FM

Company Name:
Student Name (s)______________
1. Financial Statements and Ratios, including analysis

Possible Scores
Professor's Comments:
2. Ratio comparison and analysis

Possible Scores
3. DuPont Analysis and Interpretation (3 Years)

Possible Scores
4. Value Line Spread sheet and analysis

Possible Scores
5. Intrinsic Value (Forecasting) Model and Analysis with ML, OPT., PESS
Possible Scores
6. Graham Model
Possible Scores
7. Buffett Model and Analysis with Interpretation ...

Possible Scores
8. ROE Model and Analysis with Interpretation

Possible Scores
9. Final Analysis. Is it consistent with the resto of your analysis and inte
Does the logic flow from your previous discussion and wha
Possible Scores
135 PROJECT GRADE SHEET
mpany Name:
udent Name (s)_______________________________________________________
ding analysis
2
Your Score
10
10
..
4
10
12
15
15
15
15
Years)..
1
.
4
10
12
d Analysis with ML, OPT., PESS.....
10
10
10
10
10
10
retation ....
2
ation .
2
resto of your analysis and interpretation?
r previous discussion and what is your recommendation?

4
12
16
20
TOTAL
20
100
Intel Corporation
An Analysis of Intel
Presented by: St
About I
Intel Corporation engages in the design, manufacture, and sale of integrated circuits for computing and comm
desktops, servers, workstations, storage products, embedded applications, communications products, consum
integrate its core processing functionalities with other system components, such as graphics, audio, and vide
microprocessor and input, display, and storage devices, including keyboard, mouse, monitor, hard drive, and
and that has connectors for attaching devices to the bus; and wired and wireless connectivity products consis
networks. Further, the company provides NAND flash memory products primarily used in portable memory st
operating systems, middleware, and tools used to develop, run, and manage various enterprise, consumer, e
applications. Additionally, it develops computing platforms, which are integrated hardware and software com
principally to original equipment manufacturers, original design manufacturers, PC components and other pro
strategic alliance with Scientific Conservation Inc. Intel Corporation was founded in 1968 and is based in San
Mission Statement: This decade we will create and extend computing technology to connect and enrich the li
earth.
History: Intel, founded in 1968 to build computer memory products, introduced the world's first microprocess
employee base of 82,500 (as of 2010) with about 55% of those employees living in the United States.
Objectives:
Grow PC and Datacenter business with new users and uses
Extend Intel Solutions to win in adjacent market segments
Create a continuum of secure, personal computing experiences
Care for our people, the planet, and inspire the next generation
Board of Directors
CEO: Paul S. Otellini is president and chief executive officer of Intel Corporation. He became the company's fi
succeeding Craig R. Barrett. Otellini previously had served as Intel's president and chief operating officer, pos
the same year he was elected to Intel's board of directors.
Executive Vice President: Andy D. Bryant is executive vice president, Technology, Manufacturing and Enterpri
administrative officer of Intel Corporation. He is responsible for technology development and manufacturing,
human resources, information technology and e-business functions and activities worldwide.
Executive Vice President: Sean Maloney is executive vice president and Chairman of Intel China. Pr
Maloney served as co general manager of the Intel Architecture Group since September 2009. He h
1982.
Executive Vice President: David (Dadi) Perlmutter is executive vice president and general manager
Intel Architecture Group (IAG). He is responsible for Intel's platform solutions for all computing segm
centers, desktops, laptops, netbooks, handhelds, embedded devices, and consumer electronics.
Executive Vice President: Arvind Sodhani is executive vice president of Intel Corporation and presid
Sodhani was elected vice president by the board of directors in May 1990, served as senior vice pre
2007 and was promoted to executive vice president in December 2007.
alysis of Intel Stock Potential
esented by: Student Name
About Intel
s for computing and communications industries worldwide. It offers microprocessor products used in notebooks, netbooks,
nications products, consumer electronics devices, and handhelds. The company also provides system on chip products that
graphics, audio, and video, onto a single chip. In addition, it offers chipset products that send data between the
, monitor, hard drive, and CD, DVD, or Blu-ray drives; motherboards designed for desktop, server, and workstation platform
nnectivity products consisting of network adapters and embedded wireless cards used to translate and transmit data acros
ed in portable memory storage devices, digital camera memory cards, and solid-state drives; software products comprisin
s enterprise, consumer, embedded, and handheld devices; and software development tools that enable the creation of
rdware and software computing technologies designed to offer an optimized solution. The company sells its products
components and other products users, and other manufacturers of industrial and communications equipment. It has a
1968 and is based in Santa Clara, California.
connect and enrich the lives of every person on
world's first microprocessor in 1971. Intel has an

the United States.
Values:
Customer orientation
Results orientation
Great place to work
Quality Discipline
became the company's fifth CEO on May 18, 2005,

chief operating officer, positions he held since 2002,
anufacturing and Enterprise Services, and chief

ment and manufacturing, financial operations,
orldwide.
irman of Intel China. Prior to his current role,

e September 2009. He has been with Intel since
t and general manager of Intel Corporation's

s for all computing segments including data
onsumer electronics.
Corporation and president of Intel Capital.

