Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 34.72

-2.3%

Nov 17 3:59 PM EST

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To: Michael Bakunin who wrote (92857)	11/19/1999 2:07:00 PM
From: Robert Douglas	Read Replies (1) of 186894

Michael, Just out of curiosity, I tried to duplicate your model. The value of the dividends in the first period ($350 million today and growing 20% a year for 16 years) discounted at 11.7% is practically irrelevant - about $10 billion. You said that Intel was only worth $200 billion, so that leaves the $190 billion present value of the remainder. The future value of $190 billion at 11.7% for 16 years is $1,116 billion. Your assumptions were that earnings grow 20% making earnings in year 16 of $129 billion or the company selling at roughly 9 times earnings. Way too cheap in my opinion.

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