#Free cash flow calculator full
#Free cash flow calculator free

Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for INTC's future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors. Risks: Be aware that Intel is showing 1 warning sign in our investment analysis, you should know about. Can we work out why the company is trading at a discount to intrinsic value? For Intel, we've put together three additional items you should further research: For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. It's not possible to obtain a foolproof valuation with a DCF model.

Whilst important, the DCF calculation ideally won't be the sole piece of analysis you scrutinize for a company. Paying a dividend but company is unprofitable. Good value based on P/S ratio and estimated fair value.ĭebt is not well covered by operating cash flow.

#Free cash flow calculator free

Has sufficient cash runway for more than 3 years based on current free cash flows. Shareholders have been diluted in the past year. SWOT Analysis for Intelĭividend is low compared to the top 25% of dividend payers in the Semiconductor market. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Beta is a measure of a stock's volatility, compared to the market as a whole. In this calculation we've used 11%, which is based on a levered beta of 1.552. Given that we are looking at Intel as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt.

#Free cash flow calculator full

The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) forecast We do this to reflect that growth tends to slow more in the early years than it does in later years. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. To start off with, we need to estimate the next ten years of cash flows. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model.Ĭheck out our latest analysis for Intel Step By Step Through The Calculation There's really not all that much to it, even though it might appear quite complex.Ĭompanies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. In this article we are going to estimate the intrinsic value of Intel Corporation ( NASDAQ:INTC) by estimating the company's future cash flows and discounting them to their present value. The US$32.11 analyst price target for INTC is 27% less than our estimate of fair value Intel's US$32.51 share price signals that it might be 26% undervalued Intel's estimated fair value is US$44.01 based on 2 Stage Free Cash Flow to Equity