Intel Corporation designs, manufactures, and sells integrated digital technology platforms worldwide. It operates through PC Client Group, Data Center Group, Internet of Things Group, Mobile and Communications Group, Software and Services, and All Other segments. The company was founded in 1968 and is based in Santa Clara, California.
INTC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Intel Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Intel Corp ranked in the 49th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for INTC, they are:
Intel Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -101.77. This coverage rate is greater than that of merely 1.94% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 10. This value is greater than 83.28% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as INTC, try CAMT, QLYS, VCRA, CTSH, and PANW.
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