erved as senior vice president from 2005 to
used in notebooks, netbooks,

s system on chip products that
d data between the
erver, and workstation platforms,
nslate and transmit data across
s; software products comprising
that enable the creation of
ompany sells its products
ations equipment. It has a
Intel Corporation
RATIOS
Short term solvency ratios

Current Ratio
Quick Ratio
Cash Ratio
Net Working Capital to Current Liabilities
Asset Utilization or Turnover ratios
Average Collection Period
Inventory Turnover Ratios
Receivable Turnover
Fixed Asset Turnover
Total Asset Turnover
Financial Leverage ratios
Total Debt Ratio (TD/TA)
Debt/Equity
Equity Ratio (TE/TA)
Long-term Debt Ratio (LTD/TA)
Times Interest Earned Ratio (EBIT/TI) there are no interest payments
Profitability ratios
Gross Profit Margin
Net Profit Margin
ROA (NI/TA)
ROE (NI/TE)
ROEWGW (NI/TEWGW): This accounts for Goodwill
Market value ratios
Price/Earnings Ratio
Intel Corporation Ratios Financial Statements
2010
2009
3.3892
2.9864
2.1248
2.3892
2.7871
2.4005
1.7720
1.7871
23.6600
11.6111
15.2156
2.4372
0.6904
23.2949
11.9683
15.4540
2.0393
0.6616
0.2177
0.2783
0.7823
0.0329
0.0000
0.2145
0.2731
0.7855
0.0386
0.0000
0.6531
0.2628
0.1814
0.2319
0.2102
0.5569
0.1244
0.0823
0.1048
0.0929
10.1000
22.2000
Cynthia Kenyon and Michael Davis

FIN 135, September 23, 2011
FINANCIAL STATEMENTS
Balance Sheet
Three Years Ended December 25, 2010
(In Millions, Except Par Value)
Assets
Current Assets:
Cash and cash equivalents
Short-term investments
Trading assets
Accounts receivable, net of allowance for doubtful accounts
($28 in 2010, $19 in 2009, and $17 in 2008)
Inventories
Deferred tax assets
Other current assets
Total current assets
Property, plant and equipment, net
Marketable equity securities
Other long-term investments
Goodwill
Other long-term assets
Total assets
Liabilities and stockholders' equity
Current Liabilities
Short-term debt
Accounts payable
Accrued compensation and benefits
Accrued advertising
Deferred income on shipments to distributors
Other accrued liabilities
Income tax payable
Total current liabilities
Long-term income taxes payable
Long-term debt
Long-term deferred tax liabilities
Other long-term liabilities
Total Liabilities
Stockholders' equity:
Preferred stock, $0.001 par value, 50 shares authorized; none issued
Common stock, $0.001 par value, 10,000 shares authorized; 5,581
issued and 5,511 outstanding (5,523 issued and outstanding in 2009)
(5,562 issued and outstanding in 2008)and capital in excess of par
value
Accumulated other comprehensive income (loss)
Retained earnings
Total stockholders' equity
Total liabilities and stockholders' equity
2010
2009
5,498
11,294
5,093
2,867
17%
36%
16%
9%
3,987
5,285
4,648
2,273
19%
25%
22%
11%
3,757
1,488
1,614
31,611
17,899
1,008
3,026
4,531
5,111
63,186
12%
5%
5%
50%
28%
2%
5%
7%
8%
2,935
1,216
813
21,157
17,225
773
4,179
4,421
5,340
53,095
14%
6%
4%
40%
32%
1%
8%
8%
10%
38
2,290
2,888
1,007
622
2,482
0
9,327
190
2,077
926
1,236
13,756
172
1,883
2,448
773
593
1,722
0
7,591
193
2,049
555
1,003
11,391
16,178
333
32,919
49,430
63,186
14,993
393
26,318
41,704
53,095

Income Statement
(In Millions, Except Per Share Data)
Net revenue
Cost of sales
Gross margin
Research and development
Marketing , general and administrative
Restructuring and asset impairment charges
Amortization of acquisition-related intangibles
Operating expenses
Operating income (EBIT)
Gains (losses) on equity method investments, net
Gains (losses) on other equity investments, net
Interest and other, net
Income before taxes
Provision for taxes
Net income
Basic earnings per common share
Diluted earnings per common share
Weighted average common shares outstanding:
Basic
Diluted
2010
43,623
15,132
28,491
6,576
6,309
0
18
12,903
15,588
117
231
109
16,045
4,581
11,464
2009
35,127
15,566
19,561
5,653
7,931
231
35
13,850
5,711
(147)
(23)
163
5,704
1,335
4,369
2.06
2.01
0.79
0.77
5,555
5,696
5,557
5,645

