Intel DCF Analysis - Intrinsic Value

Investing
#1

If you are interested, I have recently completed a DCF model for Intel.

The base case scenario shows an average intrinsic value of $69.75.
DCF (5y) EBITDA Exit = $77.37
DCF (5y) Perpetual Growth = $62.15

I would be interested to hear your thoughts and if anyone else has completed a DCF model for Intel recently.

You can see my full Intel Valuation Analysis and model here:
IS INTEL A GOOD INVESTMENT? | Bull Headed Bear (bull-headed-bear.com)

NOTE: NOT Investment Advice - Sharing personal analysis based on personal assumptions.

4 Likes
#2

Thank you. As Intel is one of my largest and longest-held investments I am pleased to see you concluding that it may be attractive. My basis cost is $3.85 per share. Intel has been providing me with nice dividend income for many years.

#3

Thanks Richard. That is a nice cost basis!

#4

This is why I started buyng INTC:

  • Price < (Intrinsic Value - 20%).
  • Good P/E.
  • Good D/E (less than the sector average).
  • Good dividend (> 3%).
  • The CEO worked 30 years in Intel and want to invest in new technologies.
  • Between -1B$ an -2B$ cash flow in 2022 due to new investments (this means INTC could be cheaper in the future).
  • 5M$ stocks bought by insiders (directors and CEO) between october and november 2021 and 750K$ in february. Good.

I think this is all. I’m new in value investing and I have not calculated anything else.

CEO’s LinkedIn = https://www.linkedin.com/in/patgelsinger/
Insider’s transactions = INTC - Intel Corp - SEC Form 4 Insider Trading Screener - OpenInsider