Replies to post #17631 on Intel Corp (INTC)

[Tenchu]

Beamer, And if this is the case, Intel should be getting a P/E closer to 30.

What for? We're not exactly living in times of optimism, you know. (Part of it is manufactured, IMO, but that's a debate best left for the political threads.)

Hence the reason for INTC's belated move up, even after strong Q1 results. Better late than never, I suppose, but with interest rates rising, it's hard to see a P/E ratio of 30 being "fair" valuation, unless you expect INTC to blow away future earnings estimates by 50%.

Tenchu

[alaskaman]

wbmw, RE: "I still think Intel is undervalued.

At $27, the current P/E is 21.6 ($1.25 EPS - ttm, not 2004)."

On the other hand if AMD's P/E went down to around 20, like Intel's, their share price would be almost a penny stock...under 2 bucks anyway...I mean a P/E of around 180...what's that all about? the droids are probably just happy they even have a P/E ratio since earning for them have been as rare as hen's teeth historically. I smell tulips...and maybe buying a few droid Puts might be in order.

[Dan3]

Re: I still think Intel is undervalued.

Really?

Intel and AMD both make flash and CPUs (plus some other stuff, which is of minor import to either company.

Intel and AMD have about equal shares of the flash market.

Intel has 4 times the share AMD does in the CPU market.

Intel stock price (market cap) is priced 26 times as high as AMD's stock price.

Equalized for shares outstanding, Intel is priced at $422 and AMD is priced at $16 while Intel holds about a 4 to 1 market share advantage.