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General information
Intel Corporation designs, manufactures, and sells computer components and related products. The Company major products include microprocessors, chipsets, embedded processors and microcontrollers, flash memory, graphic, network and communication, systems management software, conferencing, and digital imaging products.
  • Bad financial results growth rate -9.8% (average between last period year over year growth for revenue and EBITDA), there is slowdown compared to average historical growth rates (11.4%)
  • Dividend yield for the last twelve months 3.0%
  • Free cash flow yield 8.0% (LTM)
  • Share price is 4.3% higher than minimum and 35.4% lower than maximum for the last 3 years
  • The company is undervalued by EV / LTM EBITDA multiple compared to target level (5.5x vs 8.5x)
  • Fundamental value created in LTM (estimate) -18.2%
Key Financials
Ticker: INTC
Share price, USD: 44.25
Common stocks: 4 350 000 000

Dividend Yield:  3.0%
FCF Yield LTM: 8.0%
EV / LTM EBITDA: 5.5x
Last revenue growth (y/y):  -4.5%
Last growth of EBITDA (y/y):  -15.1%
Historical revenue growth:  8.3%
Historical growth of EBITDA:  14.5%
Target EV / EBITDA (hist 75% percentile): 8.5x
Fundamental value created in LTM: -18.2%
EV / LTM EBITDA mutiple calculation
Market Cap ($m): 192 488
Net Debt ($m): 8 631
EV (Enterprise Value): 201 119
EBITDA LTM ($m): 36 442
EV / LTM EBITDA: 5.5x

Revenue and EBITDA

Quarterly values ($m)

Change (y/y)

Cash Flow

Free Cash Flow ($m)

Net Debt / Cash and Equivalents ($m)

Share price and dividends

Share price

Payment USD per share

Multiple and potential

EV / LTM EBITDA and 75% percentile

Potential dynamics

Value Creation

Fundamental Value Creation is calculated as ratio of value created in the last period to current market cap of the company.

The fundamental value can be created in two ways:
• cash generation in form of dividend payments or debt reduction or share buybacks
growth of the company enterprise value through improving financial results

The growth of enterprise value in the last period is estimated as product of:
• annualized increase of EBITDA in the last reporting period year over year
• relevant EV/EBITDA multiple (average between actual EV/EBITDA for the company and average general level of 10.0x is applied)

Parameter
#
Formula
Value
    
    
            EBITDA (pre LTM Q)
(1)
9 173
            EBITDA (last Q)
(2)
7 785
            EBITDA LTM
(3)
36 442
    
    
        EBITDA LTM / last Q
(4)
(3) / (2)
4.681
    Gain of EBITDA (mln $)
(5)
( (2)-(1) ) * (4)
-6 497
    
    
            EV
(6)
201 119
        Mult
(7)
(6) / (3)
5.5x
        Mult common
(8)
const
10.0x
    Mult avg
(9)
avgerage
7.8x
    
    
    Equity+
(10)
(5) * (9)
-50 415
    FCF LTM
(11)
15 418
    
    
Value+
(12)
(10) + (11)
-34 997
Cap
(13)
192 488
    
    
Fundamental value creation
(14)
(12) / (13)
-18.2%

Potential

EBITDA LTM       36 442
 
EBITDA E       35 969
Mult aim       8.5x
 
EV E       306 816
NetDebt corr       7 406
 
Cap E       299 410
Cap       192 488
Growth potential            55.5%