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Strategies & Market Trends : Free Cash Flow as Value Criterion

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To: jbe who wrote (96)11/2/1997 11:18:00 PM
From: Andrew   of 253
 
Intel Discounted Future FCF Valuation
(see previous post for explanation)

Dollar figures in Millions

Category 1995 1996 1997

Net Earn. 3566 5157 7170
D&A 1371 1888 2200
Cap. Exp. -3550 -3024 -4450

FCF 1387 4021 4920
Options Cost -1000 -1300 -3000(???)
New FCF 387 2721 1920

# Shares 1642 1642 1636

Valuation (without options cost)

7%: $47
10%: $57
15%: $79

Valuation (with options cost)

7%: $18
10%: $22
15%: $31

Andrew
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