QCOM
CompareQualcomm Inc
Exchange: NASDAQSector: TechnologyIndustry: Semiconductors
QUALCOMM Incorporated (Qualcomm) is engaged in designing and manufacturing of digital communications products and services based on code division multiple access (CDMA), Orthogonal Frequency Division Multiplexing (OFDMA) and other technologies. The Company operates in four segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); Qualcomm Wireless & Internet (QWI), and Qualcomm Strategic Initiatives (QSI). The Company develops and supply integrated circuits and system software based on CDMA, OFDMA and other technologies for uses in voice and data communications, networking, application processing, multimedia and global positioning system products. Effective July 4, 2013, Bharti Airtel Ltd raised its interest to 51% from 49% by acquiring a 2% interest in Qualcomm India Pvt Ltd, from Qualcomm Inc. In November 2013, the Company sold its subsidiary, Omnitracs, Inc to Vista Equity Partners.
Did you know?
Price sits at 16% of its 52-week range.
Current Price
$133.95
-1.56%GoodMoat Value
$364.24
171.9% undervaluedProfile
Valuation (TTM)
Market Cap$143.46B
P/E26.74
EV$140.46B
P/B6.77
Shares Out1.07B
P/Sales3.20
Revenue$44.87B
EV/EBITDA9.89
Qualcomm Inc (QCOM) Stock Analysis
GoodMoat Analysis
Qualcomm appears to be a high-quality business with a strong competitive moat, evidenced by its technology leadership in wireless semiconductors and a robust financial profile. However, its current valuation, with a P/E of 26x and a price far below the provided GoodMoat target, presents a significant analytical discrepancy that requires investigation.
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Qualcomm Inc. is a leading semiconductor and software company, primarily known for designing and licensing wireless communication technologies, including foundational 5G patents and Snapdragon mobile processors. Applying the GoodMoat framework, the company likely scores well in Moat Identification, particularly in Technology Leadership (criterion 9) as a foundational patent holder, Strategic Partnerships (criterion 7) with major smartphone makers, and potentially Niche Dominance (criterion 10) in modem technology. Its Quality Indicators are strong, with a high ROE of 25.3% (exceeding the 15-20% threshold), a solid operating margin of 27.9%, a healthy FCF Yield of 9.2%, and moderate debt. This profile suggests the business passes the Moat & Quality Gate in the Decision Framework. The central question is valuation. The current P/E of 26x and modest 5% YoY revenue growth suggest a full price. However, the provided GoodMoat Target of $363.39 implies a massive margin of safety of over 180% from the current $128.92 price, which would place it in the 'Deeply Undervalued' DCF band. This extreme divergence between standard multiples and the target price is unusual and warrants a detailed, independent valuation assessment to reconcile the figures before any investment consideration. Analysis based on data as of 2024-05-15.
Market Cap$143.46B
Current Price$133.95
P/E Ratio26.74
Forward P/E—
PEG Ratio-15.30
EPS$5.01
Book Value$19.80
P/B Ratio6.77
QCOM Financial Charts
QCOM 52-Week Range
$124.07
$185.52
50-Day MA: $134.14200-Day MA: $155.15
Did you know?
Price sits at 16% of its 52-week range.
Qualcomm Inc (QCOM) Financial Summary
Qualcomm Inc (QCOM) is a Technology company in the Semiconductors industry, listed on NASDAQ. The stock currently trades at $133.95 with a market capitalization of $143.46B.
Key valuation metrics include a P/E ratio of 26.74, price-to-book ratio of 6.77, and EPS of $5.01. The company reports a profit margin of 12.0% and return on equity of 25.3%.
QCOM Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $143.46B |
| P/E Ratio | 26.74 |
| EPS | $5.01 |
| P/B Ratio | 6.77 |
| P/S Ratio | 3.20 |
| EV/EBITDA | 9.89 |
| Dividend Yield | 2.65% |
| Profit Margin | 12.0% |
| Return on Equity | 25.3% |
| Debt/Equity | 0.70 |
Qualcomm Inc (QCOM) Valuation
Based on GoodMoat's DCF model, Qualcomm Inc has a fair value estimate of $364.24. At the current price of $133.95, the stock appears 63.2% undervalued relative to our intrinsic value estimate.
QCOM Quality Indicators
Qualcomm Inc maintains a profit margin of 12.0% and an operating margin of 27.9%. Return on equity stands at 25.3%. The current ratio is 2.82. Debt-to-equity ratio is 0.70.
About Qualcomm Inc
QUALCOMM Incorporated (Qualcomm) is engaged in designing and manufacturing of digital communications products and services based on code division multiple access (CDMA), Orthogonal Frequency Division Multiplexing (OFDMA) and other technologies. The Company operates in four segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); Qualcomm Wireless & Internet (QWI), and Qualcomm Strategic Initiatives (QSI). The Company develops and supply integrated circuits and system software based on CDMA, OFDMA and other technologies for uses in voice and data communications, networking, application processing, multimedia and global positioning system products. Effective July 4, 2013, Bharti Airtel Ltd raised its interest to 51% from 49% by acquiring a 2% interest in Qualcomm India Pvt Ltd, from Qualcomm Inc. In November 2013, the Company sold its subsidiary, Omnitracs, Inc to Vista Equity Partners.
QCOM Free Cash Flow
Qualcomm Inc generated $12.83B in trailing twelve-month free cash flow, representing an FCF yield of 8.95%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
QCOM Shares Outstanding
Qualcomm Inc has 1.07 billion shares outstanding at a share price of $133.95, giving it a market capitalization of $143.46B.
QCOM Recent Insider Trades
Recent insider transactions at Qualcomm Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Palkhiwala Akash J. (EVP, CFO & COO) | SELL | 1,971 | $256467.70 |
| Grech Patricia Y (SVP, Chief Accounting Officer) | SELL | 85 | $10667.50 |
| Grech Patricia Y (SVP, Chief Accounting Officer) | SELL | 581 | $77563.50 |