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 13th 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. In terms of the factors that were most noteworthy in this DCF analysis for QCOM, they are:
Its compound free cash flow growth rate, as measured over the past 5.5 years, is -0.11% -- higher than merely 14.23% of stocks in our DCF forecasting set.
As a business, QCOM is generating more cash flow than 91.98% of positive cash flow stocks in the Technology.
The business' balance sheet reveals debt to be 11% of the company's capital (with equity being the remaining amount). Approximately just 23.47% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ON, QADB, COHU, FEYE, and NUAN can be thought of as valuation peers to QCOM, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
Expecting multiple expansion across the business, Citi maintains a Buy rating on Qualcomm (QCOM) and raises the price target from $102 to $132.Analyst Christopher Danely sees the 5G tailwind helping push Qualcomm to 43% annual earnings growth through 2021, which is "well above the peer average of 1%."Citi maintains Qualcomm as...
If you are looking for the best ideas for your portfolio you may want to consider some of Del Principe O’Brien Financial Advisors top stock picks. Del Principe O’Brien Financial Advisors, an investment management firm, is bullish on Qualcomm Inc (NASDAQ:QCOM) stock. In its Q2 2019 investor letter – you can download a copy here […]
The Federal Trade Commission has filed a motion to rehear the antitrust suit that it lost to Qualcomm (QCOM +2.2%). The FTC has asked for an en banc hearing before an 11-judge panel of the Ninth Circuit Court of Appeals. That's in the wake of a three-judge panel on the...
The regulator asked the U.S. Ninth Circuit Court of Appeals for an "en banc" hearing before an 11-judge panel. Last month, a three-judge panel at the appeals court reversed a lower court decision against the San Diego-based company, the largest supplier of chips for mobile phones and a major source of wireless communications technology for 5G networks. The U.S. Ninth Circuit Court of Appeals also vacated an injunction that would have required Qualcomm to change its intellectual property licensing practices.