Qualcomm Inc. designs, develops, manufactures, and markets digital communications products and services in China, South Korea, Taiwan, and the United States. The company operates through three segments: Qualcomm CDMA Technologies, Qualcomm Technology Licensing, and Qualcomm Strategic Initiatives. The company was founded in 1985 and is based in San Diego, California.
QCOM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Qualcomm Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Qualcomm Inc ranked in the 35th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Qualcomm Inc, consider:
The compound growth rate in the free cash flow of Qualcomm Inc over the past 5.48 years is -0.01%; that's better than only 19.37% of cash flow producing equities in the Technology sector, where it is classified.
QCOM's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 34.11% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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With the new HRX Audio devices supported by Qualcomm's technologies, consumers can look forward to a wealth of new features that will allow them to enjoy a long lasting and distraction free audio experience, he added.
Britain has joined forces with India's Bharti Global to buy the collapsed satellite operator OneWeb, with the two sides pledging $1 billion between them to develop a fleet of low earth orbit satellites to boost broadband and other services. Under the deal announced on Friday, Britain will invest $500 million and take a significant equity share in OneWeb while Bharti will invest the same amount and provide commercial and operational leadership.