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:
Below please find a table outlining a discounted cash flow forecast for QCOM, in which we model out valuation assuming a variety of terminal growth rates. 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:
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 33.77% of tickers in our DCF set.
The weighted average cost of capital for the company is 7. This value is greater than only 16.77% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Qualcomm Inc? See MTSI, CTS, SPRS, VCRA, and WSTG.