RATIOS
2008
2.5417
2.0628
1.4844
1.5417
16.3976
10.0390
21.9544
2.1387
0.7447
0.2165
0.2763
0.7835
0.0235
0.0000
0.5546
0.1408
0.1049
0.1338
0.1167
21.7000

CIAL STATEMENTS
Balance Sheet
2008
3,350
5,331
3,162
1,712
3,744
1,390
1,182
19,871
17,574
352
2,924
3,932
5,819
50,472
102
2,390
2,015
807
463
1,901
140
7,818
736
1,185
46
1,141
10,926
13,402
(393)
26,537
39,546
50,472

come Statement
2008
37,586
16,742
20,844
5,722
5,452
710
6
11,890
8,954
(1,380)
(376)
488
7,686
2,394
5,292
0.93
0.92
5,663
5,748

Intel Corporation
RATIO COMPARISON
Solvency
Current Ratio
Quick Ratio (Acid Test)
Cash Ratio
Net. Capital to Current Liabilities
Current Assets/Current Liabilities

Current Assets - Inventory/Current Liabilities
Cash/Current Liabilities
Networking Capital/Current Liabilities
Cash as a % of Current Assets
Efficiency
Inventory Turnover
Receivable Turnover
Financial Leverage Ratios

Total Debt Ratio
Debt-Equity Ratio
Equity Ratio
Times Interest Earned
Profitability
Gross Profit Margin (GPM)
Net Profit Margin (NPM)
Return on Total Assets (ROA)
Return on Equity (ROE)
Accounts Receivable/(Sales / 360)

Total Revenues/Inventory
Total Revenues/Accounts Receivable
Total Revenues/Fixed Assets
Total Revenues/Total Assets
Total Debt/Total Assets

Total Debt/Total Equity
Total Equity/Total Assets
Long-term Debt / Total Assets
EBIT/Total Interest Payments
Gross Profits/Net Operating Income

Net Profits/Net Operating Income
Net Income/Total Assets
RETURN ON EQUITY
2008
2009
2010
2.54
2.06
1.48
1.54
0.17
2.79
3.39
2.40
2.99
1.77
2.12
1.79
2.39
0.19 ### 0.17
AMD
CrossSectiona
l
TimeSeries
2.15
1.77
0.38
1.15
0.17
Good
Good
Good
Good
Good
OK
OK
OK
OK
Variable
16.40
10.04
21.95
2.14
0.74
23.29
11.97
15.45
2.04
0.66
23.66
11.61
15.22
2.44
0.69
53.66
10.28
6.71
9.28
1.31
Good
Good
Good
Bad
Bad
GOOD
Variable
Variable
Variable
Variable
0.22
0.28
0.78
0.02
0.00
0.21
0.27
0.79
0.04
0.00
0.22
0.28
0.78
0.03
0.00
0.80
3.90
0.20
0.44
4.88
Good
Good
Bad
Good
Good
OK
OK
Variable
Variable
Warning
0.55
0.14
0.10
0.13
0.56
0.12
0.08
0.10
0.65
0.26
0.18
0.23
0.46
0.07
0.09
0.46
Good
Good
Good
Bad
OK
Variable
Variable
Variable
These are restated ratios from the Financial Statements page. Make sure they are consistent.
Intel Corporation Ratio Comparison

FIN 135, October 5, 2011
Intel Corporation
VALUE LINE
Value Line Data

Symbol: INTC
Sales per share

Cash flow per share
Earnings per share
Dividends per share
Capital Spending per share
Book value per share
Common Shares Outstanding
Average annual P/E ratio
Average price to earnings ratio
Average annual dividend yield
Sales ($mill)
Operating margin
Depreciation ($Mill)
Net profit ($Mill)
Income tax rate (%)
Net profit margin (%)
Working Capital ($Mill)
Long-term Debt ($Mill)
Shareholder equity ($Mill)
Return on equity
Average return on equity
ACRR = AVERAGE Compounded Rate of Return
Dividend payout ratio
Minimum P/E Ratio
Maximum P/E Ratio
ACRR
3.8%
5.8%
7.9%
14.5%
-0.8%
8.0%
Beta:
2005
2006
2007
$6.56
$2.20
$1.40
$0.32
$0.98
$6.11
5919.0
17.8
$6.14
$1.68
$0.86
$0.41
$1.00
$6.37
5766.0
23.3
$6.59
$1.98
$1.18
$0.45
$0.86
$7.35
5818.0
19.9
1.3%
$38,826
42.7%
$4,345.0
$8,664.0
31.3%
22.3%
$11,960.0
$2,106.0
$36,182.0
24%
2.0%
$35,382
30.8%
$4,654.0
$5,044.0
28.6%
14.3%
$9,766.0
$1,848.0
$36,752.0
14%
1.9%
$38,334
34.7%
$4,546.0
$6,976.0
23.9%
18.2%
$15,314.0
$1,980.0
$24,762.0
28%
23%
46%
38%
19.2
2.4%
1.5%
6.2%
3.7%
6.4%
18.92%
10.1
23.3
Calculations

