Discounted Cash Flow (DCF) Analysis Unlevered

Intel Corporation (INTC)

$27.95

-0.21 (-0.75%)

All numbers are in Millions, Currency in USD

Stock DCF: 38.45 | 27.95 | undervalue

Operating Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	70,848	71,965	77,867	79,024	63,054	61,643.90	60,265.33	58,917.59	57,600	56,311.86
Revenue (%)
EBITDA	32,870	35,373	37,946	34,092	20,803	27,174.31	26,566.60	25,972.48	25,391.65	24,823.81
EBITDA (%)
EBIT	23,785	24,547	25,707	22,300	7,768	17,412.47	17,023.07	16,642.38	16,270.20	15,906.34
EBIT (%)
Depreciation	9,085	10,826	12,239	11,792	13,035	9,761.84	9,543.53	9,330.11	9,121.45	8,917.47
Depreciation (%)

Balance Sheet Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Total Cash	11,650	13,123	23,895	28,413	28,338	18,032.46	17,629.20	17,234.95	16,849.52	16,472.70
Total Cash (%)
Account Receivables	6,722	7,659	6,782	9,457	4,133	5,839.19	5,708.61	5,580.94	5,456.13	5,334.11
Account Receivables (%)
Inventories	7,253	8,744	8,427	10,776	13,224	8,361.25	8,174.26	7,991.46	7,812.74	7,638.02
Inventories (%)
Accounts Payable	3,824	4,128	5,581	5,747	9,595	5,028.97	4,916.51	4,806.56	4,699.07	4,593.98
Accounts Payable (%)
Capital Expenditure	-15,181	-16,213	-14,453	-20,329	-24,844	-15,736.94	-15,385.01	-15,040.95	-14,704.58	-14,375.74
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 27.95
Beta	0.765
Diluted Shares Outstanding	4,123
Cost of Debt
Tax Rate	-3.17
After-tax Cost of Debt	5.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.116
Total Debt	42,051
Total Equity	115,237.85
Total Capital	157,288.85
Debt Weighting	26.73
Equity Weighting	73.27
Wacc

Build Up Free Cash

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	70,848	71,965	77,867	79,024	63,054	61,643.90	60,265.33	58,917.59	57,600	56,311.86
EBITDA	32,870	35,373	37,946	34,092	20,803	27,174.31	26,566.60	25,972.48	25,391.65	24,823.81
EBIT	23,785	24,547	25,707	22,300	7,768	17,412.47	17,023.07	16,642.38	16,270.20	15,906.34
Tax Rate	9.71%	12.51%	16.66%	8.46%	-3.17%	8.83%	8.83%	8.83%	8.83%	8.83%
EBIAT	21,475.56	21,475.82	21,423.18	20,414.52	8,014	15,874.14	15,519.14	15,172.08	14,832.78	14,501.07
Depreciation	9,085	10,826	12,239	11,792	13,035	9,761.84	9,543.53	9,330.11	9,121.45	8,917.47
Accounts Receivable	-	-937	877	-2,675	5,324	-1,706.19	130.58	127.66	124.81	122.02
Inventories	-	-1,491	317	-2,349	-2,448	4,862.75	186.99	182.80	178.72	174.72
Accounts Payable	-	304	1,453	166	3,848	-4,566.03	-112.46	-109.95	-107.49	-105.09
Capital Expenditure	-15,181	-16,213	-14,453	-20,329	-24,844	-15,736.94	-15,385.01	-15,040.95	-14,704.58	-14,375.74
UFCF	15,379.56	13,964.82	21,856.18	7,019.52	2,929	8,489.58	9,882.77	9,661.76	9,445.69	9,234.45
WACC
PV UFCF						7,967.69	8,705.06	7,987.22	7,328.58	6,724.25
SUM PV UFCF										38,712.80

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.55
Free cash flow (t + 1)	9,419.14
Terminal Value	207,014
Present Value of Terminal Value	150,741.37

Intrinsic Value

Enterprise Value	189,454.17
Net Debt	30,907
Equity Value	158,547.17
Shares Outstanding	4,123
Equity Value Per Share	38.45