Intel Corporation (INTC)
Discount cash flow analysis
5% margin of safety What's this?
Sensitivity matrix
|
-1% |
Discount Rate % 0% |
1% |
||
|---|---|---|---|---|
| -1% | $18.45 | $18.23 | $18.02 | |
| Terminal Growth% | 0 | $18.52 | $18.30 | $18.08 |
| +1% | $18.58 | $18.36 | $18.14 |
How does a change in discount rate or terminal growth affect valuation?
This table shows the sensitivity of the valuation to two key variables - the discount rate and the terminal growth rate
Valuations and comments
- Valuecruncher created a new valuation of $22.23 (undervalued by 1.0%) - 5 hours ago
- GordonGekko created a new valuation of $22.22 (undervalued by 6.11%) - 6 days ago
- chmakar created a new valuation of $3.33 (overvalued by 84.1%) - 7 days ago
- apc1015 created a new valuation of $15.97 (overvalued by 19.67%) - 5 months ago
- apc1015 created a new valuation of $15.97 (overvalued by 19.67%) - 5 months ago
- apc1015 created a new valuation of $16.15 (overvalued by 18.76%) - 5 months ago
- tweakedmelon created a new valuation of $18.17 (overvalued by 3.3%) - 8 months ago
- SethWellbourne created a new valuation of $13.78 (overvalued by 8.13%) - 10 months ago
- SethWellbourne created a new valuation of $16.68 (undervalued by 13.32%) - 11 months ago
- afi created a new valuation of $17.58 (undervalued by 19.59%) - 1 year ago
- TheCrunchBlog created a new valuation of $17.92 (undervalued by 12.49%) - 1 year ago
- DharmaWarrior created a new valuation of $24.80 (undervalued by 33.69%) - 1 year ago
- acoy created a new valuation of $22.27 (overvalued by 2.15%) - 1 year ago
Comments
The boring details
| All amounts in millions | Figures |
| Enterprise Value: | 109,840 |
| Net Debt (Long-term borrowings less cash): | -11,699 |
| Equity Value: | 106,850 |
| Number of Shares Outstanding: | 5,522,000,000 |
| Calculated value per share: | $18.30 |
Enterprise Value is the present value of the post-tax cash flows for a business into the future.
Where:
- C1, C2, C3 - the cash flow in period 1, 2, 3, ...
- r - the discount rate
To capture the cash flows into the future a terminal value is calculated via a perpetuity calculation -
based on the final years forecast post-tax free cash flow.
Where:
- Cn - the cash flow in the final forecast period.
- LTG - the long-term growth rate
- r - the discount rate
- g - the terminal growth rate
The Capital Asset Pricing Model (CAPM) is used to determine the equity component in the discount rate.
Where:
- rt - the risk free rate
- t - the tax rate
- B - the beta of the company
- MRP - the Market Risk Premium
Valuecruncher uses an estimate of Weighted Average Cost of Capital (WACC) to determine the discount rate in the calculation.