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)||$3,589.03||$5,296.33||$6,477.43||$6,369.65||$6,263.67|
|Source||Analyst x7||Analyst x10||Analyst x4||Extrapolated @ (-1.66%)||Extrapolated @ (-1.66%)|
Discounted (@ 9.6%)
Present value of next 5 years cash flows:
Terminal Value = FCF2021 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $6,264 × (1 + 2.3%) ÷ (9.61% – 2.3%)
Terminal value based on the Perpetuity Method where growth (g) = 2.3%:
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows + terminal value
Value = Total value / Shares Outstanding ($76,670 / 1,476)
Value per share:
Current discount (share price of $51.98): -0%
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 = 9.61% = 2.33% + (0.949 * 7.67%)
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))
0.949 = 0.791 (1 + (1- 30%) (28.54%))
Levered Beta used in calculation = 0.949
Are QUALCOMM's annual earnings growth expected to exceed 3.4% over the next 3 years?
Dr. Paul E. Jacobs, Ph.D., has been an Executive Chairman of Qualcomm Incorporated since March 03, 2009. Dr. Jacobs served as Chief Executive Officer at Qualcomm Incorporated from July 2005 to March 04, 2014. Dr. Jacobs joined the Qualcomm Incorporated in 1990 as a Development Engineer leading the Cellphone Digital Signal Processor Software team. He is a leader in the field of mobile communications for more than 25 years. He was a key architect of Qualcomm's strategic vision and his responsibilities include leadership and oversight of all the initiatives and operations. Since 1995, Dr. Jacobs served as a Vice President and General Manager of the combined Handset and Integrated Circuit Division at Qualcomm and was divided into QUALCOMM Consumer Products (QCP) and QUALCOMM CDMA Technologies respectively. He served as a Senior Vice President at Qualcomm, since 1996 and as the President at QCP, since 1997. Dr. Jacobs served as Executive Vice President at Qualcomm MEMS Technologies, Inc. (QUALCOMM Incorporated) from February 2000 to June 2005 and its President of QUALCOMM Wireless & Internet (QWI) from July 2001 to June 2005. He served as the Chief Executive Officer at QCP Incorporated. Dr. Jacobs served as Senior Vice President and President of Consumer at Ignition Partners. He served as the President at AnswerLogic. Dr. Jacobs is Chairman of the U.S.-Korea Business Council. Dr. Jacobs serves as Vice Chairman of the NBA Sacramento Kings. He is a Member of the Advisory Board of the University of California-Berkeley, College of Engineering and the University of California-San Diego, Jacobs School of Engineering. Dr. Jacobs serves on the Boards of Light, A123Systems, the Museum of Contemporary Art San Diego and the Salk Institute for Biological Studies. Dr. Jacobs is also a Member of the Advisory Board of Young President's Organization. He serves as a Member of Board of Directors of Dropbox Inc. He has been a Director of QUALCOMM Incorporated since June 07, 2005. He serves as a Director of OneWeb LLC. He serves as a Board Observer of Magic Leap, Inc. He served as a Director of B456 Systems, Inc. from November 2002 to July 23, 2012. He serves as a Member of Investment Committee at QUALCOMM Ventures. Dr. Jacobs is a recipient of a number of industry, academic and corporate leadership awards: Institutional Investor, List of America's Best (Telecom Sector) - Best Chief Executive Officer in 2007-2014; Berkeley Engineering Innovation Award in 2008; Radio Club of America, The Sarnoff Citation in 2008; IEEE CASS Industrial Pioneer Award in 2009; Higginbotham Corporate Leadership Award in 2010; Laptop Magazine, 25 Most Influential People in Mobile in 2011; NCAFP Global Business Leadership Award in 2011; Global Telecoms Business, Power 100 in 2011-2012; VentureBeat, Top Ten Mobile Movers in 2012; FORTUNE, Ten Brilliant Technology Visionaries in 2012; Samsung Award of Honor in 2012; Sesame Workshop, Corporate Leadership Award in 2013, Edison Achievement Award in 2013 and GSMA Chairman's Award in 2014. As an innovative leader of a broad range of technical teams, Dr. Jacobs has been granted more than 50 patents for his inventions in the areas of wireless technology and devices. He received a Ph.D. in Electrical Engineering and Computer Science from the University of California-Berkeley in 1989. Dr. Jacobs received a B.S. degree in 1984 and an M.S. in Electrical Engineering and Computer Science in 1986 degrees from the University of California, Berkeley.
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:||$76,726 million|
5775 Morehouse Dr, San Diego, 92121, United States
|Sector:||Semiconductors and Semiconductor Equipment|