New Value Analysis of Intel Corporation (NASDAQ:INTC) 2018
A new value analysis ofIntel Corporation (INTC:NASDAQ), a company listed in New York on the NASDAQ has been added to our research pages here. INTC designs and manufactures processors for computer system manufacturers. INTC also manufactures motherboard chipsets, network interface controllers and integrated circuits, flash memory, graphics chips, embedded processors and other devices related to communications and computing.
The main challenge when analysing INTC is how to assess the recent earnings release, which can be found here. The most recent earnings and the forecast for the full financial year 2018 would be a significant increase over prior years. In fact, if the expected earnings were to materialise the profits from INTC would be roughly double the profits in any of the three previous financial years.
Defensive value investors face a problem with assessing the cheapness or not of a common stock when earnings are so different from previous years. A common stock can look cheap in comparison to recent earnings, but expensive in comparison to a longer term average earnings level.
In the case of INTC the common stock looks expensive against longer term earnings, but cheap against current earnings. The problem can be solved by assessing how expensive the stock is against longer term earnings and how cheap the stock is against current earnings. If the stock is not too expensive against longer term earnings then there is a margin of safety for value investors. If the stock is anywhere between cheap or very cheap against current earnings then again, a defensive value investor has a margin of safety.