Intrinsic value of Qualcomm - QCOM

Previous Close

$68.04

  Intrinsic Value

$32.78

stock screener

  Rating & Target

str. sell

-52%

Previous close

$68.04

 
Intrinsic value

$32.78

 
Up/down potential

-52%

 
Rating

str. sell

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of QCOM stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2017(a)
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -5.36
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  22,291
  22,737
  23,260
  23,858
  24,529
  25,272
  26,088
  26,977
  27,938
  28,975
  30,087
  31,276
  32,546
  33,897
  35,333
  36,858
  38,473
  40,183
  41,991
  43,901
  45,918
  48,047
  50,291
  52,657
  55,150
  57,776
  60,540
  63,450
  66,511
  69,733
  73,121
Variable operating expenses, $m
 
  16,630
  16,997
  17,417
  17,888
  18,411
  18,984
  19,608
  20,283
  21,011
  21,792
  21,965
  22,856
  23,805
  24,814
  25,885
  27,019
  28,220
  29,490
  30,831
  32,248
  33,743
  35,319
  36,981
  38,731
  40,575
  42,517
  44,560
  46,710
  48,972
  51,352
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  19,822
  16,630
  16,997
  17,417
  17,888
  18,411
  18,984
  19,608
  20,283
  21,011
  21,792
  21,965
  22,856
  23,805
  24,814
  25,885
  27,019
  28,220
  29,490
  30,831
  32,248
  33,743
  35,319
  36,981
  38,731
  40,575
  42,517
  44,560
  46,710
  48,972
  51,352
Operating income, $m
  2,469
  6,107
  6,262
  6,440
  6,640
  6,862
  7,104
  7,369
  7,655
  7,964
  8,295
  9,311
  9,689
  10,092
  10,519
  10,973
  11,454
  11,963
  12,501
  13,070
  13,670
  14,304
  14,972
  15,677
  16,419
  17,200
  18,023
  18,890
  19,801
  20,760
  21,769
EBITDA, $m
  3,930
  7,525
  7,698
  7,896
  8,118
  8,364
  8,634
  8,928
  9,247
  9,590
  9,958
  10,351
  10,772
  11,219
  11,694
  12,199
  12,733
  13,299
  13,898
  14,530
  15,197
  15,902
  16,645
  17,428
  18,253
  19,122
  20,037
  21,000
  22,013
  23,079
  24,201
Interest expense (income), $m
  0
  679
  456
  477
  500
  527
  557
  589
  625
  663
  704
  748
  796
  846
  900
  957
  1,018
  1,082
  1,151
  1,223
  1,299
  1,379
  1,464
  1,553
  1,647
  1,747
  1,851
  1,961
  2,077
  2,199
  2,327
Earnings before tax, $m
  3,020
  5,428
  5,807
  5,964
  6,140
  6,334
  6,548
  6,780
  7,031
  7,301
  7,591
  8,563
  8,893
  9,245
  9,619
  10,015
  10,436
  10,880
  11,351
  11,847
  12,372
  12,925
  13,509
  14,124
  14,772
  15,454
  16,172
  16,928
  17,724
  18,561
  19,442
Tax expense, $m
  555
  1,466
  1,568
  1,610
  1,658
  1,710
  1,768
  1,831
  1,898
  1,971
  2,049
  2,312
  2,401
  2,496
  2,597
  2,704
  2,818
  2,938
  3,065
  3,199
  3,340
  3,490
  3,647
  3,813
  3,988
  4,173
  4,367
  4,571
  4,786
  5,012
  5,249
Net income, $m
  2,466
  3,962
  4,239
  4,354
  4,482
  4,624
  4,780
  4,949
  5,132
  5,330
  5,541
  6,251
  6,492
  6,749
  7,022
  7,311
  7,618
  7,943
  8,286
  8,649
  9,031
  9,435
  9,861
  10,310
  10,783
  11,281
  11,806
  12,358
  12,939
  13,550
  14,192

