Skip to main content
No. of Recommendations: 1
Intel (INTC)
Initial numbers:
Recent price: $21.24
Discount: 15%
TTM FCF: $10,128 MM
# shares: 5,576 MM
Growth 1-5: 10.1%
Growth 5-10: 5.1%
Growth term: 2.5%
Recent history:
   1-year growth: 96.2%
   3-year annual: 12.1%

Not bad. Prefer a better price.


Power-One (PWER)
Initial numbers:
Recent price: $9.41
Discount: 15%
TTM FCF: $104 MM (ending 7/4/10)
# shares: 102.1 MM
Growth 1-5: 5.4%
Growth 5-10: 2.7%
Growth term: 2.5%

It reported earnings a bit over a week ago, tripling net income in the TTM period, compared to one back (that is, ending 10/3 vs ending 7/4). That alone would boost FCF, assuming there were relatively minor changes in the rest of the CFFO portion. Awaiting filing of the 10-Q to get a better handle on FCF.

Looked at this one about a month ago and liked what I saw. Recent Fool article: http://www.fool.com/investing/high-growth/2010/11/01/can-pow...

Cheers,
Jim
Print the post Back To Top
No. of Recommendations: 0
Hi Jim,

I was just introduced to this board via another poster on the DCF Valuation Lesson comments. Looks interesting!

Did you every circle back to your INTC analysis after they reported full year 2010? TTM FCF is now up to $11.5 billion and the 2011 dividend was increased by 15% (now yielding 3.6%), and the price has dropped another buck since your post.

I know you wrote you'd prefer a better price, maybe this gets you close when you consider the lower price and higher FCF? I think it's starting to look like a very compelling value.

Fletch
Print the post Back To Top
No. of Recommendations: 0
Did you every circle back to your INTC analysis after they reported full year 2010?

Hi Fletch,

Thanks for joining us here! Thanks, too, for bringing me back to this one. Here are the numbers:

3/28/11 11/8/10
Intel Corporation (INTC)
Latest stock price $20.34 $21.24

Predicted price $20.34 $21.24

Discount rate 15.0% 15.0%
TTM Earnings $11,485 $10,128
Growth 1-5 7.8% 10.1%
Growth 5-10 3.9% 5.1%
Growth term 0.0% 2.5%
# shares 5511.0 5576.0

Yeah, that's a pretty significant improvement. Removed the terminal growth and lowered the 1-10 year growth rates. Higher FCF was partially offset (to use management speak) by fewer shares. Definitely going to have to look at this one again.

Cheers,
Jim
Print the post Back To Top