Intel Corp (INTC)

[FrancisUnderwood]

Intel's free cash flow this year is $8 billion or so, which is about what it what 17 years ago in 1999. So there's been no growth in FCF for 17 years, so Intel at best is worth just 10x its FCF, or $80 billion. That's another 30% drop from here to about $20 per share. In contrast, Apple's FCF in 2015 is $70 billion, up from $9-10 billion in 2009 when it had about the same yearly FCF as Intel (now almost 10x greater in just 6-7 years). Oh, how the paths of INTC and AAPL have diverged! Intel's multiple on its FCF is still overinflated by 50% while Apple's multiple on its FCF is underinflated by about 50-100%, so it doesn't take a genius to know which of the two will outperform over the next 5, 10, 20 years.