QUALCOMM Incorporated develops, designs, manufactures, and markets digital communications products and services in China, South Korea, Taiwan, the United States, and internationally. More info.
The calculations below outline how an intrinsic value for QUALCOMM is arrived at by discounting future cash flows to their present value. We use analyst's estimates of cash flows going forward 5 years.
See our documentation to learn about this calculation.
|Levered FCF (USD, Millions)||$6,541.63||$7,007.72||$7,186.33||$7,392.22||$7,604.00|
|Source||Analyst x10||Analyst x10||Analyst x3||Extrapolated @ (2.86%)||Extrapolated @ (2.86%)|
Discounted (@ 9.3%)
Present value of next 5 years cash flows:
Terminal Value = FCF2021 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $7,604 × (1 + 2.5%) ÷ (9.31% – 2.5%)
Terminal value based on the Perpetuity Method where growth (g) = 2.5%:
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows + terminal value
Value = Total value / Shares Outstanding ($100,424 / 1,490)
Value per share:
Current discount (share price of $56.73): 16%
The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.
Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
Discount rate = 9.31% = 2.47% + (0.908 * 7.53%)
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
0.908 = 0.828 (1 + (1- 30%) (13.82%))
Levered Beta used in calculation = 0.908
Are QUALCOMM's annual earnings growth expected to exceed 3.6% over the next 3 years?
Mr. Steven M. Mollenkopf, also known as Steve, has been the Chief Executive Officer of QUALCOMM Incorporated since March 04, 2014. Mr. Mollenkopf serves as a Member of Qualcomm’s executive committee, helps to drive Qualcomm’s overall global strategy. Mr. Mollenkopf served as an Executive Vice President of QUALCOMM Incorporated from May 2008 to November 12, 2011 and its President and Chief Operating Officer from November 12, 2011 to March 4, 2014. He served as the Group President of Qualcomm CDMA Technologies (QCT) from September 2010 to October 2010 and served as its Executive Vice President from May 2008 to November 12, 2011. He served as an Executive Vice President of QCT Product Management from May 2008 to July 2008 and Senior Vice President, Engineering and Product Management from July 2006 to May 2008 and also Vice President of Engineering from April 2002 to July 2006. He joined Qualcomm in 1994 as an engineer and was a leading contributor to the Globalstar project before joining the QCT team in 1999. He played a central role in developing QCT’s roadmap and led the development and commercialization of the 3GPP family of air interface technologies. His technical and business leadership have also been critical to the development and implementation of multiple industry-leading innovations. He has been a Director of Qualcomm Incorporated since December 12, 2013 and General Electric Company since November 4, 2016. He serves on the Board of Directors at the Semiconductor Industry Association and serves as Co-Chairman of the Global Semiconductor Alliance Board of Directors to include their Executive Committee and CEO Council. A published IEEE author, Mr. Mollenkopf holds patents in areas such as power estimation and measurement, multi-standard transmitter system and wireless communication transceiver technology. Mr. Mollenkopf holds two Electrical Engineering degrees, including a BSEE from Virginia Tech and an MSEE from the University of Michigan at Ann Arbor.
Average tenure of the QUALCOMM management team:
Average tenure of the QUALCOMM board of directors:
QUALCOMM Incorporated develops, designs, manufactures, and markets digital communications products and services in China, South Korea, Taiwan, the United States, and internationally. The company operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software based on code division multiple access (CDMA), orthogonal frequency division multiple access (OFDMA), and other technologies for use in voice and data communications, networking, application processing, multimedia, and global positioning system products. The QTL segment grants licenses or provides rights to use portions of its intellectual property portfolio, which include various patent rights useful in the manufacture and sale of certain wireless products comprising products implementing CDMA2000, WCDMA, CDMA TDD, and/or LTE standards, as well as their derivatives. The QSI segment invests in early-stage companies in various industries, including digital media, e-commerce, healthcare, and wearable devices for supporting the design and introduction of new products and services for voice and data communications. The company also develops and offers products for implementation of small cells; mobile health products and services; software products, and content and push-to-talk enablement services to wireless operators; and development, and other services and related products to the United States government agencies and their contractors. In addition, it licenses chipset technology and products for data centers. QUALCOMM Incorporated was founded in 1985 and is headquartered in San Diego, California.
|Market Cap:||$84,516 million|
5775 Morehouse Dr, San Diego, 92121, United States
|Sector:||Semiconductors and Semiconductor Equipment|