Qcom Valuation Guide with Industry and Market Context

To evaluate Qualcomm's (QCOM) valuation, it's essential to consider the industry and market context.

Qualcomm's market value is over $150 billion, making it one of the largest publicly traded companies in the world.

The company's dominance in the mobile chip market is evident, with its Snapdragon processors powering over 50% of all smartphones.

The global smartphone market is projected to reach 2.5 billion units by 2025, with 5G adoption driving growth.

Qualcomm's valuation is also influenced by its significant patent portfolio, which includes over 130,000 patents and applications.

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The company's current financial position is quite strong, with a current ratio of 3.19, indicating that it has sufficient liquid assets to cover its short-term liabilities.

The debt-to-equity ratio is 0.54, which is relatively low, suggesting that the company has a manageable level of debt.

Here's a breakdown of the company's financial data:

The company has a market cap of 182.64 billion, with a takeover price of 186.97 billion, indicating a relatively high valuation.

The income statement is a crucial part of a company's financial data, providing a snapshot of its revenue and expenses over a specific period.

Revenue was a staggering MXN 815.33 billion in the last 12 months, a significant indicator of the company's financial health.

Gross profit reached MXN 453.98 billion, a substantial amount that reflects the company's ability to maintain its pricing power and manage its costs.

Operating income was MXN 229.97 billion, a vital metric that highlights the company's ability to generate profits from its core operations.

Net income was MXN 218.23 billion, a key indicator of the company's overall profitability and a reflection of its ability to manage its costs and investments.

The company's earnings per share (EPS) was a healthy 195.35, a metric that is closely watched by investors and analysts.

Here's a summary of the income statement metrics:

Dividends & Yields are a crucial aspect of a stock's financial data. This is where investors can get a glimpse into a company's ability to distribute profits to shareholders.

The stock we're looking at pays an annual dividend of 68.30, which is a significant amount. This dividend yield of 2.20% is a relatively modest return, but it's still a good starting point.

Dividend growth is an essential factor to consider, and this stock has seen a remarkable 16.62% year-over-year (YoY) increase. This is a clear indication that the company is committed to rewarding its shareholders.

However, it's worth noting that the company has only been growing its dividend for 1 year. This is a relatively short period, and we'll need to keep an eye on this metric to see if it continues.

The payout ratio is 32.79%, which means that the company is distributing a significant portion of its earnings to shareholders. This can be a good sign, but it's essential to ensure that the company has a sustainable cash flow to support this.

Here's a summary of the dividend-related metrics for this stock:

Company Analysis and Financial Data is a crucial aspect of evaluating a company's health and potential. The data is sourced from reputable providers like S&P Global Market Intelligence LLC, which ensures accuracy and reliability.

The data is updated regularly, with some information being available as far back as 30 years. This long-term perspective allows for a deeper understanding of the company's historical performance and trends.

Financial ratios such as the Current Ratio and Debt / Equity ratio are essential metrics for assessing a company's liquidity and leverage. For example, the company in Example 1 has a Current Ratio of 3.19, indicating a strong ability to pay short-term debts.

Return on equity (ROE) and return on invested capital (ROIC) are key indicators of a company's profitability and efficiency. In Example 2, the ROE is 44.62% and ROIC is 18.78%, suggesting a high return on investment for shareholders.

The company's financial data is also reflected in its market value. For instance, in Example 5, the takeover price of Qualcomm Incorporated is $186.97 billion, which is higher than its market capitalization of $182.64 billion.

Here's a breakdown of the key financial data sources used in our analysis:

The data is normalised, which can introduce a delay from the source being available. This is a common practice in data analysis to ensure consistency and accuracy.

QCOM's valuation metrics are a crucial aspect of understanding its value. The company's market cap is US$181.22b, which is divided by its current earnings of US$11.57b to get a Price to Earnings ratio of 15.7x.

The Price to Earnings ratio is a key metric for QCOM, and it's used for relative valuation analysis. Enterprise Value/Revenue is another important ratio, with QCOM's being 4.3x.

Here are some of QCOM's key valuation metrics and ratios, including Price to Sales, Price to Book, Price to Earnings Growth Ratio, Enterprise Value, and EBITDA:

QCOM's Price to Earnings ratio of 15.7x is compared to its Fair PE Ratio of 27.4x, indicating that it's good value based on its Price-To-Earnings Ratio.

If this caught your attention, see: Qcom Earnings

For relative valuation analysis, we use the Price-To-Earnings Ratio (PE Ratio) for profitable companies like QCOM. This metric is calculated by dividing the company's market cap by their current earnings.

QCOM's PE Ratio is 15.7x, which is a significant factor in its valuation. We can see this in the table below.

Other key valuation metrics for QCOM include its Enterprise Value/Revenue, Enterprise Value/EBITDA, and PEG Ratio, which are 4.3x, 13.4x, and 9.3x respectively. These metrics provide a more comprehensive view of the company's valuation.

