Intrinsic value of QUALCOMM Incorporated - QCOM

Previous Close

$56.82

  Intrinsic Value

$12.17

stock screener

  Rating & Target

str. sell

-79%

Previous close

$56.82

 
Intrinsic value

$12.17

 
Up/down potential

-79%

 
Rating

str. sell

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

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 68.8

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  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
  23,187
  23,720
  24,330
  25,014
  25,772
  26,604
  27,510
  28,491
  29,548
  30,682
  31,895
  33,189
  34,568
  36,032
  37,587
  39,234
  40,978
  42,821
  44,770
  46,827
  48,997
  51,286
  53,699
  56,241
  58,919
  61,738
  64,705
  67,827
  71,112
  74,567
Variable operating expenses, $m
  20,455
  20,904
  21,417
  21,992
  22,630
  23,331
  24,093
  24,918
  25,807
  26,761
  26,837
  27,926
  29,086
  30,318
  31,626
  33,012
  34,479
  36,031
  37,670
  39,401
  41,227
  43,153
  45,183
  47,322
  49,575
  51,947
  54,444
  57,071
  59,835
  62,742
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
  20,455
  20,904
  21,417
  21,992
  22,630
  23,331
  24,093
  24,918
  25,807
  26,761
  26,837
  27,926
  29,086
  30,318
  31,626
  33,012
  34,479
  36,031
  37,670
  39,401
  41,227
  43,153
  45,183
  47,322
  49,575
  51,947
  54,444
  57,071
  59,835
  62,742
Operating income, $m
  2,732
  2,816
  2,913
  3,022
  3,142
  3,274
  3,417
  3,573
  3,741
  3,920
  5,058
  5,263
  5,482
  5,714
  5,961
  6,222
  6,498
  6,791
  7,100
  7,426
  7,770
  8,133
  8,516
  8,919
  9,344
  9,791
  10,261
  10,756
  11,277
  11,825
EBITDA, $m
  4,666
  4,773
  4,896
  5,034
  5,186
  5,354
  5,536
  5,733
  5,946
  6,174
  6,418
  6,679
  6,956
  7,251
  7,564
  7,895
  8,246
  8,617
  9,009
  9,423
  9,860
  10,321
  10,806
  11,318
  11,857
  12,424
  13,021
  13,649
  14,310
  15,006
Interest expense (income), $m
  0
  884
  752
  788
  828
  874
  924
  979
  1,039
  1,104
  1,174
  1,249
  1,330
  1,416
  1,507
  1,604
  1,707
  1,816
  1,932
  2,054
  2,183
  2,320
  2,464
  2,615
  2,775
  2,944
  3,122
  3,308
  3,505
  3,712
  3,930
Earnings before tax, $m
  1,848
  2,064
  2,125
  2,193
  2,268
  2,350
  2,438
  2,534
  2,636
  2,746
  3,809
  3,934
  4,066
  4,207
  4,357
  4,515
  4,682
  4,859
  5,046
  5,243
  5,450
  5,669
  5,900
  6,144
  6,400
  6,669
  6,953
  7,251
  7,565
  7,895
Tax expense, $m
  499
  557
  574
  592
  612
  634
  658
  684
  712
  741
  1,028
  1,062
  1,098
  1,136
  1,176
  1,219
  1,264
  1,312
  1,362
  1,415
  1,472
  1,531
  1,593
  1,659
  1,728
  1,801
  1,877
  1,958
  2,043
  2,132
Net income, $m
  1,349
  1,507
  1,551
  1,601
  1,656
  1,715
  1,780
  1,850
  1,925
  2,005
  2,780
  2,871
  2,968
  3,071
  3,180
  3,296
  3,418
  3,547
  3,683
  3,827
  3,979
  4,139
  4,307
  4,485
  4,672
  4,868
  5,076
  5,293
  5,523
  5,764

