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To: TimF who wrote (1211)7/19/2000 3:48:00 PM
From: Paul EngelRead Replies (2) | Respond to of 275872
 
Re "Banks and venture capital firms tend to have lower P/Es then semi-conductor firms. Should Intel be valued with a typical P/E of a bank? Maybe its a really good bank so we give it a higher P/E say 20..."

Sure.

Intel earned $2.34 BILLION from banking activities last quarter - so lets assume a good upside of say $4 BILLION/year earnings from banking activites.

After taxes, that comes to $2.8 Billion in earnings, or $2.8 Billion/3.5 Billion shares = $0.80/share

At 20X EPS, that should ADD $16 to Intel's stock !!!

Paul