Intel Corporation (NASDAQ:INTC) kept active in under and overvalue discussion, INTC holds price to book ratio of 2.81 that presents much better indicator to find market price of a share price over its book value of equity for investment valuation. In addition, the firm has price to earnings ratio of 17.59, which is authentic method to judge but not universal for all situation.
Fundament/ News Factor in Focus
As widely anticipated, Intel Corporation is divesting a majority stake in its security division to alternative asset fund manager TPG. Per the definitive agreement recently signed by both the parties, a new jointly-owned company will be formed in which TPG will have a 51% stake. The deal valued at $4.2 billion includes an equity value of approximately $2.2 billion for the security division in addition to net debt of approximately $2 billion. Moreover, TPG will infuse $1.1 billion in the standalone business, which will be renamed McAfee following the close of the transaction.
Taking look on ratio analysis, INTC has forward price to earnings ratio of 13.36, compare to its price to earnings ratio of 17.59. Adding one more ration to find detail valuation of security, price to earnings growth ration that stands at 1.76. The co is presenting price to cash flow as 9.74 and while calculating price to free cash flow it concluded at 24.47, the low single digit may indicate stock is undervalued and vise versa. On other hand, keeping in mind stable cash flows but few growth prospects make traders to value lower.
The firm has price volatility of 1.12% for a week and 1.14% for a month. Its beta stands at 1.11 times. Narrow down four to firm performance, its weekly performance was 1.53% and monthly performance was 4.35%.
Weibo Corporation (NASDAQ:WB) runs in leading trade, it are knocking up 0.04% to traded at $49.22. WB attains analyst recommendation of 2.00 on scale of 1-5 with week’s performance of 3.04%.
To find out the technical position of WB, it holds price to book ratio of 16.30 that unearth high-growth companies selling at low-growth prices, but it requires appropriate measurement approach. It has forward price to earnings ratio of 43.83, and price to earnings ratio calculated as 240.10. The price to earnings growth ration calculated as 3.15. WB is presenting price to cash flow of 27.75.
EPS estimates indicating constrictive facts, the current year from sell-side analysts, Price to current year EPS stands at 145.60%, and looking further price to next year’s EPS is 65.15%. While take a short look on price to sales ratio, that was 20.68 and price to earning ration of 240.10 attracting passive investors.