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Technology Stocks : Intel Corporation (INTC)
INTC 35.53-1.1%Nov 14 9:30 AM EST

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To: GVTucker who wrote (104708)6/21/2000 6:27:00 PM
From: kjhwang  Read Replies (1) of 186894
 
I am confused by your statements. I would have thought that your statement, "the multiple of book value" arises due to the concept of economic goodwill.

Hence, if a business cannot generate a ROI greater than an appropriate discount rate, then the business should be valued at 1xbook value (aside from various accounting tricks to reduce book value for tax purposes). Otherwise, a multiple is appropriate to factor in economic goodwill.

tci
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