$16B is a great price for Mobileye's team, but I am not sure it is the best move for Intel. But I guess Intel will try to sell package deals to car markers and thus use this to try to keep NVIDIA and ARM from locking up the in-car market. Thus it is a strategic move on Intel's part to fend off competitors rather than reflective of the intrinsic value of Mobileye. BTW what was Mobileye's revenue last year and profit m…
There is no such thing as intrinsic value. There is price and price ($16B) is determined by the market. Talking about PE and multiples is pointless for tech companies where synergies and rapid adoption/changes are common.
Intrinsic value usually refers to the present (discounted) value of future earnings.
>There is price and price ($16B) is determined by the market.
How is it determined if all valuation is supposed to be pointless?
>Talking about PE and multiples is pointless for tech companies where synergies and rapid adoption/changes are common
For a public company that has existed for almost two decades it absolutely makes sense to consider revenue multiples among other factors.
It may well be that the value of the company in Intel's hands is worth more than it is worth for other, non-strategic, investors. I agree that there is a lot of potential variability in tech, but that doesn't mean any fantasy price is right just because some people buy some shares at that price (which is what market prices mean)