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  37,308
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  65,486
  28,744
  29,406
  30,161
  31,010
  31,950
  32,981
  34,105
  35,320
  36,630
  38,036
  39,540
  41,145
  42,853
  44,669
  46,596
  48,638
  50,800
  53,086
  55,501
  58,051
  60,742
  63,579
  66,571
  69,722
  73,041
  76,536
  80,215
  84,085
  88,158
  92,441
Adjusted assets (=assets-cash), $m
  28,178
  28,744
  29,406
  30,161
  31,010
  31,950
  32,981
  34,105
  35,320
  36,630
  38,036
  39,540
  41,145
  42,853
  44,669
  46,596
  48,638
  50,800
  53,086
  55,501
  58,051
  60,742
  63,579
  66,571
  69,722
  73,041
  76,536
  80,215
  84,085
  88,158
  92,441
Revenue / Adjusted assets
  0.791
  0.791
  0.791
  0.791
  0.791
  0.791
  0.791
  0.791
  0.791
  0.791
  0.791
  0.791
  0.791
  0.791
  0.791
  0.791
  0.791
  0.791
  0.791
  0.791
  0.791
  0.791
  0.791
  0.791
  0.791
  0.791
  0.791
  0.791
  0.791
  0.791
  0.791
Average production assets, $m
  6,380
  6,503
  6,652
  6,823
  7,015
  7,228
  7,461
  7,715
  7,990
  8,287
  8,605
  8,945
  9,308
  9,695
  10,105
  10,541
  11,003
  11,492
  12,009
  12,556
  13,133
  13,741
  14,383
  15,060
  15,773
  16,524
  17,314
  18,147
  19,022
  19,944
  20,913
Working capital, $m
  32,686
  -2,160
  -2,210
  -2,266
  -2,330
  -2,401
  -2,478
  -2,563
  -2,654
  -2,753
  -2,858
  -2,971
  -3,092
  -3,220
  -3,357
  -3,501
  -3,655
  -3,817
  -3,989
  -4,171
  -4,362
  -4,564
  -4,778
  -5,002
  -5,239
  -5,489
  -5,751
  -6,028
  -6,319
  -6,625
  -6,946
Total debt, $m
  21,893
  13,023
  13,618
  14,298
  15,062
  15,908
  16,836
  17,847
  18,941
  20,120
  21,385
  22,739
  24,183
  25,721
  27,355
  29,090
  30,927
  32,873
  34,930
  37,104
  39,399
  41,821
  44,374
  47,066
  49,903
  52,890
  56,035
  59,346
  62,830
  66,495
  70,350
Total liabilities, $m
  34,740
  25,870
  26,465
  27,145
  27,909
  28,755
  29,683
  30,694
  31,788
  32,967
  34,232
  35,586
  37,030
  38,568
  40,202
  41,937
  43,774
  45,720
  47,777
  49,951
  52,246
  54,668
  57,221
  59,913
  62,750
  65,737
  68,882
  72,193
  75,677
  79,342
  83,197
Total equity, $m
  30,746
  2,874
  2,941
  3,016
  3,101
  3,195
  3,298
  3,410
  3,532
  3,663
  3,804
  3,954
  4,114
  4,285
  4,467
  4,660
  4,864
  5,080
  5,309
  5,550
  5,805
  6,074
  6,358
  6,657
  6,972
  7,304
  7,654
  8,021
  8,409
  8,816
  9,244
Total liabilities and equity, $m
  65,486
  28,744
  29,406
  30,161
  31,010
  31,950
  32,981
  34,104
  35,320
  36,630
  38,036
  39,540
  41,144
  42,853
  44,669
  46,597
  48,638
  50,800
  53,086
  55,501
  58,051
  60,742
  63,579
  66,570
  69,722
  73,041
  76,536
  80,214
  84,086
  88,158
  92,441
Debt-to-equity ratio
  0.712
  4.530
  4.630
  4.740
  4.860
  4.980
  5.100
  5.230
  5.360
  5.490
  5.620
  5.750
  5.880
  6.000
  6.120
  6.240
  6.360
  6.470
  6.580
  6.690
  6.790
  6.880
  6.980
  7.070
  7.160
  7.240
  7.320
  7.400
  7.470
  7.540
  7.610
Adjusted equity ratio
  -0.144
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  2,466
  3,962
  4,239
  4,354
  4,482
  4,624
  4,780
  4,949
  5,132
  5,330
  5,541
  6,251
  6,492
  6,749
  7,022
  7,311
  7,618
  7,943
  8,286
  8,649
  9,031
  9,435
  9,861
  10,310
  10,783
  11,281
  11,806
  12,358
  12,939
  13,550
  14,192