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $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 assets, $m
  31,633
  32,360
  33,192
  34,125
  35,160
  36,295
  37,531
  38,869
  40,311
  41,858
  43,513
  45,279
  47,159
  49,157
  51,278
  53,525
  55,904
  58,419
  61,077
  63,884
  66,845
  69,968
  73,259
  76,727
  80,380
  84,226
  88,274
  92,534
  97,015
  101,729
Adjusted assets (=assets-cash), $m
  31,633
  32,360
  33,192
  34,125
  35,160
  36,295
  37,531
  38,869
  40,311
  41,858
  43,513
  45,279
  47,159
  49,157
  51,278
  53,525
  55,904
  58,419
  61,077
  63,884
  66,845
  69,968
  73,259
  76,727
  80,380
  84,226
  88,274
  92,534
  97,015
  101,729
Revenue / Adjusted assets
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
Average production assets, $m
  8,208
  8,397
  8,613
  8,855
  9,123
  9,418
  9,739
  10,086
  10,460
  10,861
  11,291
  11,749
  12,237
  12,755
  13,306
  13,889
  14,506
  15,159
  15,848
  16,577
  17,345
  18,155
  19,009
  19,909
  20,857
  21,855
  22,906
  24,011
  25,174
  26,397
Working capital, $m
  -5,194
  -5,313
  -5,450
  -5,603
  -5,773
  -5,959
  -6,162
  -6,382
  -6,619
  -6,873
  -7,144
  -7,434
  -7,743
  -8,071
  -8,419
  -8,788
  -9,179
  -9,592
  -10,028
  -10,489
  -10,975
  -11,488
  -12,029
  -12,598
  -13,198
  -13,829
  -14,494
  -15,193
  -15,929
  -16,703
Total debt, $m
  13,933
  14,588
  15,337
  16,177
  17,108
  18,130
  19,242
  20,446
  21,744
  23,136
  24,626
  26,215
  27,907
  29,706
  31,614
  33,637
  35,777
  38,041
  40,434
  42,959
  45,624
  48,435
  51,397
  54,519
  57,806
  61,268
  64,911
  68,744
  72,778
  77,020
Total liabilities, $m
  28,469
  29,124
  29,873
  30,713
  31,644
  32,666
  33,778
  34,982
  36,280
  37,672
  39,162
  40,751
  42,443
  44,242
  46,150
  48,173
  50,313
  52,577
  54,970
  57,495
  60,160
  62,971
  65,933
  69,055
  72,342
  75,804
  79,447
  83,280
  87,314
  91,556
Total equity, $m
  3,163
  3,236
  3,319
  3,413
  3,516
  3,630
  3,753
  3,887
  4,031
  4,186
  4,351
  4,528
  4,716
  4,916
  5,128
  5,353
  5,590
  5,842
  6,108
  6,388
  6,684
  6,997
  7,326
  7,673
  8,038
  8,423
  8,827
  9,253
  9,702
  10,173
Total liabilities and equity, $m
  31,632
  32,360
  33,192
  34,126
  35,160
  36,296
  37,531
  38,869
  40,311
  41,858
  43,513
  45,279
  47,159
  49,158
  51,278
  53,526
  55,903
  58,419
  61,078
  63,883
  66,844
  69,968
  73,259
  76,728
  80,380
  84,227
  88,274
  92,533
  97,016
  101,729
Debt-to-equity ratio
  4.400
  4.510
  4.620
  4.740
  4.870
  5.000
  5.130
  5.260
  5.390
  5.530
  5.660
  5.790
  5.920
  6.040
  6.170
  6.280
  6.400
  6.510
  6.620
  6.720
  6.830
  6.920
  7.020
  7.110
  7.190
  7.270
  7.350
  7.430
  7.500
  7.570
Adjusted equity ratio
  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
  1,349
  1,507
  1,551
  1,601
  1,656
  1,715
  1,780
  1,850
  1,925
  2,005
  2,780
  2,871
  2,968
  3,071
  3,180
  3,296
  3,418
  3,547
  3,683
  3,827
  3,979
  4,139
  4,307
  4,485
  4,672
  4,868
  5,076
  5,293
  5,523
  5,764
Depreciation, amort., depletion, $m
  1,934
  1,957
  1,983
  2,012
  2,045
  2,080
  2,119
  2,160
  2,206
  2,254
  1,360
  1,416
  1,474
  1,537
  1,603
  1,673
  1,748
  1,826
  1,909
  1,997
  2,090
  2,187
  2,290
  2,399
  2,513
  2,633
  2,760
  2,893
  3,033
  3,180
Funds from operations, $m
  3,283
  3,464
  3,534
  3,613
  3,700
  3,795
  3,899
  4,010
  4,130
  4,259
  4,141
  4,287
  4,443
  4,608
  4,783
  4,969
  5,166
  5,373
  5,593
  5,824
  6,069
  6,326
  6,598
  6,884
  7,185
  7,502
  7,835
  8,186
  8,555
  8,944
Change in working capital, $m
  -102
  -119
  -137
  -153
  -170
  -186
  -203
  -220
  -237
  -254
  -272
  -290
  -309
  -328
  -348
  -369
  -391
  -413
  -436
  -461
  -486
  -513
  -540
  -569
  -600
  -631
  -665
  -699
  -736
  -774
Cash from operations, $m
  3,385
  3,583
  3,671
  3,767
  3,870
  3,982
  4,102
  4,230
  4,367
  4,513
  4,412
  4,577
  4,751
  4,936
  5,132
  5,338
  5,556
  5,786
  6,029
  6,285
  6,555
  6,839
  7,138
  7,453
  7,784
  8,133
  8,500
  8,886
  9,291
  9,718
Maintenance CAPEX, $m
  -970
  -989
  -1,012
  -1,038
  -1,067
  -1,099
  -1,135
  -1,173
  -1,215
  -1,260
  -1,309
  -1,360
  -1,416
  -1,474
  -1,537
  -1,603
  -1,673
  -1,748
  -1,826