2005
2006
2007
ACGR
Price per share
$24.92
$20.04
$23.48
Owners cash flow
8.6%
$7,208.38
$3,932.00
$6,518.52
Annual cash flow growth rate
-45.45%
65.78%
5 year average cash flow growth
25.9%
Annual sales growth
-8.82%
8.30%
5 year average sales growth
3.0%
VALUE ADDED
($6.34)
$3.02
Average value added
($2.05)
Owners cash flow per share
$1.22
$0.68
$1.12
SHARE PRICE/BOOK VALUE
4.08
3.15
3.19
The first 35 rows are simply restated from your Value Line Data Sheet. These numbers must be accurately trans
to provide relevant information. Make sure all information is consistent with what is found on the Financial State
the Ratio Comparison page.


VALUE LINE
alue Line Data

1.00
Price: $21.49
2008
2009
2010
$6.76
$1.74
$0.92
$0.55
$0.93
$7.03
5562.0
21.7
$6.36
$1.65
$0.77
$0.56
$0.82
$7.55
5523.0
22.2
$7.92
$2.92
$2.05
$0.63
$0.94
$8.97
5511.0
10.1
2.8%
$37,586
37.3%
$4,360.0
$5,292.0
31.1%
14.1%
$12,053.0
$1,886.0
$39,088.0
14%
3.3%
$35,127
29.8%
$4,744.0
$4,369.0
23.4%
12.4%
$13,566.0
$2,049.0
$41,704.0
10%
3.0%
$43,623
45.9%
$4,398.0
$11,692.0
28.7%
26.8%
$22,284.0
$2,077.0
$49,430.0
24%
59%
71%
30%
Calculations

2008
2009
2010
$19.96
$4,479.34
-31.28%
$17.09
$4,584.14
2.34%
$20.71
$10,909.66
137.99%
-1.93%
-6.58%
24.26%
($4.83)
($3.81)
$1.68
$0.81
$0.83
2.84
2.26
Sheet. These numbers must be accurately transcribed in order
nsistent with what is found on the Financial Statements and
$1.98
2.31


Intel Corporation
FORECAST - MOST LIKE
INTRINSIC VALUATION MODEL - TWO-STAGE EARNING
2011
2012
Prior year cash flows (mil)

10-year growth rate (.00)
Cash flow
Discount Rate (.00)
Discount Factor (mult.)
Discounted value per annum
Sum of present value of cash flows
10,909
25.87%
13,732
0.15
0.869565
11,941
$185,409
Residual value
Cash flow in year 10
Growth rate (.00) (g)
Capitalization rate (k-g)
Value at end of year 10
Discount factor year 10
$108,934
0.04
$113,292
0.11
$1,029,923
0.24718
Present value of residual

Total Intrinsic Value (mil)
Number of shares (mil)
Intrinsic value per share
Intrinsic / Market
Input discount & growth rates
First 10 year growth rate
Growth Rate Year 11 in perpetuity
Discount rate
Owners cash flow (mil)
$254,581
$439,990
5,511
$79.84
3.72
25.87%
0.04
0.15
$10,909.66
13,732
25.87%
17,285
0.15
0.756144
13,070
2013
##
17,285
25.87%
21,757
0.15
0.657516
14,306
2014
##
21,757
25.87%
27,387
0.15
0.571753
15,658
4
3
2
1
0
-1
-2
-3
-4
-5
-6
-7
This page is all pre-determined by the information from the Value Line page. The only thing you may have to change



T - MOST LIKELY
O-STAGE EARNINGS GROWTH PROJECTIONS
2015
##
27,387
25.87%
34,473
0.15
0.497177
17,139
2016
##
2017
##
34,473
25.87%
43,392
0.15
0.432328
18,760
43,392
25.87%
54,620
0.15
0.375937
20,534
2018
##
54,620
25.87%
68,752
0.15
0.326902
22,475
2019
##
68,752
25.87%
86,542
0.15
0.284262
24,601
2020
86,542
25.87%
108,934
0.15
0.247185
26,927
Annual sales growth

VALUE ADDED
Owners cash flow per
share
ou may have to change is the growth rate for the three different scenarios.



