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Is Intel Corporation a Buy?

By Daniel Sparks - Mar 26, 2014 at 12:00PM

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Occasionally an irrational market serves up a market leader for a discount price. Does Intel fit the bill?

Thanks to massive scale, Intel ( INTC -0.51% ) has a competitive advantage over its peers as it outspends them in manufacturing and in research and development. That means Intel, for the most part, will have the most cutting-edge semiconductor manufacturing and the most advanced offerings for its clients. With economies of scale like this, Intel could make an excellent long-term holding if bought at the right price. But is Intel cheap enough at today's prices?

Fool contributor Daniel Sparks recently set out to estimate the value of Intel's intrinsic per-share value. Using a discounted cash flow valuation model, some conservative net income growth expectations,and a 10% discount rate, Daniel thinks shares are worth $30.60. Find out why in the following video.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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