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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 203.14-0.8%Jan 9 3:59 PM EST

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To: Windsock who wrote (63662)11/14/2001 11:11:56 AM
From: AK2004Read Replies (1) of 275872
 
Windsock <edited>
8% is an extremely generous discount rate for tech company, I'll be kind. So let us calculate how much 400mil/year forever worth:
simple perpetuity is $400/.08 = $5000mil
now lets compare this 5bil to Intel's market cap
If intel's market cap is below $5bil than it is probably under-priced <ggggg>

<edited> you can argue that intel is a growing company but in that case you have to take into acount incentive plans and more realistic risk premium (discount rate). You may even end up with slightly higher number.
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