Intel Corporation
FORECAST - PESSIMIST
2011
Cash flow
Discount Rate (.00)
10,909
20.87%
13,186
0.15
0.869565
11,466
$144,953
Residual value
$72,633
0.04
$75,538
0.11
$686,711
0.24718

Market value (mil)
Intrinsic / Market
2nd period growth rate
Discount rate
$169,745
$314,697
5,511
$57.10
2.66
20.87%
0.04
0.15
$10,909.66
2012
13,186
20.87%
15,939
0.15
0.756144
12,052
2013
##
15,939
20.87%
19,266
0.15
0.657516
12,668
2014
##
19,266
20.87%
23,288
0.15
0.571753
13,315
4
3
2
1
0
-1
-2
-3
-4
-5
-6
-7



T - PESSIMISTIC
2015
##
23,288
20.87%
28,149
0.15
0.497177
13,995
2016
##
2017
##
28,149
20.87%
34,025
0.15
0.432328
14,710
34,025
20.87%
41,127
0.15
0.375937
15,461
2018
##
41,127
20.87%
49,712
0.15
0.326902
16,251
2019
##
49,712
20.87%
60,090
0.15
0.284262
17,081
2020
60,090
20.87%
72,633
0.15
0.247185
17,954
Annual sales growth

VALUE ADDED
share



Intel Corporation
FORECAST - OPTIMIST
2011
2012

Cash flow
Discount Rate (.00)
10,909
30.87%
14,277
0.15
0.869565
12,415
$237,790
Residual value
$160,819
0.04
$167,252
0.11
$1,520,469
0.24718

Market value (mil)
Intrinsic / Market
2nd period growth rate
Discount rate
$375,837
$613,627
5,511
$111.35
5.18
30.87%
0.04
0.15
$10,909.66
14,277
30.87%
18,685
0.15
0.756144
14,129
2013
##
18,685
30.87%
24,454
0.15
0.657516
16,079
2014
##
24,454
30.87%
32,004
0.15
0.571753
18,298
4
3
2
1
0
-1
-2
-3
-4
-5
-6
-7



T - OPTIMISTIC
2015
##
32,004
30.87%
41,885
0.15
0.497177
20,824
2016
##
2017
##
41,885
30.87%
54,817
0.15
0.432328
23,699
54,817
30.87%
71,742
0.15
0.375937
26,970
2018
##
71,742
30.87%
93,892
0.15
0.326902
30,693
2019
##
93,892
30.87%
122,880
0.15
0.284262
34,930
2020
122,880
30.87%
160,819
0.15
0.247185
39,752
Annual sales growth

VALUE ADDED
share



Intel Corporation
DuPont Analysis 2008
Income
Statement
Balance
Sheet
Sales
$37,586
Cost of Goods Sold
$16,742
Operating Expenses
$11,890
Other Inc./Exp.
($1,268)
Taxes
$2,394
Current Assets
$19,871
Net Fixed Assets
$30,601
Current Liabilities
$7,818
Long-term Debt
$3,108
Net Income
$5,292
Sales
$37,586
Sales
$37,586
Total Assets
$50,472
Total Liabilities
$10,926
Stockholders Equity
$39,546
ont Analysis 2008
Net Profit Margin

INTC
14.08%
AMD
-53.87%
Return on Assets
(ROA)
INTC
10.49%
T.A. Turnover
AMD
INTC
-40.78%
74.47%
AMD
75.70%
Return on Equity
(ROE)
INTC
13.38%
Total Liab. & Equity
AMD
INTC
-2463.78%
$50,472
AMD
$7,672
Financial Leverage
Mult. (FLM)
INTC
1.28
Stockholders Equity
AMD
INTC
60.41
$39,546
AMD
$127
COMMENTARY
Intel Corporation
Income
Statement
Balance
Sheet
Sales
$35,127
Cost of Goods Sold
$15,566
Operating Expenses
$13,850
Other Inc./Exp.
($7)
Taxes
$1,335
Current Assets
$21,157
Net Fixed Assets
$31,938
Current Liabilities
$7,591
Long-term Debt
$3,800
Net Income
$4,369
Sales
$35,127
Sales
$35,127
Total Assets
$53,095
Total Liabilities
$11,391
Stockholders Equity
$41,704
ont Analysis 2009
Net Profit Margin

INTC
12.44%
AMD
4.09%
Return on Assets
(ROA)
INTC
8.23%
T.A. Turnover
AMD
INTC
2.43%
66.16%
AMD
59.52%
Return on Equity
(ROE)
INTC
10.48%
AMD
INTC
34.10%
$53,095
AMD
$9,078
Financial Leverage
Mult. (FLM)
INTC
1.27
Stockholders Equity
AMD
INTC
14.01
$41,704
AMD
$648
COMMENTARY
Intel Corporation
Income
Statement
Balance
Sheet
Sales
$43,623
Cost of Goods Sold
$15,132
Operating Expenses
$12,903
Other Inc./Exp.
$457
Taxes
$4,581
Current Assets
$31,611
Net Fixed Assets
$31,575
Current Liabilities
$9,327
Long-term Debt
$4,429
Net Income
$11,464
Sales
$43,623
Sales
$43,623
Total Assets
$63,186
Total Liabilities
$13,756
Stockholders Equity
$49,430
ont Analysis 2010
Net Profit Margin

