Intel Corporation is a leading manufacturer of semiconductor chips. The firm was incorporated in 1968 in Santa Clara, California, and represents one of the greatest success stories of the computer age.
Although Intel continues to grow, the industry in which it operates has matured, so there is some question whether the firm should be evaluated as a high-growth company or stable-growth company from now on.
For example, in December 2007, the firm's shares were trading for $20.88, and has a price-earnings ratio of 17.622.
Compared to Google Inc.'s price-earnings ratio of 53.71 on the same date, it would appear that the decision has already been made by the market.
Intel's expected earnings for 2007 were $1.13 per share, and its payout ratio was 48%. Furthermore, selected financial data for the sector, industry, and seven of the largest firms (including Intel) are found in Exhibit P8-9.1 on page 301.
Alternate View
| Sector: industrial goods |
16.606 |
14.94% |
1.48% |
0.87 |
50.471 |
5.40% |
75.481 |
| Industry: industrial equipment and components |
15.900 |
18.40% |
1.41% |
0.649 |
10.11 |
7.90% |
-134.9 |
| Emerson Electric Co. |
$34.61B |
19.276 |
23.72% |
2.40% |
0.494 |
4.257 |
9.54% |
65.156 |
| Parker-Hannifin Corp. |
9.81B |
14.150 |
18.16% |
1.20% |
0.308 |
2.298 |
8.25% |
34.392 |
| Roper Industries Inc. |
4.44B |
24.685 |
14.27% |
0.50% |
0.603 |
3.122 |
11.89% |
232.735 |
| Pentair Inc. |
3.23B |
17.943 |
11.56% |
1.70% |
0.485 |
1.974 |
4.48% |
147.667 |
| Walter Industries Inc. |
2.19B |
23.537 |
15.70% |
0.30% |
4.036 |
2.731 |
7.38% |
-10.682
|
a.
P/E=
ROE=
Dividend Yield=
LTD to Equity=
Price to Book=
Net Profit Margin=
Price to Cash Flow=
b.
Estimated cost of equity=
Estimated growth rate=
DCF Estimate of Share Price=
c.
Imputed growth rate=
d.
Estimated future dividends=
| Year |
Earnings |
Dividends |
| 2007 |
$ 1.13 |
|
| 2008 |
|
|
| 2009 |
|
|
| 2010 |
|
|
| 2011 |
|
|
Future growth rate
Value of Intel Shares (2-stage)
2007-2011 :
2011 and beyond :
Estimated equity value:
Attachment:- PROBLEM.rar