Latest Ratios: P/E Ratio 39.6x · EV/EBITDA 15.5x · ROE 23.3%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $208.2B | $187.0B | $192.2B | $125.1B | $128.5B | $148.2B | $135.2B | $93.1B | $105.4B | $77.2B | $102.6B |
| Enterprise Value | $216.7B | $195.5B | $199.7B | $132.7B | $141.8B | $157.4B | $144.2B | $97.2B | $110.0B | $64.1B | $108.4B |
| P/E Ratio → | 39.57 | 33.77 | 18.94 | 17.30 | 9.93 | 16.39 | 26.04 | 21.19 | — | 31.61 | 17.98 |
| P/S Ratio | 4.70 | 4.22 | 4.93 | 3.49 | 2.91 | 4.42 | 5.75 | 3.83 | 4.64 | 3.47 | 4.36 |
| P/B Ratio | 10.33 | 8.82 | 7.31 | 5.79 | 7.13 | 14.89 | 22.25 | 18.96 | 113.56 | 2.51 | 3.23 |
| P/FCF | 16.24 | 14.58 | 17.22 | 12.70 | 18.80 | 17.14 | 30.68 | 14.54 | 33.87 | 19.30 | 14.96 |
| P/OCF | 14.86 | 13.34 | 15.75 | 11.07 | 14.12 | 14.07 | 23.26 | 12.77 | 27.06 | 16.46 | 13.87 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.41 | 5.13 | 3.70 | 3.21 | 4.69 | 6.13 | 4.00 | 4.84 | 2.88 | 4.60 |
| EV / EBITDA | 15.53 | 14.01 | 16.96 | 13.82 | 8.05 | 13.84 | 18.86 | 10.71 | 50.40 | 15.86 | 13.68 |
| EV / EBIT | 17.54 | 14.67 | 18.10 | 16.30 | 9.16 | 14.53 | 23.16 | 12.02 | 29.14 | 18.24 | 15.92 |
| EV / FCF | — | 15.25 | 17.90 | 13.47 | 20.76 | 18.20 | 32.73 | 15.18 | 35.35 | 16.01 | 15.80 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 55.4% | 55.4% | 56.2% | 55.7% | 57.8% | 57.5% | 60.7% | 64.6% | 54.9% | 56.1% | 58.6% |
| Operating Margin | 27.9% | 27.9% | 25.8% | 21.7% | 35.9% | 29.2% | 26.6% | 31.6% | 2.7% | 11.6% | 27.6% |
| Net Profit Margin | 12.5% | 12.5% | 26.0% | 20.2% | 29.3% | 26.9% | 22.1% | 18.1% | -21.8% | 11.1% | 24.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 23.3% | 23.3% | 42.4% | 36.5% | 92.5% | 112.8% | 94.6% | 150.3% | -31.3% | 7.9% | 18.1% |
| ROA | 10.5% | 10.5% | 19.1% | 14.5% | 28.7% | 23.5% | 15.2% | 13.4% | -10.1% | 4.2% | 11.1% |
| ROIC | 29.1% | 29.1% | 24.0% | 19.3% | 47.1% | 42.9% | 38.9% | 79.2% | 4.0% | 7.0% | 13.5% |
| ROCE | 28.9% | 28.9% | 23.4% | 19.8% | 47.7% | 34.8% | 24.6% | 33.7% | 1.6% | 5.2% | 14.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.77 | 0.77 | 0.59 | 0.74 | 0.90 | 1.64 | 2.59 | 3.25 | 17.64 | 0.71 | 0.37 |
| Debt / EBITDA | 1.17 | 1.17 | 1.31 | 1.67 | 0.92 | 1.43 | 2.06 | 1.76 | 7.50 | 5.42 | 1.48 |
| Net Debt / Equity | — | 0.40 | 0.29 | 0.35 | 0.74 | 0.92 | 1.48 | 0.83 | 4.95 | -0.43 | 0.18 |
| Net Debt / EBITDA | 0.61 | 0.61 | 0.64 | 0.79 | 0.76 | 0.81 | 1.18 | 0.45 | 2.10 | -3.25 | 0.73 |
