MMarketMath

QCOM

Fast growerQuality: High (84/100)

Qualcomm · Information Technology · Semiconductors

$158.53

52w 121.99 – 259.92

20y monthly, adjusted

Mkt cap

$166.5B

P/E

30.5

P/FCF

13.2

FCF yield

7.6%

ROE

26.1%

Shldr yield

5.2%

div 0.0% + bb 5.2%

What today's price assumes

At $166.5B, the market is pricing in 2.0% annual free-cash-flow growth for the next decade (10% discount rate, 2.5% terminal growth). Over the last ten years, FCF actually grew 11.0% per year — expectations look undemanding relative to history.

Simple DCF per-share range: $186 · $311 · $388 (4% / base / optimistic growth). An estimate, not a target.

Adjust the assumptions yourself →

Historical multiple lens

At its own median P/OCF of 12.1× across 19 years, QCOM would trade near $162/share (25th–75th percentile: $150–$177); it trades at 11.9× today.

Assumes the historical multiple regime persists — re-ratings can be permanent.

Growth record

Compound annual growth rates from as-filed 10-K data, split-adjusted

Rev 3y

+0.1%

Rev 5y

+13.5%

Rev 10y

+5.8%

EPS 5y

+2.1%

EPS 10y

+4.5%

FCF 5y

+23.8%

FCF 10y

+11.0%

Fundamentals

Fiscal 2007–2025, from SEC filings

Revenue

2007: $8.9B
2008: $11.1B
2009: $10.4B
2010: $11.0B
2011: $15.0B
2012: $19.1B
2013: $24.9B
2014: $26.5B
2015: $25.3B
2016: $23.6B
2017: $22.3B
2018: $22.6B
2019: $24.3B
2020: $23.5B
2021: $33.6B
2022: $44.2B
2023: $35.8B
2024: $39.0B
2025: $44.3B
$0$20.0B$40.0B
07
11
15
19
23

Net income

2007: $3.3B
2008: $3.2B
2009: $1.6B
2010: $3.2B
2011: $4.3B
2012: $6.1B
2013: $6.9B
2014: $8.0B
2015: $5.3B
2016: $5.7B
2017: $2.4B
2018: −$5.0B
2019: $4.4B
2020: $5.2B
2021: $9.0B
2022: $12.9B
2023: $7.2B
2024: $10.1B
2025: $5.5B
$0$5.0B$10.0B
07
11
15
19
23

Free cash flow

2007: $3.0B
2008: $2.2B
2009: $6.4B
2010: $3.6B
2011: $4.3B
2012: $4.7B
2013: $7.7B
2014: $7.7B
2015: $4.5B
2016: $7.1B
2017: $4.3B
2018: $3.1B
2019: $6.4B
2020: $4.4B
2021: $8.6B
2022: $6.8B
2023: $9.8B
2024: $11.2B
2025: $12.8B
$0$5.0B$10.0B
07
11
15
19
23

Diluted shares (lower is better)

2007: 1.7B
2008: 1.7B
2009: 1.7B
2010: 1.7B
2011: 1.7B
2012: 1.7B
2013: 1.8B
2014: 1.7B
2015: 1.6B
2016: 1.5B
2017: 1.5B
2018: 1.5B
2019: 1.2B
2020: 1.1B
2021: 1.1B
2022: 1.1B
2023: 1.1B
2024: 1.1B
2025: 1.1B
0500.0M1.0B1.5B
07
11
15
19
23

Margins

-25%0%25%50%07101316192225
Net marginFCF marginGross margin

Capital returned (dividends + buybacks)

2007: $2.3B
2008: $2.7B
2009: $1.4B
2010: $4.2B
2011: $1.5B
2012: $2.9B
2013: $6.7B
2014: $7.2B
2015: $11.2B
2016: $3.9B
2017: $1.3B
2018: $22.6B
2019: $1.8B
2020: $2.5B
2021: $3.4B
2022: $3.1B
2023: $3.0B
2024: $4.1B
2025: $8.8B
$0$10.0B$20.0B
07
11
15
19
23

Cash vs long-term debt

$0$20.0B07101316192225
CashLT debt

Quarterly

Discrete quarters from 10-Q filings; Q4 derived as fiscal year minus Q1–Q3. OCF is unwound from the year-to-date figures 10-Qs report. Compare to the same quarter a year ago — most businesses are seasonal.

Revenue by quarter

Q3'23: $8.5B
Q4'23: $8.6B
Q1'24: $9.9B
Q2'24: $9.4B
Q3'24: $9.4B
Q4'24: $10.2B
Q1'25: $11.7B
Q2'25: $11.0B
Q3'25: $10.4B
Q4'25: $11.3B
Q1'26: $12.3B
Q2'26: $10.6B
Q3'26: $9.9B
$0$5.0B$10.0B
23
24
25
25
26

