31 Dec, 2020 07:45 am

Cash-Flow Valuations On Big 5 Tech Versus Value Tech

Cash-Flow Valuations On Big 5 Tech Versus Value Tech
Stocks Analysis by Brian Gilmartin covering: S&P 500, Intel Corporation, Microsoft Corporation, Cisco Systems Inc. Read Brian Gilmartin's latest article on

” Writing bottom-up fundamental analysis, I am more bullish on Oracle (NYSE: ORCL ) after the December ’20 earnings report, but have no change in opinion on IBM (NYSE: IBM ) or Cisco (NASDAQ: CSCO ).Value Tech remains value tech as Intel (NASDAQ: INTC ) has really cheapened up, understandably so.The first major observation is that Apple's (NASDAQ: AAPL ) valuation expansion continued, as EPS estimates haven’t changed much since the October ’20 earnings release.Here’s how the current estimates look: Estimate source: IBES data by Refinitiv Summary / conclusion: Growth Tech always looks expensive, and that’s still the case today but the valuations haven’t changed much since this summer for the “Big 5.

5 – $9 billion saved from reducing capex.Of course reducing capex means reducing its competitive advantage since manufacturing is (or was) Intel’s competitive edge in it’s business model.

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