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QUALCOMM Incorporated is covered by 73 analysts. These analysts provide valuable insights and estimates that are used as inputs to our report.

Analysts submissions are updated throughout the day, ensuring that our report reflects the most current information available.

QUALCOMM Incorporated has a diverse group of analysts covering the company, with some notable analysts including Warren Lau from Aletheia Analyst Network Limited and Brett Simpson from Arete Research Services LLP.

Here's a list of the analysts mentioned in the article:

32 of those analysts submitted the estimates of revenue or earnings used as inputs to our report.

Earnings Industry Metrics are a crucial aspect of QCOM valuation. QCOM's PE Ratio is significantly lower than its peers, averaging 15.7x compared to 63.6x for the peer average.

QCOM's PE Ratio is also lower than the US Semiconductor industry average, at 15.7x compared to 36.1x.

The industry and sector metrics for QCOM are calculated every 6 hours by Simply Wall St, providing up-to-date information on QCOM's valuation.

QCOM's PE Ratio is a key metric, and as QCOM is profitable, it's the most relevant ratio to use for relative valuation analysis.

Here's a comparison of QCOM's PE Ratio with its peers:

QCOM's Enterprise Value/Revenue is 4.3x, and its Enterprise Value/EBITDA is 13.4x, with a PEG Ratio of 9.3x.

QUALCOMM Incorporated has a significant following among analysts, with 73 covering the company. This level of interest suggests that analysts have a substantial amount of data to work with when creating their estimates.

Analyst estimates are crucial in determining the company's valuation. In this case, we have 32 analysts who submitted estimates of revenue or earnings used in our report. These submissions are updated throughout the day, providing a dynamic and up-to-date view of the company's performance.

For more insights, see: Simple Valuation of a Company

One analyst, Warren Lau, is part of the Aletheia Analyst Network Limited and has contributed to our report. Another analyst, Brett Simpson, is from Arete Research Services LLP and has also provided his insights. These analysts, along with the others, help shape our understanding of QUALCOMM Incorporated's financial performance.

The analyst 12-month forecast is a key factor in determining the company's valuation. However, we don't have enough data to show the price forecast for this company. This lack of information makes it challenging to make an accurate assessment of the company's value.

A closer look at the analyst price targets reveals some interesting insights. For instance, the target price is less than 20% higher than the current share price, suggesting that analysts are cautiously optimistic about the company's future performance. Here's a breakdown of the analyst price targets:

As you can see, the average 1Y price target is consistently high, with an average increase of around 5-7% from the current share price. However, the dispersion in these estimates is relatively high, ranging from 10-12%. This suggests that analysts have varying opinions on the company's future performance.

DCF Analysis is a crucial step in determining the value of a company like Qualcomm Inc. (QCOM). The DCF Value of one QCOM stock is estimated to be $141.67 USD, which is 16% lower than the current market price of $169.27 USD.

To calculate the DCF Value, the present value of the company's forecasted cash flows is calculated based on the selected operating model. This process involves projecting future cash flows and then discounting them using a chosen discount rate to determine their present value.

The DCF Value per share is then derived by dividing the present value of the equity by the total number of outstanding shares. This process is explained in more detail in the DCF Value Calculation section.

Here's a breakdown of the key factors that affect the DCF Value:

Sensitivity Analysis is a useful tool for assessing how changes in these key factors affect the DCF Value. By visualizing various scenarios, from significant downturns to optimistic growth, this tool helps you understand potential valuation shifts and aids in risk assessment and strategic decision-making.

The true DCF Value lies somewhere between the worst-case and best-case scenario values, reflecting the uncertainty of the future.

Qualcomm Incorporated is a multinational technology company headquartered in San Diego, California.

The company was founded in 1985 by six engineers, including Andrew Viterbi and Irwin Jacobs.

Qualcomm's primary business is designing and manufacturing semiconductors for wireless communication systems.

Its flagship product is the Snapdragon processor, used in many smartphones and tablets.

The company's revenue has been steadily increasing over the years, reaching $26.3 billion in 2020.

Qualcomm has a strong presence in the global market, with operations in over 200 countries.

Qualcomm's takeover price is a whopping $186.97 billion.

The company's market capitalization is slightly lower at $182.64 billion. This is a significant amount of money, but it's worth noting that it's still lower than the takeover price.

Qualcomm has a substantial amount of debt obligations, totaling $15.44 billion. On the other hand, the company has a healthy amount of cash on hand, with $6.38 billion in reserves.

Qualcomm's operating profit margin has taken a hit, decreasing from 0.0273 last year to 0.026 this year. This is a notable decline.

On a more positive note, Qualcomm's total cash from operating activities has increased, rising from $14 billion last year to $14.7 billion this year. This is a significant improvement.