  -1,909
  -1,997
  -2,090
  -2,187
  -2,290
  -2,399
  -2,513
  -2,633
  -2,760
  -2,893
  -3,033
New CAPEX, $m
  -159
  -189
  -216
  -242
  -268
  -295
  -321
  -347
  -374
  -401
  -429
  -458
  -488
  -519
  -550
  -583
  -617
  -653
  -690
  -728
  -768
  -810
  -854
  -900
  -948
  -998
  -1,050
  -1,105
  -1,163
  -1,223
Cash from investing activities, $m
  -1,129
  -1,178
  -1,228
  -1,280
  -1,335
  -1,394
  -1,456
  -1,520
  -1,589
  -1,661
  -1,738
  -1,818
  -1,904
  -1,993
  -2,087
  -2,186
  -2,290
  -2,401
  -2,516
  -2,637
  -2,765
  -2,900
  -3,041
  -3,190
  -3,347
  -3,511
  -3,683
  -3,865
  -4,056
  -4,256
Free cash flow, $m
  2,256
  2,405
  2,443
  2,487
  2,535
  2,588
  2,646
  2,709
  2,778
  2,851
  2,674
  2,758
  2,848
  2,943
  3,045
  3,152
  3,266
  3,386
  3,513
  3,647
  3,789
  3,939
  4,097
  4,263
  4,438
  4,622
  4,816
  5,021
  5,236
  5,462
Issuance/(repayment) of debt, $m
  -2,437
  655
  748
  840
  931
  1,022
  1,112
  1,204
  1,297
  1,392
  1,490
  1,589
  1,692
  1,799
  1,908
  2,022
  2,141
  2,264
  2,392
  2,526
  2,665
  2,811
  2,963
  3,121
  3,287
  3,461
  3,643
  3,834
  4,033
  4,242
Issuance/(repurchase) of shares, $m
  1,706
  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  
  -731
  655
  748
  840
  931
  1,022
  1,112
  1,204
  1,297
  1,392
  1,490
  1,589
  1,692
  1,799
  1,908
  2,022
  2,141
  2,264
  2,392
  2,526
  2,665
  2,811
  2,963
  3,121
  3,287
  3,461
  3,643
  3,834
  4,033
  4,242
Total cash flow (excl. dividends), $m
  1,526
  3,060
  3,192
  3,327
  3,466
  3,610
  3,759
  3,914
  4,075
  4,243
  4,164
  4,348
  4,540
  4,742
  4,953
  5,174
  5,406
  5,650
  5,905
  6,173
  6,454
  6,749
  7,059
  7,384
  7,725
  8,084
  8,460
  8,854
  9,269
  9,704
Retained Cash Flow (-), $m
  -3,055
  -73
  -83
  -93
  -103
  -114
  -124
  -134
  -144
  -155
  -166
  -177
  -188
  -200
  -212
  -225
  -238
  -252
  -266
  -281
  -296
  -312
  -329
  -347
  -365
  -385
  -405
  -426
  -448
  -471
Prev. year cash balance distribution, $m
  699
  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
  -831
  2,987
  3,109
  3,234
  3,363
  3,496
  3,635
  3,780
  3,931
  4,089
  3,998
  4,171
  4,352
  4,542
  4,741
  4,950
  5,169
  5,398
  5,639
  5,892
  6,158
  6,437
  6,730
  7,037
  7,360
  7,699
  8,055
  8,428
  8,821
  9,233
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
  -796
  2,735
  2,705
  2,663
  2,606
  2,537
  2,456
  2,362
  2,258
  2,143
  1,899
  1,780
  1,655
  1,525
  1,392
  1,258
  1,125
  994
  868
  749
  637
  534
  441
  358
  286
  225
  173
  130
  96
  70
Current shareholders' claim on cash, %
  38.8
  38.8
  38.8
  38.8
  38.8
  38.8
  38.8
  38.8
  38.8
  38.8
  38.8
  38.8
  38.8
  38.8
  38.8
  38.8
  38.8
  38.8
  38.8
  38.8
  38.8
  38.8
  38.8
  38.8
  38.8
  38.8
  38.8
  38.8
  38.8
  38.8

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 Incorporated (QCOM)

Valuation Ratios
P/E Ratio 34
Price to Sales 3.8
Price to Book 2.7
Price to Tangible Book
Price to Cash Flow 17.8
Price to Free Cash Flow 20.9
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 $22732 million for the last fiscal year's total revenue generated by QUALCOMM Incorporated. The default revenue input number comes from 0001 income statement of QUALCOMM Incorporated. 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 Incorporated, 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 Incorporated.
    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 88.3%.

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 5.4% for QUALCOMM Incorporated.

Corporate tax rate of 27% is the nominal tax rate for QUALCOMM Incorporated. 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 35.4%.

Life of production assets of 8.3 years is the average useful life of capital assets used in QUALCOMM Incorporated 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 -22.4%. 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 - $807 million for QUALCOMM Incorporated - 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 1210.247 million for QUALCOMM Incorporated 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 Incorporated at the current share price and the inputted number of shares is $68.8 billion.

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