QUALCOMM Incorporated (QCOM)
Valuation Overview•Is QUALCOMM Incorporated Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
High-quality fundamentals with a strong composite quality score of 77/100, backed by robust profitability and solvency.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
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Verdict: Solid fundamental quality, though growth presents a headwind.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. This outlook is strongly supported by highly attractive capital returns, driven by a balanced mix of reliable dividends and share buybacks.
QCOM exhibits elite business quality, driven by exceptional capital efficiency and highly lucrative margins. This is supported by a highly conservative balance sheet featuring strong liquidity and pristine Altman Z safety.
The company demonstrates solid revenue growth (6.4% 3Y CAGR) paired with highly explosive earnings growth (25.5% EPS 3Y CAGR). The company maintains healthy operational efficiency with a 20.1% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $10.3B | -2.6% | +6.4% | +5.1% | +6.2% | |
| EBITDA | $1.8B | — | +2.3% | — | — | |
| Net Income | $1.3B | +145.9% | +23.5% | — | +9.1% | |
| EPS (Diluted) | $1.17 | +153.5% | +25.5% | +10.0% | +12.8% | |
| Free Cash Flow | $1.8B | -32.5% | -4.2% | +0.0% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 53.1% | 54.9% | 55.7% | 57.2% |
| Operating Margin | 20.1% | 24.6% | 26.3% | 23.3% |
| Net Margin | 31.6% | 23.4% | 23.9% | 17.6% |
| FCF Margin | 20.1% | 25.9% | 24.1% | 22.3% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q4'26Latest | $2.16 | $2.17 | +0.5% | ||
| Q3'26 | $2.23 | $2.21 | -0.9% | ||
| Q2'26 | $2.56 | $2.65 | +3.5% | ||
| Q1'26 | $3.39 | $3.50 | +3.2% | ||
| Q4'25 | $2.87 | $3.00 | +4.5% | ||
| Q3'25 | $2.71 | $2.77 | +2.2% | ||
| Q2'25 | $2.82 | $2.85 | +1.1% | ||
| Q1'25 | $2.96 | $3.41 | +15.2% |
Total return is -2.4% (1Y), lagging the benchmark by -12.1%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -2.8% | -10.4% | — |
| 1Y | -2.4% | -12.1% | +2.1% |
| 3YCAGR | +13.6% | -7.4% | +8.7% |
| 5YCAGR | +1.9% | -8.5% | +9.9% |
| 10YCAGR | +11.0% | -2.7% | — |
The S&P 500 is at 29.9x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about QUALCOMM Incorporated (QCOM) valuation, health, and returns.
QUALCOMM Incorporated is estimated to be fair under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. trading near fair value (DCF: $184.58)
QUALCOMM Incorporated has multiple valuation anchors: DCF Intrinsic Value: $184.58 | Peer Relative Fair Value: $357.74 | Wall Street Analyst Target: $205.50 (implying +24.2% upside). A convergence of these signals offers higher conviction.
QUALCOMM Incorporated displays good financial health with a composite quality score of 77/100, supported by a Altman Z-Score of 5.8 (safe zone), Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 18.2%.
QUALCOMM Incorporated pays a 2.2% dividend yield, covered by a 28% payout ratio with 22 years of growth, supplemented by a 4.5% buyback yield.
QUALCOMM Incorporated's current growth trajectory is Decelerating. The company achieved -2.6% 1Y revenue growth and +153.5% 1Y EPS growth, compared to its 3Y revenue CAGR of +6.4%.
Wall Street consensus is Hold based on 69 analysts, beating EPS expectations in 92% of recent quarters with a 1-quarter streak. The consensus price target represents a +24.2% change from current levels.
Investment risks for QUALCOMM Incorporated include: -41.2% 1-year max drawdown, high beta (2.14x market volatility). Volatility risk is characterized by a beta of 2.14x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.