Intel Costs 62 Times Next Year's Earnings. It Lost $11 Billion Over the Past Year.
Most of that loss was paper. Still, today's premium price assumes profits that haven't arrived yet.
Overview
Intel (NASDAQ:INTC) carries one of the stranger price tags in the market right now. The chipmaker's net loss over the past year comes to about $11.3 billion. Its stock, meanwhile, trades at about $105 as of this writing, up more than 350% from its 52-week low of $22.78. And it costs about 62 times what the company is expected to earn on an adjusted basis over the year ahead.
A company losing billions doesn't usually command a $550 billion market value and a premium growth multiple at the same time. The market has decided Intel's losses aren't what they appear, and on that point, I think the market is right.
Details
Whether the stock is worth that price is a different matter.
Source
Originally published at www.fool.com.