG), Intel Security Group (ISecG), Programmable Solutions Group (PSG), All Other and New Technology Group (NTG). It delivers computer, networking and communications platforms to a set of customers, including original equipment manufacturers (OEMs), original design manufacturers (ODMs), cloud and communications service providers, as well as industrial, communications and automotive equipment manufacturers. It offers platforms to integrate various components and technologies, including a microprocessor and chipset, a stand-alone System-on-Chip (SoC), or a multichip package. The CCG operating segment includes platforms that integrates in notebook, two in one systems, desktop computers for consumers and businesses, tablets, and phones.

FINANCIAL RATIOS  of  Intel (INTC)

Valuation Ratios
P/E Ratio 22.1
Price to Sales 3.8
Price to Book 3.4
Price to Tangible Book
Price to Cash Flow 10.4
Price to Free Cash Flow 18.7
Growth Rates
Sales Growth Rate 7.3%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 29.3%
Cap. Spend. - 3 Yr. Gr. Rate -2.2%
Financial Strength
Quick Ratio 4
Current Ratio 0.4
LT Debt to Equity 31.2%
Total Debt to Equity 38.2%
Interest Coverage 20
Management Effectiveness
Return On Assets 10.1%
Ret/ On Assets - 3 Yr. Avg. 11.6%
Return On Total Capital 11.8%
Ret/ On T. Cap. - 3 Yr. Avg. 14.4%
Return On Equity 16.2%
Return On Equity - 3 Yr. Avg. 18.7%
Asset Turnover 0.6
Profitability Ratios
Gross Margin 60.9%
Gross Margin - 3 Yr. Avg. 62.4%
EBITDA Margin 36%
EBITDA Margin - 3 Yr. Avg. 40.6%
Operating Margin 21.5%
Oper. Margin - 3 Yr. Avg. 24.8%
Pre-Tax Margin 21.8%
Pre-Tax Margin - 3 Yr. Avg. 25.2%
Net Profit Margin 17.4%
Net Profit Margin - 3 Yr. Avg. 19.6%
Effective Tax Rate 20.3%
Eff/ Tax Rate - 3 Yr. Avg. 21.9%
Payout Ratio 47.7%

INTC stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the INTC stock intrinsic value calculation we used $62761 million for the last fiscal year's total revenue generated by Intel. The default revenue input number comes from 0001 income statement of Intel. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our INTC stock valuation model: a) initial revenue growth rate of 14.9% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for INTC is calculated based on our internal credit rating of Intel, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Intel.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of INTC stock the variable cost ratio is equal to 78.3%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for INTC stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for Intel.

Corporate tax rate of 27% is the nominal tax rate for Intel. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the INTC stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for INTC are equal to 85.8%.

Life of production assets of 8.5 years is the average useful life of capital assets used in Intel operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for INTC is equal to -0.2%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $69019 million for Intel - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 4660 million for Intel is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Intel at the current share price and the inputted number of shares is $224.2 billion.

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COMPANY NEWS

▶ [$$] Why PCs Still Compute   [Nov-16-18 07:52PM  The Wall Street Journal]
▶ Here's How Intel Will Profit From 5G   [06:45PM  Motley Fool]
▶ [$$] Stocks to Watch: Viacom, PG&E, Nvidia, Nordstrom   [09:03AM  The Wall Street Journal]
▶ Intel's Multibillion-Dollar Question   [08:00AM  Motley Fool]
▶ Why Intel Is Up Just 3% So Far in 2018   [07:51PM  Motley Fool]
▶ Intel Boosts Stock Buyback by $15 Billion   [06:53PM  TheStreet.com]
▶ Intel board OKs $15 billion share buyback   [05:57PM  MarketWatch]
▶ 3 Positives for Intel's Business in 2019   [08:30AM  Motley Fool]
▶ Why Apple Didn't Upgrade the iMac Last Month?   [Nov-14-18 04:36PM  Motley Fool]
▶ San Jose to draft privacy policies for smart city expansion   [09:45AM  American City Business Journals]
▶ Intel Rises 3%   [01:14PM  Investing.com]
▶ Intel Pulls In XMM 8160 5G Modem   [07:00AM  Motley Fool]
▶ Intel Falls 3%   [Nov-12-18 05:56PM  Investing.com]
▶ You should be worried about tech stocks, and heres why   [Nov-11-18 01:21PM  MarketWatch]
▶ 3 Risks to Intel's Business in 2019   [11:00AM  Motley Fool]
▶ How Micron Technology's Shares Fell 16.6% Last Month   [Nov-10-18 11:35PM  Motley Fool]
▶ Intel Just Revealed an Important Metric   [07:30AM  Motley Fool]
▶ 5 Dow Stocks to Sell (And 2 to Buy)   [10:39AM  Kiplinger]
▶ Intel's philanthropy head is the company's philanthropic 'connector'   [09:00AM  American City Business Journals]
▶ Scenes from the 2018 Makers and Manufacturing awards (photos)   [05:40PM  American City Business Journals]
▶ 50-years of Intel CEOs (infographic)   [02:13PM  American City Business Journals]
▶ [$$] Former Intel CEO Krzanich to Lead CDK Global   [Nov-07-18 07:57PM  The Wall Street Journal]
▶ [$$] AMDs Cloud Payoff Will ComeEventually   [07:57PM  The Wall Street Journal]
▶ Intel Announces New Data Center Chips   [06:29PM  Motley Fool]
▶ Intel Rises 3%   [06:00PM  Investing.com]
▶ Why Intel's search for a new CEO is dragging on   [04:27PM  American City Business Journals]
▶ Former Intel CEO takes new gig at CDK   [03:15PM  American City Business Journals]
▶ [$$] AMD's Cloud Payoff Will Come---Eventually   [02:19PM  The Wall Street Journal]
▶ Ex-Intel CEO Brian Krzanich to lead $2B software maker   [01:42PM  American City Business Journals]

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