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 54th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 15.33%. The most interesting components of our discounted cash flow analysis for Intel Corp ended up being:
INTC's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 25.63% of tickers in our DCF set.
The weighted average cost of capital for the company is 8. This value is greater than merely 13.32% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
JBL, QLYS, SYNA, AVNW, and GIB can be thought of as valuation peers to INTC, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
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Bluesea Research on Seeking Alpha | January 26, 2021