INTC
26.28%
AMD
7.25%
Return on Assets
(ROA)
INTC
18.14%
T.A. Turnover
AMD
INTC
9.49%
69.04%
AMD
130.82%
Return on Equity
(ROE)
INTC
23.19%
AMD
INTC
46.50%
$63,186
AMD
$4,964
Financial Leverage
Mult. (FLM)
INTC
1.28
Stockholders Equity
AMD
INTC
4.90
$49,430
AMD
$1,013
INTERPRETATION/COMMENTARY
Intel Corporation
Graham Analysis
Variables
Current Price
AAA Yield
Average P/E over last 3 years
Average P/E over last 8 years
Net Current Assets per Share
Total Debt per Share
Values
$21.49
4.50%
18.00
19.17
3.67
$2.50
Group A
#1 Earnings / Price
#2 Price / Earnings
#3 Price / Book
#4 Dividends / Price
#5 Price / Net Current Assets Per Share
Values
9.54%
10.5
2.31
2.93%
$5.86
Points
1.0
0.0
0.0
0.5
0.0
Group B
#6 Current Ratio
#7 Total Debt / Equity
#8 Total Debt / Net Current Assets
#9 Growth for last 10 years
Growth for last 5 years
#10 Number of earnings decline
Values
3.39
0.28
0.68
4.50%
7.93%
0
Points
1.0
1.0
1.0
0.5
This Graham Analysis is based on

my presentation in class related to
the Graham model. Virtually no
stock is likely to pass this conservative criteria but it is still worth
looking at.
1.0
Results
Group
Total Points
Group A
1.5
Group B
4.5
Does Company Pass the Graham Model?
No



Intel Corporation
The Buffett Model
INSTRUCTIONAL INFORMA
EPS ACGR (from Value Line)
Average ROE (8 Years)
Initial EPS Rate of Return @ Curent Price
VALUE RELATIVE TO GOVERNMENT BONDS
Projected ACRR as Equity Bond
Average Dividend Payout Ratio
Average % of Earnings Retained
7.93%
18.92%
9.54%
$51.25
Average ROE in R/E over the last 10 Years

Future Book (Equity) Value in 10 Years
13.24%
$31.11
Projected EPS in 10 Years

Average P/E Ratio
VALUE RELATIVE TO GROWING GOV'T BONDS
ACRR @ Current Price
30%
70%
$5.89
19.17
$112.81
18.03%
Projected ACRR Using Average EPS

Last Year EPS
Projected EPS in 10 Years
Projected Share Price in 10 Years
ACGR @ Current Price
2.05
$4.40
$84.25
14.64%
November 2011
Yield on T-Bonds:
Share Price:
Shares Outstanding:
Book (Equity) Value per Share:
4%
$21.49
5511
$8.97
! This is the average ROE from the Value L

! Equal to 2010 EPS divided by current shar
! Most recent EPS divided by yield on treas
! From Value Line, last Dividend %
! 1 minus average dividend payout ratio
! Average ROE times 59%
! Book Value times 1.1324% to the 10th
! Future book value times 10%
! Average P/E from Value Line
! Projected EPS times average P/E ratio
! From Value Line

! 10 year ACGR times last years EPS
! Projected EPS in 10 Years times average P
ACGR - Average Compounded Growth Rate in EPS from V

ACRR - Average Compounded Rate of Return



The Buffett Model

INSTRUCTIONAL INFORMATION
This is the average ROE from the Value Line
Equal to 2010 EPS divided by current share price
Most recent EPS divided by yield on treasury bonds
From Value Line, last Dividend %
1 minus average dividend payout ratio
Average ROE times 59%
Book Value times 1.1324% to the 10th
Future book value times 10%
Average P/E from Value Line
Projected EPS times average P/E ratio
10 year ACGR times last years EPS

Projected EPS in 10 Years times average P/E ratio
ACGR - Average Compounded Growth Rate in EPS from Value Line

ACRR - Average Compounded Rate of Return



Intel Corporation
Projected ROE Based on P/E Ratios
The Kuhle ROE Model
Projections for 10 Year Period
Year
1
2
3
4
5
6
7
8
9
10
Equity Value
$10.16
$11.50
$13.03
$14.75
$16.71
$18.92
$21.42
$24.26
$27.47
$31.11
Per Share Earnings

