Because of its leadership position, INTC may very well stay over priced for quite some time. Historically, if memory serves, INTC worst P/S ratio was 1.6 and its highest might have been as high 16, right now at about a P/S ratio of 4.5 we are closer to the bottom of this valuation metrics, but I think that a secular bear market will bring this even lower (possibly by having the price of the stock bound range between about $15 to $35 over a period of years, while sales increase again, for instance from the a more robust PC environment as well as from many other activities INTC has invested in in the last few years). Right now, I have already suggested that INTC could go to the $22 area in the next ramp, before it once more succumb to the weight of its excessive valuation.
Zeev
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