| Debt / FCF | — | 0.67 | 0.68 | 0.77 | 1.96 | 1.06 | 2.05 | 0.64 | 1.48 | -3.28 | 0.85 |
| Interest Coverage | 20.07 | 20.07 | 15.83 | 11.72 | 31.61 | 19.38 | 10.34 | 12.89 | 4.91 | 7.11 | 22.94 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.82 | 2.82 | 2.40 | 2.33 | 1.75 | 1.68 | 2.14 | 1.88 | 1.55 | 4.00 | 3.14 |
| Quick Ratio | 1.94 | 1.94 | 1.79 | 1.67 | 1.15 | 1.41 | 1.84 | 1.72 | 1.40 | 3.81 | 2.93 |
| Cash Ratio | 1.36 | 1.36 | 1.27 | 1.18 | 0.54 | 1.04 | 1.29 | 1.37 | 1.08 | 3.42 | 2.55 |
| Asset Turnover | — | 0.88 | 0.71 | 0.70 | 0.90 | 0.81 | 0.66 | 0.74 | 0.70 | 0.34 | 0.45 |
| Inventory Turnover | 2.46 | 2.46 | 2.66 | 2.47 | 2.65 | 4.42 | 3.56 | 6.14 | 6.05 | 4.81 | 6.27 |
| Days Sales Outstanding | — | 35.57 | 36.81 | 32.43 | 46.60 | 38.92 | 62.09 | 37.16 | 46.63 | 59.47 | 34.39 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.7% | 2.0% | 1.9% | 2.8% | 2.5% | 2.0% | 2.1% | 3.2% | 3.3% | 4.2% | 2.9% |
| Payout Ratio | 68.7% | 68.7% | 36.4% | 47.9% | 24.8% | 33.3% | 55.4% | 67.7% | — | 131.9% | 52.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.5% | 3.0% | 5.3% | 5.8% | 10.1% | 6.1% | 3.8% | 4.7% | — | 3.2% | 5.6% |
| FCF Yield | 6.2% | 6.9% | 5.8% | 7.9% | 5.3% | 5.8% | 3.3% | 6.9% | 3.0% | 5.2% | 6.7% |
| Buyback Yield | 4.2% | 4.7% | 2.1% | 2.4% | 2.4% | 2.3% | 1.8% | 1.9% | 21.4% | 1.7% | 3.8% |
| Total Shareholder Yield | 6.0% | 6.7% | 4.1% | 5.1% | 4.9% | 4.3% | 3.9% | 5.1% | 24.7% | 5.9% | 6.7% |
| Shares Outstanding | — | $1.1B | $1.1B | $1.1B | $1.1B | $1.1B | $1.1B | $1.2B | $1.5B | $1.5B | $1.5B |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying QCOM stock.
QUALCOMM Incorporated's current P/E ratio is 39.6x. The historical average is 37.2x. This places it at the 75th percentile of its historical range.
QUALCOMM Incorporated's current EV/EBITDA is 15.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 22.2x.
QUALCOMM Incorporated's return on equity (ROE) is 23.3%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 27.2%.
Based on historical data, QUALCOMM Incorporated is trading at a P/E of 39.6x. This is at the 75th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
QUALCOMM Incorporated's current dividend yield is 1.74% with a payout ratio of 68.7%.
QUALCOMM Incorporated has 55.4% gross margin and 27.9% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
QUALCOMM Incorporated's Debt/EBITDA ratio is 1.2x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Memory cost and demand softness
Metrics are mathematically derived from official filings.
