In discounted cash flow (DCF) valuation techniques the value of the stock is estimated based upon present value of some measure of cash flow. Free cash flow to the firm (FCFF) is generally described as cash flows after direct costs and before any payments to capital suppliers.
Paying users area
Try for free
Intel Corp. pages available for free this week:
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Current Ratio since 2005
- Price to Sales (P/S) since 2005
- Aggregate Accruals
The data is hidden behind: . Unhide it.
Get 1-month access^{} to Intel Corp. for $19.99, or
get full access^{} to the entire website for at least 3 months from $49.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Intrinsic Stock Value (Valuation Summary)
Year | Value | FCFF_{t} or Terminal value (TV_{t}) | Calculation | Present value at |
---|---|---|---|---|
0^{1} | FCFF_{0} | |||
1 | FCFF_{1} | = × (1 + ) | ||
2 | FCFF_{2} | = × (1 + ) | ||
3 | FCFF_{3} | = × (1 + ) | ||
4 | FCFF_{4} | = × (1 + ) | ||
5 | FCFF_{5} | = × (1 + ) | ||
5 | Terminal value (TV_{5}) | = × (1 + ) ÷ ( – ) | ||
Intrinsic value of Intel Corp. capital | ||||
Less: Debt (fair value) | ||||
Intrinsic value of Intel Corp. common stock | ||||
Intrinsic value of Intel Corp. common stock (per share) | ||||
Current share price |
Based on: 10-K (reporting date: 2021-12-25).
^{1} See details »
Disclaimer!
Valuation is based on standard assumptions. There may exist specific factors relevant to stock value and omitted here. In such a case, the real stock value may differ significantly form the estimated. If you want to use the estimated intrinsic stock value in investment decision making process, do so at your own risk.
Weighted Average Cost of Capital (WACC)
Value^{1} | Weight | Required rate of return^{2} | Calculation | |
---|---|---|---|---|
Equity (fair value) | ||||
Debt (fair value) | = × (1 – ) |
Based on: 10-K (reporting date: 2021-12-25).
^{1} US$ in millions
^{ } Equity (fair value) = No. shares of common stock outstanding × Current share price
= ×
=
^{ } Debt (fair value). See details »
^{2} Required rate of return on equity is estimated by using CAPM. See details »
^{ } Required rate of return on debt. See details »
^{ } Required rate of return on debt is after tax.
^{ } Estimated (average) effective income tax rate
= ( + + + + ) ÷ 5
=
WACC =
FCFF Growth Rate (g)
Based on: 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30).
^{1} See details »
2021 Calculations
^{2} Interest expense, after tax = Interest expense × (1 – EITR)
= × (1 – )
=
^{3} EBIT(1 – EITR)
= Net income + Interest expense, after tax
= +
=
^{4} RR = [EBIT(1 – EITR) – Interest expense (after tax) and dividends] ÷ EBIT(1 – EITR)
= [ – ] ÷
=
^{5} ROIC = 100 × EBIT(1 – EITR) ÷ Total capital
= 100 × ÷
=
^{6} g = RR × ROIC
= ×
=
FCFF growth rate (g) implied by single-stage model
g = 100 × (Total capital, fair value_{0} × WACC – FCFF_{0}) ÷ (Total capital, fair value_{0} + FCFF_{0})
= 100 × ( × – ) ÷ ( + )
=
where:
Total capital, fair value_{0} = current fair value of Intel Corp. debt and equity (US$ in millions)
FCFF_{0} = the last year Intel Corp. free cash flow to the firm (US$ in millions)
WACC = weighted average cost of Intel Corp. capital
Year | Value | g_{t} |
---|---|---|
1 | g_{1} | |
2 | g_{2} | |
3 | g_{3} | |
4 | g_{4} | |
5 and thereafter | g_{5} |
where:
g_{1} is implied by PRAT model
g_{5} is implied by single-stage model
g_{2}, g_{3} and g_{4} are calculated using linear interpoltion between g_{1} and g_{5}
Calculations
g_{2} = g_{1} + (g_{5} – g_{1}) × (2 – 1) ÷ (5 – 1)
= + ( – ) × (2 – 1) ÷ (5 – 1)
=
g_{3} = g_{1} + (g_{5} – g_{1}) × (3 – 1) ÷ (5 – 1)
= + ( – ) × (3 – 1) ÷ (5 – 1)
=
g_{4} = g_{1} + (g_{5} – g_{1}) × (4 – 1) ÷ (5 – 1)
= + ( – ) × (4 – 1) ÷ (5 – 1)
=