Intel is the largest chipmaker in the world. It develops and manufactures microprocessors and platform solutions for the global personal computer market.
In Chapter 8 of The Intelligent Investor, Benjamin Graham, the father of value investing, describes the concept of Margin of Safety:
Any investor, who’s main goal is to preserve capital, should seek, in all his or her investments, a significant difference between the current value of a business and the price in which the business can be bought. This insures protection in case of an unfavorable event and to maximize the investment return if the analysis is confirmed.
In the words of his disciple, Warren Buffett: “Never depend on a good sale. Get a purchase price so attractive that even a mediocre sale will produce good results.
We must be vigilant in maintaining price discipline. We purchase operating companies at 8-10 times Cash Flow.
Conclusion & Valuation
INTC has consistent rising dividends, almost zero debt, and bumpy but upward trending cash flow!
Buy up to Valuation = $19.60