$1.70
$1.92
$2.18
$2.46
$2.79
$3.16
$3.58
$4.05
$4.59
$5.20
Price Appreciation (Low P/E)

Rate of Return on Appreciation
Annualized
With Reinvested Dividends
Annualized
$52.49
144%
9.34%
188.42%
11.17%
Input Variables
Current Price
Average ROE from Value Line
Initial Book Value
Payout Ratio
P/E High
P/E Low
$21.49
18.92%
$8.97
30.0%
23.30
10.10
Dividends Paidout
$0.51
$0.58
$0.65
$0.74
$0.84
$0.95
$1.07
$1.22
$1.38
$1.56
9.49
###
Reinvested Dividends
High P/E
$2.41
$2.30
$2.19
$2.09
$1.99
$1.89
$1.80
$1.72
$1.64
$1.56
19.59
###
Price Appreciation (High P/E)

Annualized
Annualized
This model is intended to present a projection

return on equity over a projected 10 year perio
assuming re-invested dividends. If dividends a
must receive the ROE rate on all dividends that
ROE's are based on the low and high P/E ratios


OE Based on P/E Ratios
Kuhle ROE Model

ns for 10 Year Period
Reinvested Dividends
Low P/E
$1.14
$1.18
$1.22
$1.26
$1.31
$1.36
$1.40
$1.45
$1.51
$1.56
13.38
Price Appreciation (High P/E)
Retained Earnings
$1.19
$1.35
$1.52
$1.73
$1.95
$2.21
$2.51
$2.84
$3.21
$3.64
22.14
$121.10
463.50%
18.87%
554.65%
20.67%
This model is intended to present a projection of the annual compounded

return on equity over a projected 10 year period. This projection is made
assuming re-invested dividends. If dividends are re-invested the investor
must receive the ROE rate on all dividends that are re-invested. The
ROE's are based on the low and high P/E ratios from the Value Line.


SUMMARY
Intel Corporation
Summary
Decision Summary
Model
DuPont Analysis
Intrinsic Value Analysis
The Graham Model

Buffett Model
Kuhle ROE Projections
Method
2008
2009
2010
Geometric Mean
Pessimistic
Optimistic
Most Likely
Group A
Group B
Combined
ACRR - Equity Bond
ACRR - EPS
Low P/E
High P/E
Value
13.38%
10.48%
23.19%
14.81%
2.66
5.18
3.72
1.5
4.5
6
18.03%
14.64%
11.2%
20.67%
The D
Is your decision consistent with your entire analysis?
Page 85
SUMMARY
Page 86
SUMMARY
Page 87
SUMMARY
on
COMMENTARY
Recommendation
Yes
Yes
Yes
Yes
No
Yes
Yes
No
Yes
The Decision
Page 88
SUMMARY
Page 89
SUMMARY
Page 90
SUMMARY
MENTARY
Page 91
SUMMARY
Page 92
SUMMARY
Page 93
Advanced Micro Devices, Inc.

RATIOS
2010
2009
2.15
1.77
0.38
1.15
1.93
1.68
0.79
0.93
53.66
10.28
6.71
9.28
1.31
49.64
9.53
7.25
1.42
0.60
Financial Leverage ratios

Total Debt Ratio (TD/TA)
Debt/Equity
Equity Ratio (TE/TA)
Times Interest Earned Ratio (EBIT/TI)
0.80
3.90
0.20
0.44
4.88
0.93
13.01
0.07
0.47
0.93
Profitability ratios
Gross Profit Margin
Net Profit Margin
ROA (NI/TA)
ROE (NI/TE)
0.46
0.07
0.09
0.46
0.42
0.04
0.02
0.34
16.20
16.20
Short term solvency ratios

Current Ratio
Quick Ratio
Cash Ratio
Net Working Capital to Current Liabilities
Asset Utilization or Turnover ratios
Inventory Turnover Ratios
Receivable Turnover
Market value ratios

Price/Earnings Ratio

FINANCIAL STATEMENTS
Balance Sheet
(In Millions, Except Par Value)
Assets
Current Assets:
Cash and cash equivalents
Short-term investments
Trading assets
Accounts receivable, net
Marketable equity securities
Inventories
Deferred tax assets
Prepaid Expenses and Other current assets
Total current assets
Property, plant and equipment, net
Acquisition related to intangible assets, net
Goodwill
Other long-term assets
Total assets
2010
Liabilities and stockholders' equity

