QCOM Valuation

Qualcomm Inc

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158.010

+3.88(2.517%)1D

Overview
Forecast
Valuation
Earnings

QCOM Relative Valuation

QCOM's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, QCOM is overvalued; if below, it's undervalued.

Historical Valuation

Qualcomm Inc (QCOM) is now in the Undervalued zone, suggesting that its current forward PE ratio of 13.29 is considered Undervalued compared with the five-year average of 14.52. The fair price of Qualcomm Inc (QCOM) is between 197.74 to 246.92 according to relative valuation methord. Compared to the current price of 158.01 USD , Qualcomm Inc is Undervalued By 20.09%.

Relative Value

Fair Zone

197.74-246.92

Current Price：158.01

20.09%

Undervalued

13.29

Trailing

Forward

10.43

EV/EBITDA

Qualcomm Inc. (QCOM) has a current EV/EBITDA of 10.43. The 5-year average EV/EBITDA is 10.94. The thresholds are as follows: Strongly Undervalued below 7.53, Undervalued between 7.53 and 9.23, Fairly Valued between 12.65 and 9.23, Overvalued between 12.65 and 14.36, and Strongly Overvalued above 14.36. The current Forward EV/EBITDA of 10.43 falls within the Historic Trend Line -Fairly Valued range.

11.43

EV/EBIT

Qualcomm Inc. (QCOM) has a current EV/EBIT of 11.43. The 5-year average EV/EBIT is 12.41. The thresholds are as follows: Strongly Undervalued below 8.20, Undervalued between 8.20 and 10.31, Fairly Valued between 14.52 and 10.31, Overvalued between 14.52 and 16.62, and Strongly Overvalued above 16.62. The current Forward EV/EBIT of 11.43 falls within the Historic Trend Line -Fairly Valued range.

3.78

Qualcomm Inc. (QCOM) has a current PS of 3.78. The 5-year average PS is 4.12. The thresholds are as follows: Strongly Undervalued below 2.80, Undervalued between 2.80 and 3.46, Fairly Valued between 4.78 and 3.46, Overvalued between 4.78 and 5.44, and Strongly Overvalued above 5.44. The current Forward PS of 3.78 falls within the Historic Trend Line -Fairly Valued range.

12.01

P/OCF

Qualcomm Inc. (QCOM) has a current P/OCF of 12.01. The 5-year average P/OCF is 12.55. The thresholds are as follows: Strongly Undervalued below 8.29, Undervalued between 8.29 and 10.42, Fairly Valued between 14.68 and 10.42, Overvalued between 14.68 and 16.81, and Strongly Overvalued above 16.81. The current Forward P/OCF of 12.01 falls within the Historic Trend Line -Fairly Valued range.

13.20

P/FCF

Qualcomm Inc. (QCOM) has a current P/FCF of 13.20. The 5-year average P/FCF is 14.31. The thresholds are as follows: Strongly Undervalued below 9.10, Undervalued between 9.10 and 11.70, Fairly Valued between 16.91 and 11.70, Overvalued between 16.91 and 19.51, and Strongly Overvalued above 19.51. The current Forward P/FCF of 13.20 falls within the Historic Trend Line -Fairly Valued range.

Qualcomm Inc (QCOM) has a current Price-to-Book (P/B) ratio of 6.30. Compared to its 3-year average P/B ratio of 7.08 , the current P/B ratio is approximately -11.06% higher. Relative to its 5-year average P/B ratio of 12.05, the current P/B ratio is about -47.75% higher. Qualcomm Inc (QCOM) has a Forward Free Cash Flow (FCF) yield of approximately 7.01%. Compared to its 3-year average FCF yield of 6.15%, the current FCF yield is approximately 13.87% lower. Relative to its 5-year average FCF yield of 5.44% , the current FCF yield is about 28.74% lower.

6.30

P/B

Median3y

7.08

Median5y

12.05

7.01

FCF Yield

Median3y

6.15

Median5y

5.44

Competitors Valuation Multiple

The average P/S ratio for QCOM's competitors is 10.70, providing a benchmark for relative valuation. Qualcomm Inc Corp (QCOM) exhibits a P/S ratio of 3.78, which is -64.66% above the industry average. Given its robust revenue growth of 10.35%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Texas Instruments Inc

Micron Technology Inc

Performance Decomposition

Market capitalization of QCOM decreased by 9.86% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 22.44 to 25.72.

The secondary factor is the Revenue Growth, contributed 10.35%to the performance.

Overall, the performance of QCOM in the past 1 year is driven by Margin Expansion. Which is more sustainable.

10.35%

9.39B → 10.37B

Revenue Growth

14.62%

22.44 → 25.72

Margin Expansion

-34.83%

23.40 → 15.25

P/E Change

-9.86%