Depreciation, amort., depletion, $m
  1,461
  1,418
  1,436
  1,456
  1,478
  1,503
  1,530
  1,559
  1,591
  1,626
  1,663
  1,040
  1,082
  1,127
  1,175
  1,226
  1,279
  1,336
  1,396
  1,460
  1,527
  1,598
  1,672
  1,751
  1,834
  1,921
  2,013
  2,110
  2,212
  2,319
  2,432
Funds from operations, $m
  5,117
  5,381
  5,675
  5,809
  5,960
  6,127
  6,310
  6,509
  6,724
  6,955
  7,204
  7,291
  7,574
  7,876
  8,197
  8,537
  8,897
  9,279
  9,682
  10,109
  10,558
  11,033
  11,534
  12,061
  12,617
  13,203
  13,819
  14,468
  15,151
  15,869
  16,624
Change in working capital, $m
  424
  -42
  -50
  -57
  -64
  -71
  -78
  -84
  -91
  -98
  -106
  -113
  -121
  -128
  -136
  -145
  -153
  -162
  -172
  -181
  -192
  -202
  -213
  -225
  -237
  -249
  -263
  -276
  -291
  -306
  -322
Cash from operations, $m
  4,693
  5,423
  5,724
  5,866
  6,024
  6,198
  6,387
  6,593
  6,815
  7,054
  7,310
  7,404
  7,695
  8,005
  8,333
  8,682
  9,051
  9,441
  9,854
  10,290
  10,750
  11,235
  11,747
  12,286
  12,854
  13,452
  14,082
  14,744
  15,441
  16,175
  16,946
Maintenance CAPEX, $m
  0
  -742
  -756
  -774
  -793
  -816
  -840
  -868
  -897
  -929
  -964
  -1,001
  -1,040
  -1,082
  -1,127
  -1,175
  -1,226
  -1,279
  -1,336
  -1,396
  -1,460
  -1,527
  -1,598
  -1,672
  -1,751
  -1,834
  -1,921
  -2,013
  -2,110
  -2,212
  -2,319
New CAPEX, $m
  -690
  -123
  -150
  -171
  -192
  -213
  -233
  -254
  -275
  -296
  -318
  -340
  -363
  -387
  -411
  -436
  -462
  -489
  -517
  -546
  -577
  -609
  -642
  -677
  -713
  -751
  -791
  -832
  -876
  -921
  -969
Cash from investing activities, $m
  18,463
  -865
  -906
  -945
  -985
  -1,029
  -1,073
  -1,122
  -1,172
  -1,225
  -1,282
  -1,341
  -1,403
  -1,469
  -1,538
  -1,611
  -1,688
  -1,768
  -1,853
  -1,942
  -2,037
  -2,136
  -2,240
  -2,349
  -2,464
  -2,585
  -2,712
  -2,845
  -2,986
  -3,133
  -3,288
Free cash flow, $m
  23,156
  4,558
  4,819
  4,922
  5,038
  5,169
  5,313
  5,471
  5,643
  5,828
  6,028
  6,063
  6,292
  6,536
  6,795
  7,071
  7,363
  7,673
  8,001
  8,347
  8,713
  9,100
  9,507
  9,937
  10,390
  10,867
  11,370
  11,899
  12,456
  13,042
  13,658
Issuance/(repayment) of debt, $m
  10,202
  -6,375
  595
  680
  764
  846
  928
  1,011
  1,094
  1,179
  1,265
  1,354
  1,444
  1,538
  1,634
  1,734
  1,838
  1,945
  2,057
  2,174
  2,295
  2,422
  2,554
  2,692
  2,836
  2,987
  3,145
  3,311
  3,484
  3,665
  3,855
Issuance/(repurchase) of shares, $m
  -845
  2,979
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  9,131
  -3,396
  595
  680
  764
  846
  928
  1,011
  1,094
  1,179
  1,265
  1,354
  1,444
  1,538
  1,634
  1,734
  1,838
  1,945
  2,057
  2,174
  2,295
  2,422
  2,554
  2,692
  2,836
  2,987
  3,145
  3,311
  3,484
  3,665
  3,855
Total cash flow (excl. dividends), $m
  32,335
  1,162
  5,414
  5,602
  5,802
  6,015
  6,242
  6,482
  6,737
  7,007
  7,293
  7,417
  7,736
  8,074
  8,430
  8,805
  9,201
  9,618
  10,058
  10,521
  11,008
  11,521
  12,061
  12,629
  13,226
  13,855
  14,515
  15,209
  15,939
  16,707
  17,513
Retained Cash Flow (-), $m
  1,032
  -6,941
  -66
  -76
  -85
  -94
  -103
  -112
  -122
  -131
  -141
  -150
  -160
  -171
  -182
  -193
  -204
  -216
  -229
  -242
  -255
  -269
  -284
  -299
  -315
  -332
  -349
  -368
  -387
  -407
  -428
Prev. year cash balance distribution, $m
 