Current Liabilities
Short-term debt
Accounts payable
Accrued liabilities
Other Short-Term Obligations
Deferred income on shipments to distributors
Other current liabilities
Income tax payable
Total current liabilities
Long-term income taxes payable
Long-term debt
Long-term deferred tax liabilities
Other long-term liabilities
Total Liabilities
Stockholders' equity:
Treasury Stock, at cost
Common stock, par value $0.01; 1,500 shares authorized on December
25, 2010 and December 26, 2009; shares issued: 691on December 25,
2010 and 679 on December 26, 2009; shares outstanding: 683 on
December 25, 2010 and 671 on December 26, 2009.
Additional paid in capital
Accumulated other comprehensive income (loss)
Retained earnings
Total stockholders' equity
Total liabilities and stockholders' equity
2009
606
1,657
968
1,183
632
745
1,019
567
205
3,594
700
37
323
310
4,964
287
4,275
3,809
98
323
573
9,078
581
698
233
143
19
647
795
479
121
168
1,674
2,210
2,188
4,252
89
3,951
1,968
8,430
(102)
(98)
7
6,575
(5,467)
0
1,013
4,964
7
6,524
(5,785)
0
648
9,078

Income Statement
(In Millions, Except Per Share Data)
Net revenue
Cost of sales
Gross margin
Research and development
Marketing , general and administrative
Legal Settlement
Amortization of acquired intangible assets
Operating expenses
Operating income
Interest Income
Interest Expense
Interest and other, net
Income before taxes
Provision for taxes
Equity in net loss of investee
Net income
Basic earnings per common share
Dilluted earnings per common share
Weighted average common shares outstanding:
Basic
Dilluted
2010
6,494
3,533
2,961
1,405
934
(287)
61
2,113
848
11
(199)
311
971
38
(462)
471
2009
5,403
3,131
2,272
1,721
994
(1,177)
70
1,608
664
16
(438)
166
408
112
(75)
221
0.66
0.64
0.46
0.45
711
733
673
678

icro Devices, Inc.
OS
2008
1.07
0.77
0.49
0.07
19.83
8.85
18.15
1.35
0.76
0.98
59.41
0.02
0.60
(5.99)
0.40
(0.54)
(0.41)
(24.64)
16.20

TATEMENTS
Sheet
2008
933
320
163
656
307
2,379
4,296
168
323
506
7,672
631
970
372
50
203
2,226
4,581
738
7,545
(97)
6
6,354
(6,136)
0
127
7,672

atement
2008
5,808
3,488
2,320
1,848
1,304
986
137
4,275
(1,955)
39
(391)
(37)
(2,344)
68
(717)
(3,129)
(5.15)
(5.15)
607
607


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Company Name:

Student Name (s)______________

1. Financial Statements and Ratios, including analysis

2. Ratio comparison and analysis

3. DuPont Analysis and Interpretation (3 Years)

4. Value Line Spread sheet and analysis

7. Buffett Model and Analysis with Interpretation ...

8. ROE Model and Analysis with Interpretation

135 PROJECT GRADE SHEET

udent Name (s)_______________________________________________________

d Analysis with ML, OPT., PESS.....

resto of your analysis and interpretation?

r previous discussion and what is your recommendation?

alysis of Intel Stock Potential

esented by: Student Name

connect and enrich the lives of every person on

world's first microprocessor in 1971. Intel has an

became the company's fifth CEO on May 18, 2005,

anufacturing and Enterprise Services, and chief

irman of Intel China. Prior to his current role,

t and general manager of Intel Corporation's

Corporation and president of Intel Capital.

used in notebooks, netbooks,

Short term solvency ratios

Intel Corporation Ratios Financial Statements

Cynthia Kenyon and Michael Davis

Intel Corporation Ratios Financial Statements

Cynthia Kenyon and Michael Davis

Intel Corporation Ratios Financial Statements

Cynthia Kenyon and Michael Davis

Intel Corporation Ratios Financial Statements

Cynthia Kenyon and Michael Davis

Intel Corporation Ratios Financial Statements

Cynthia Kenyon and Michael Davis

Intel Corporation Ratios Financial Statements

Cynthia Kenyon and Michael Davis

Current Assets/Current Liabilities

Financial Leverage Ratios

Accounts Receivable/(Sales / 360)

Total Debt/Total Assets

Gross Profits/Net Operating Income

Intel Corporation Ratio Comparison

Cynthia Kenyon and Michael Davis

Value Line Data

Sales per share

Intel Corporation Ratio Comparison

Cynthia Kenyon and Michael Davis

Intel Corporation Ratio Comparison

Cynthia Kenyon and Michael Davis

Intel Corporation Ratio Comparison

Cynthia Kenyon and Michael Davis

alue Line Data

Intel Corporation Ratio Comparison

Cynthia Kenyon and Michael Davis

Intel Corporation Ratio Comparison

Cynthia Kenyon and Michael Davis

Intel Corporation Ratio Comparison

Cynthia Kenyon and Michael Davis

FORECAST - MOST LIKE

INTRINSIC VALUATION MODEL - TWO-STAGE EARNING

Prior year cash flows (mil)

Present value of residual

Intel Corporation Ratio Comparison

Cynthia Kenyon and Michael Davis