Question: Compare the stock prices produced by the two methods to the actual stock price. What recommendations can you make as to whether clients should buy

Compare the stock prices produced by the two methods to the actual stock price. What recommendations can you make as to whether clients should buy or sell Intel Corporation (INTC) stock based on your price estimates?

Note: The company is Intel Corp (INTC)

current stock price: $64.34

Dividend Discount Model share price: $70.86

Present Value of Free Cash Flow per share: $74.03

WACC = 9.67%

Dividend growth rate: 12.65%

FCFF growth rate: 9.26%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!