The calculations below outline how an intrinsic value for
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)||$3,806.37||$5,227.45||$5,492.70||$5,437.58||$5,383.01|
|Source||Analyst x7||Analyst x6||Analyst x2||Extrapolated @ (-1%)||Extrapolated @ (-1%)|
Discounted (@ 10.92%)
Present value of next 5 years cash flows:
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $5,383 × (1 + 2.47%) ÷ (10.92% – 2.47%)
Terminal value based on the Perpetuity Method where growth (g) =
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows +
$57,353 = $18,502 + $38,851
Value = Total value / Shares Outstanding ($57,353 / 1,480)Discount to Share Price
Value per share:
Current discount (share price of $63.32): -63.44%
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 = 10.92% = 2.47% + (1.123 * 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). Note the market value of equity is used not the book value ($92,048,989,869).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
1.123 = 0.977 (1 + (1- 40%) (24.82%))
Levered Beta used in calculation = 1.123
Purchase QUALCOMM on or before the 'Buy Limit' to receive their next dividend payment.
Mr. Steven M. Mollenkopf, also known as Steve, has been the Chief Executive Officer of QUALCOMM Incorporated since March 4, 2014. 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 and age of the QUALCOMM management team in years:
Average tenure and age of the QUALCOMM board of directors in years:
See our latest analysis for QUALCOMM What you must know about ROE Firstly, Return on Equity, or ROE, is simply the percentage of last years’ earning against the book value of shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of QUALCOMM’s equity capital deployed. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NasdaqGS:QCOM Last Perf Jan 5th 18 Essentially, profit margin shows how much money the company makes after paying for all its expenses.Simply Wall St - – Full article
When QUALCOMM Incorporated (NASDAQ:QCOM) announced its most recent earnings (24 September 2017), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. … Check out our latest analysis for QUALCOMM Did QCOM perform worse than its track record and industry? … To account for any quarterly or half-yearly updates, I use data from the most recent 12 months, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data.Simply Wall St - – Full article
Check out our latest analysis for QUALCOMM Here's how I find good dividend stocks Whenever I am looking at a potential dividend stock investment, I always check these five metrics: Is it paying an annual yield above 75% of dividend payers? … Compared to its peers, QCOM has a yield of 3.35%, which is high for semiconductors and semiconductor equipment stocks. … Whether or not you like QCOM as a dividend stock, it's still worth checking the price tag.Simply Wall St - – Full article
We can determine whether this level of expected growth is too pessimistic or whether the company has consistently shown negative trend. … As a well-established company, QCOM could be exhibiting signs of potential market share loss or obsolete products to sustain large negative growth over time. … Less negative growth could signal a turnaround in place to reduce the magnitude of earnings loss.Next Steps: For QCOM, I've put together three relevant factors you should further examine: 1.Simply Wall St - – Full article
QUALCOMM Incorporated designs, develops, manufactures, and markets digital communication products worldwide. It 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, and other technologies for use in wireless 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 wireless products comprising products implementing CDMA2000, wideband CDMA, CDMA time division duplex, and/or long term evolution standards and their derivatives. The QSI segment invests in early-stage companies in various industries, including automotive, Internet of things, mobile, data center, and healthcare for supporting the design and introduction of new products and services for voice and data communications, and new industry segments. The company also provides products and services for mobile health; products designed for the implementation of small cells; development, and other services and related products to the United States government agencies and their contractors; and software products, and content and push-to-talk enablement services to wireless operators. In addition, it licenses chipset technology, and products and services for use in data centers. QUALCOMM Incorporated was founded in 1985 and is headquartered in San Diego, California.
5775 Morehouse Drive,
|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|NasdaqGS||QCOM||Common Stock||Nasdaq Global Select||US||USD||13. Dec 1991|
|DB||QCI||Common Stock||Deutsche Boerse AG||DE||EUR||13. Dec 1991|
|XTRA||QCI||Common Stock||XETRA Trading Platform||DE||EUR||13. Dec 1991|
|SWX||QCOM||Common Stock||SIX Swiss Exchange||CH||CHF||13. Dec 1991|
|SWX||QCOM||Common Stock||SIX Swiss Exchange||CH||CHF||13. Dec 1991|
|WBAG||QCOM||Common Stock||Wiener Boerse AG||AT||EUR||13. Dec 1991|
|SNSE||QCOM||Common Stock||Santiago Stock Exchange||CL||USD||13. Dec 1991|
|BMV||QCOM *||Common Stock||Bolsa Mexicana de Valores||MX||MXN||13. Dec 1991|
|BOVESPA||QCOM34||BDR EACH REPR 1 COM SHS||Bolsa de Valores de Sao Paulo||BR||BRL||23. Aug 2012|
|BASE||QCOM||CEDEAR EACH 11 REP 1 ORD USD0.0001||Buenos Aires Stock Exchange||AR||ARS||13. Sep 2000|
|Company Analysis updated:||2018/02/24|
|Last estimates confirmation:||2018/02/22|
|Last earnings update:||2017/12/24|
|Last annual earnings update:||2017/09/24|
All dates in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.