  34,813
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  29,034
  5,348
  5,526
  5,717
  5,921
  6,139
  6,370
  6,616
  6,876
  7,153
  7,266
  7,576
  7,903
  8,248
  8,612
  8,997
  9,402
  9,829
  10,279
  10,753
  11,252
  11,777
  12,330
  12,911
  13,523
  14,166
  14,842
  15,552
  16,299
  17,085
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  27,837
  4,895
  4,809
  4,708
  4,590
  4,455
  4,303
  4,135
  3,950
  3,750
  3,451
  3,233
  3,005
  2,769
  2,528
  2,286
  2,046
  1,810
  1,583
  1,366
  1,164
  977
  808
  658
  526
  413
  319
  241
  178
  129
Current shareholders' claim on cash, %
  100
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0

QUALCOMM Incorporated is engaged in the development and commercialization of a digital communication technology called code division multiple access (CDMA). The Company is engaged in the development and commercialization of the orthogonal frequency division multiple access (OFDMA) family of technologies, including long-term evolution (LTE), which is an Orthogonal Frequency Division Multiplexing (OFDM)-based standard that uses OFDMA and single-carrier Frequency Division Multiple Access (FDMA), for cellular wireless communication applications. The Company's segments include QCT (Qualcomm CDMA Technologies), QTL (Qualcomm Technology Licensing) and QSI (Qualcomm Strategic Initiatives). The Company also develops and commercializes a range of other technologies used in handsets and tablets that contribute to end user demand. The Company's products principally consist of integrated circuits (chips or chipsets) and system software used in mobile devices and in wireless networks.

FINANCIAL RATIOS  of  Qualcomm (QCOM)

Valuation Ratios
P/E Ratio 40.7
Price to Sales 4.5
Price to Book 3.3
Price to Tangible Book
Price to Cash Flow 21.4
Price to Free Cash Flow 25.1
Growth Rates
Sales Growth Rate -5.4%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 28%
Cap. Spend. - 3 Yr. Gr. Rate -10.3%
Financial Strength
Quick Ratio 15
Current Ratio 0.1
LT Debt to Equity 63.1%
Total Debt to Equity 71.2%
Interest Coverage 0
Management Effectiveness
Return On Assets 4.2%
Ret/ On Assets - 3 Yr. Avg. 8.6%
Return On Total Capital 5.1%
Ret/ On T. Cap. - 3 Yr. Avg. 10.4%
Return On Equity 7.9%
Return On Equity - 3 Yr. Avg. 13.6%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 58%
Gross Margin - 3 Yr. Avg. 59.5%
EBITDA Margin 20.1%
EBITDA Margin - 3 Yr. Avg. 28.5%
Operating Margin 11.1%
Oper. Margin - 3 Yr. Avg. 20%
Pre-Tax Margin 13.5%
Pre-Tax Margin - 3 Yr. Avg. 22.7%
Net Profit Margin 11.1%
Net Profit Margin - 3 Yr. Avg. 18.7%
Effective Tax Rate 18.4%
Eff/ Tax Rate - 3 Yr. Avg. 17.9%
Payout Ratio 131.9%