Here's a breakdown of Qualcomm's growth indicators:

Qualcomm's quarterly earnings growth is a respectable 0.294. This is a good sign for investors looking for steady growth.

Qualcomm's dividend share is a relatively high 3.44. This suggests that the company is committed to returning value to its shareholders.

Qualcomm's net worth is an impressive MXN 3.35 trillion. The company's enterprise value is slightly higher at MXN 3.44 trillion.

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The number of shares outstanding for QUALCOMM is not available, but the company has a large float of 1.07 billion shares.

The stock price has decreased by -8.24% in the last 52 weeks, which may be a concern for investors.

The majority of the company is owned by institutions, with 82.58% of shares held by them, indicating a significant level of professional investment in the company.

Here are some key statistics about QUALCOMM's share data:

Stocks can be a great way to invest in a company, but it's essential to understand the data behind them. The share price of QCOM, for example, is currently at $169.27, which is below its estimated fair value of $195.81.

One way to determine fair value is by looking at a company's future cash flows, which is exactly what we do with the Discounted Cash Flow model. Using this model, we can see that QCOM is trading below fair value, but not by a significant amount.

Let's take a look at some share statistics for QCOM. The company has a total of 1.07 billion shares outstanding, with a float of 1.07 billion shares. The shares have decreased by -1.11% in the last year, and by -1.43% in the last quarter.

The stock price of QCOM has also decreased by -8.24% in the last 52 weeks, which is higher than the market average. This is due to a beta of 1.23, indicating that the stock price is more volatile than the market.

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Here's a summary of the stock price statistics for QCOM:

The data used in our company analysis is from S&P Global Market Intelligence LLC, and is updated regularly to ensure accuracy. The data is normalized, which can introduce a delay from the source being available.

Short selling is a critical aspect of stock trading that can impact a company's stock price.

The short interest in a stock refers to the number of shares that have been sold short but not yet covered. In the given example, the short interest is not available (n/a), indicating that this information is not publicly disclosed.

Short selling can be a significant factor in a stock's price movement.

The short percentage of shares out and short percentage of float are also not available (n/a) for the given example. This means that we cannot determine the proportion of shares that have been sold short in relation to the total number of shares outstanding or the number of shares available for trading.

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However, the short ratio, also known as the days to cover, is available and stands at 3.02. This means that it would take approximately 3.02 days to cover all the short positions in the stock.

Here's a summary of the short selling information:

QCOM's PE Ratio is a good value compared to the US Semiconductor industry average, coming in at 15.7x versus 36.1x.

Our industry and sector metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

QCOM's PE Ratio is also a good value compared to the North American Semiconductor industry average, coming in at 15.7x versus 37.2x.

Our industry and sector metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Let's take a look at the important dates and statistics for Qualcomm's valuation.

The next estimated earnings date is Wednesday, November 5, 2025.

Qualcomm's stock price has seen some volatility in the past year, decreasing by -8.24% in the last 52 weeks.

Here are some key statistics to consider:

The beta of 1.23 indicates that Qualcomm's price volatility has been higher than the market average.

Qualcomm's financial position is quite strong, with a current ratio of 3.19, indicating that the company has sufficient liquidity to meet its short-term obligations. This is a good sign for investors.

The debt-to-equity ratio of 0.54 suggests that Qualcomm has a manageable level of debt compared to its equity. This ratio is lower than many other companies in the industry, indicating that Qualcomm's balance sheet is in good shape.

Here are some key financial metrics for Qualcomm:

Qualcomm's financial efficiency is also impressive, with a return on equity (ROE) of 44.62% and a return on invested capital (ROIC) of 18.78%. This suggests that the company is generating strong profits from its investments.

Financial Efficiency is a crucial aspect of a company's overall financial health. It measures how well a company uses its resources to generate profits.

Return on Equity (ROE) is a key indicator of financial efficiency. According to the data, Qualcomm's ROE is 44.62%, which is a relatively high percentage. This means that for every dollar of equity invested in the company, it generates 44.62 cents in net income.

Another important metric is Return on Invested Capital (ROIC), which is 18.78% for Qualcomm. This indicates that the company is generating a decent return on the capital it has invested.

The company's Asset Turnover is 0.80, which means that for every dollar of assets, it generates 80 cents in revenue. This is a relatively low ratio, indicating that the company is not generating enough revenue from its assets.

Here is a summary of Qualcomm's financial efficiency metrics:

These metrics provide valuable insights into Qualcomm's financial efficiency and help investors make informed decisions about the company's value.

As we explore QUALCOMM's financial position and efficiency, let's take a closer look at their tax obligations. QUALCOMM has paid a significant 13.48 billion in taxes over the past 12 months.

This substantial tax payment is a notable aspect of their financial performance. The company's effective tax rate stands at 5.82%.