Margin Compression from Input Costs
Gross margin slipped from 56.4% in 2024Q4 to 53.1% in 2026Q3, a 330 bps decline, according to recent financial statements, reflecting rising memory costs and a richer mix of lower-margin hardware.
The 330 bps gross margin erosion is notable because it occurred while revenue contracted, indicating that input cost inflation is not being fully passed through to customers. Operating margin fell even more sharply, from 30.5% in 2025Q1 to 16.3% in 2026Q3, suggesting that R&D and SG&A costs are sticky and amplifying the impact of lower gross margins. This implies that the company's earning power is currently being squeezed by cyclical supply costs, and investors should monitor whether management can restore margins as memory prices normalize.
ROIC Volatility Masks Core Returns
ROIC swung from 8.4% in 2026Q1 to 3.2% in 2026Q3, based on reported figures, reflecting both cyclical earnings pressure and a rising capital base from acquisitions like NUVIA.
The quarterly ROIC figures are distorted by one-time items and working capital swings, but the trend from 5.7% in 2024Q2 to 3.2% in 2026Q3 suggests a meaningful decline in return on invested capital. This appears driven by both margin compression and an expanding capital base, as goodwill surged 32% over the period. The company's ability to generate returns above its cost of capital is being tested, and the success of the automotive and PC diversification will be critical to reversing this trend.
Working Capital Cycle Lengthens
Cash conversion cycle extended from 119 days in 2024Q2 to 137 days in 2026Q3, as reported in financial statements, driven by a 24-day increase in days inventory outstanding.
The lengthening CCC is primarily due to DIO rising from 137 to 153 days, which may indicate inventory build-up ahead of new product launches or slower demand. DSO also increased from 32 to 41 days, suggesting customers are taking longer to pay, possibly reflecting weaker negotiating power or a shift in customer mix. These trends imply that working capital is absorbing more cash, which is consistent with the sharp decline in free cash flow margin from 36.9% to 5.0% over the same period.
Leverage Creeps Higher but Manageable
Debt-to-EBITDA rose from 3.65 in 2025Q1 to 7.55 in 2026Q3, according to recent SEC filings, while interest coverage remains comfortable at 14.8x, indicating rising but serviceable leverage.
The D/EBITDA increase is partly due to declining EBITDA, not just higher debt, as total debt only rose modestly from $14.6B to $15.3B. Interest coverage of 14.8x suggests that debt service is not currently a concern, but the trend warrants monitoring if EBITDA continues to contract. The company's balance sheet remains healthy, but the combination of rising leverage and falling cash reserves (from $9.2B to $4.5B) suggests a thinner buffer against operational shocks.
Liquidity Buffer Thins
Current ratio fell from 2.65 in 2024Q2 to 2.02 in 2026Q3, while cash dropped from $9.2B to $4.5B, based on reported figures, indicating a shrinking cushion against cyclical downturns.
Although the current ratio remains above 2.0, the rapid decline in cash reserves and the lengthening cash conversion cycle suggest that liquidity is being consumed by working capital needs and capital returns. The quick ratio of 1.28 in 2026Q3 is still adequate, but it has fallen from 1.98 in 2024Q2, reflecting a growing reliance on inventory to meet short-term obligations. This trend implies that the company has less flexibility to absorb a prolonged downturn without tapping debt markets or reducing capital returns.
P/E Misleads on Earnings Power
The trailing P/E of 31.4x is distorted by one-time gains and losses, while the forward P/E of 14.8x better reflects normalized earnings, as reported in valuation data.
The most commonly misapplied ratio for QCOM is the trailing P/E, which has been skewed by volatile net income figures, including a -$3.1B loss in 2025Q4 and a $7.4B gain in 2026Q2. Investors should instead focus on EV/EBITDA (12.5x) or forward P/E, which strip out non-operating items and provide a cleaner view of ongoing earning power. The wide gap between trailing and forward multiples highlights the market's expectation of earnings normalization, but also underscores the need to adjust for one-time items when assessing valuation.