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. Our DCF analysis suggests the stock is overvalued by about 85.83%. 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 5.73 years, is -0.11% -- higher than just 13.22% of stocks in our DCF forecasting set.
The company has produced more trailing twelve month cash flow than 91.85% of its sector Technology.
The business' balance sheet reveals debt to be 11% of the company's capital (with equity being the remaining amount). Approximately just 24.31% 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
IEC, MJCO, NUAN, ON, and FEYE 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.
Facebook Inc. on Wednesday announced a lighter, cheaper VR headset. The $299 Oculus Quest 2, due Oct. 13, can be ordered today, company Chief Executive Mark Zuckerberg said during a product event called Facebook Connect. (The current VR headset costs $399.) The new headset will offer crisper graphics and a single LCD, powered by Qualcomm Inc.'s Snapdragon chip. The headset comes as more Americans play and work from home. The market for VR headsets is expected to grow 46% in 2021, according to market researcher International Data Corp. Zuckerberg, who delivered the news via a live stream, added that Facebook is readying augmented-reality glasses for next year. Facebook is partnering with Luxottica Group, an Italian eyewear conglomerate.
Micron (NASDAQ: MU) and Qualcomm (NASDAQ: QCOM) both provide crucial chips for electronic devices. Micron is a leading producer of DRAM and NAND (flash) memory chips, and Qualcomm is the world's largest manufacturer of mobile chipsets and modems for smartphones.
(Bloomberg) -- The U.S. chip industry said as much as $50 billion in federal incentives will be needed to halt a decades-long trend of manufacturing moving overseas as China spends heavily to become a leading semiconductor producer.The federal government needs to deploy $20 billion to $50 billion to make the U.S. as attractive a location for plants as Taiwan, China, South Korea, Singapore, Israel and parts of Europe, the Semiconductor Industry Association said in a study released Wednesday. Failure to do that threatens U.S. leadership of the sector as a whole, it added.The lobbying group, which represents companies such as Intel Corp. and Qualcomm Inc., is making the pitch at a time when it believes Washington is more open to listening. The China-U.S. trade war and supply-chain disrupti...