QCOM stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the QCOM stock intrinsic value calculation we used $22291 million for the last fiscal year's total revenue generated by Qualcomm. The default revenue input number comes from 2017 income statement of Qualcomm. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our QCOM stock valuation model: a) initial revenue growth rate of 2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for QCOM is calculated based on our internal credit rating of Qualcomm, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Qualcomm.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of QCOM stock the variable cost ratio is equal to 73.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for QCOM stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Qualcomm.

Corporate tax rate of 27% is the nominal tax rate for Qualcomm. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the QCOM stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for QCOM are equal to 28.6%.

Life of production assets of 8.6 years is the average useful life of capital assets used in Qualcomm operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for QCOM is equal to -9.5%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $30746 million for Qualcomm - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 1482.51 million for Qualcomm is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Qualcomm at the current share price and the inputted number of shares is $100.9 billion.

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COMPANY NEWS

▶ Prepare for these 5 tech stocks to move big on earnings   [Jan-20-18 03:56PM  MarketWatch]
▶ [$$] Canaccord Wants Qualcomm Independent   [12:01AM  Barrons.com]
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▶ Faber Report: Big week for activists   [09:40AM  CNBC Videos]
▶ Will the Qualcomm-NXP Deal Be Free at Last?   [09:03AM  Market Realist]
▶ [$$] Qualcomm Secures Antitrust Approvals for NXP Deal   [12:06AM  The Wall Street Journal]
▶ [$$] Qualcomm Secures Antitrust Approvals for NXP Deal   [01:42PM  The Wall Street Journal]
▶ Reports: FTC probing Broadcom for anti-competitive tactics   [09:25AM  American City Business Journals]
▶ [$$] FTC Probes Broadcom Over Negotiations With Customers   [04:23PM  The Wall Street Journal]
▶ How Micron Performed Last Week   [08:48AM  Market Realist]
▶ Top 3 Mutual Fund Holders of Qualcomm   [03:41PM  Investopedia]
▶ 3 High-Yield Stocks Still Worth Buying   [01:20PM  Motley Fool]
▶ Broadcom Issues Statement   [12:28PM  PR Newswire]
▶ Qualcomm's Stock Heads to a Crossroads   [06:00AM  Investopedia]
▶ Sprint Takes on Mediacom in Patent Challenge   [Jan-15-18 10:30AM  Market Realist]
▶ Company News For Jan 15, 2018   [09:43AM  Zacks]
▶ Qualcomm's Premium Smartphone Chip Problem   [Jan-13-18 04:32PM  Motley Fool]
▶ What's Up With Qualcomm's Bid for NXP Semiconductors?   [Jan-12-18 08:09PM  Motley Fool]
▶ 2 Dividend Stocks I'd Buy Right Now   [05:30PM  Motley Fool]
▶ Why 2017 Was an Important Year for Intel   [10:30AM  Market Realist]
▶ [$$] Qualcomm Set to Win European Approval for $39 Billion NXP Buy   [Jan-11-18 05:30PM  The Wall Street Journal]
▶ Got batteries? Outage stalls giant tech show in Las Vegas   [Jan-10-18 06:10PM  Associated Press]
▶ [$$] Mega Chip Deal Alarms Some Chinese Smartphone Makers   [12:48AM  The Wall Street Journal]
▶ CES 2018: Qualcomm's keynote report   [02:47PM  Tech Republic]
Financial statements of QCOM
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