Net income by quarter

Q3'23: $1.8B
Q4'23: $1.5B
Q1'24: $2.8B
Q2'24: $2.3B
Q3'24: $2.1B
Q4'24: $2.9B
Q1'25: $3.2B
Q2'25: $2.8B
Q3'25: $2.7B
Q4'25: −$3.1B
Q1'26: $3.0B
Q2'26: $7.4B
Q3'26: $2.0B
$0$5.0B
23
24
25
25
26
QuarterRevenueYoYNet incomeYoYEPSOCF
Q3'26$9.9B−4.0%$2.0B−24.9%1.87$991.0M
Q2'26$10.6B−3.5%$7.4B+162.1%6.88$2.4B
Q1'26$12.3B+5.0%$3.0B−5.5%2.78$5.0B
Q4'25 *$11.3B+10.0%−$3.1B−206.7%-2.77$4.0B
Q3'25$10.4B+10.3%$2.7B+25.2%2.43$2.9B
Q2'25$11.0B+16.9%$2.8B+20.9%2.52$2.6B
Q1'25$11.7B+17.5%$3.2B+14.9%2.83$4.6B
Q4'24 *$10.2B+18.7%$2.9B+96.0%2.57$2.6B
Q3'24$9.4B+11.1%$2.1B+18.1%1.88$3.1B
Q2'24$9.4B+1.2%$2.3B+36.5%2.06$3.6B
Q1'24$9.9B+5.0%$2.8B+23.8%2.46$2.9B
Q4'23 *$8.6B−24.3%$1.5B−48.1%1.32$4.1B
Q3'23$8.5B−22.7%$1.8B−51.7%1.60$2.7B

Track record

Compound annual growth by period. For debt and share count, negative is the good direction.

Series3y5y10y15y
Revenue+0.1%+13.5%+5.8%+9.7%
Operating cash flow+15.5%+19.2%+9.8%+8.6%
Free cash flow+23.3%+23.8%+11.0%+8.7%
EPS (diluted)−23.9%+2.1%+4.5%+6.5%
Equity+5.6%+28.4%−3.9%+0.1%
LT debt+3.0%−0.6%+4.0%
Diluted shares−0.9%−0.8%−3.9%−2.7%
Stock price+13.6%+3.8%+12.6%+10.6%

$100, 3 years ago

$147vs $176 in SPY

13.6% vs 20.7%/yr

$100, 5 years ago

$120vs $181 in SPY

3.8% vs 12.6%/yr

$100, 10 years ago

$327vs $412 in SPY

12.6% vs 15.2%/yr

$100, 15 years ago

$452vs $813 in SPY

10.6% vs 15.0%/yr

The $1 test — market value created per $1 of earnings retained (Buffett's hurdle: at least $1)

Last 5 years

$1.59

$71.4B created / $44.9B retained

Last 10 years

$2.17

$124.9B created / $57.7B retained

Quality & capital discipline

Cash-based returns and how management deploys capital

Cash ROIC

38.9%

OCF ÷ (equity + debt)

OCF / EV yield

7.9%

MC vs 10× OCF

1.20

≤1 = priced under 10× OCF

Debt / FCF

1.2y

SBC / FCF

21.7%

Owner earnings

$10.0B

OCF − capex − SBC

OE yield

5.9%

Share count 5y

−2.3%

per year; negative = buybacks

Capital intensity

10.6%

net PP&E ÷ revenue

Sales efficiency

$0.05

new PP&E per $1 new revenue, 5y

Growth engine (5y): reinvested 27.8% of operating cash flow at an incremental return of 51.6% — an organically fundable growth rate of about 14.3% per year (growth ≈ reinvestment rate × incremental ROIC).

Checklist

21 of 26 checks pass · 81%. Checks with structurally missing inputs are excluded.

Growth & Consistency

5/7

  • Revenue growth

    13.5% · 5y CAGR ≥ 5%

    pass
  • EPS growth

    2.1% · 5y CAGR ≥ 5%

    fail
  • FCF growth

    23.8% · 5y CAGR ≥ 5%

    pass
  • Revenue rises consistently

    6 of 9 · up in ≥ 7 of last 10 years

    fail
  • FCF consistently positive

    10 of 10 · positive in ≥ 8 of last 10 years

    pass
  • Profitable every year

    9 of 10 · net income > 0 in ≥ 8 of last 10

    pass
  • Cash flow keeps up with sales

    19.2% vs 13.5% · OCF CAGR ≥ 0.9× revenue CAGR

    pass

Profitability

6/6

  • Net margin

    12.5% · ≥ 8%

    pass
  • Operating margin

    27.9% · ≥ 10%

    pass
  • Gross margin stable or rising

    · no drop > 2 pts over 3y

    na
  • Return on equity

    26.1% · ≥ 12%

    pass
  • Cash ROIC

    38.9% · ≥ 12%

    pass
  • FCF margin

    28.9% · ≥ 5%

    pass
  • Earnings back their cash

    OCF $14.0B vs NI $5.5B · OCF ≥ net income (latest FY)

    pass

Balance Sheet

4/5

  • Debt payable from cash flow

    1.2y · LT debt ≤ 3× FCF

    pass
  • Cash cushion

    37% · cash ≥ 50% of LT debt

    fail
  • Leverage

    0.70 · LT debt ≤ 1.5× equity

    pass
  • Equity positive and compounding

    $21.2B · equity > 0 and grew over ~5y

    pass
  • Interest burden

    5% · interest ≤ 15% of operating income

    pass

Capital Allocation

3/4

  • Share count flat or shrinking

    -2.3% · ≤ +0.5%/yr over ~5y

    pass
  • Stock comp restrained

    22% · SBC ≤ 15% of FCF

    fail
  • Distributions funded by FCF

    69% · dividends + buybacks ≤ 100% of FCF

    pass
  • Repurchases are a habit

    10 of 10 · buybacks in ≥ 5 of last 10 years

    pass

Valuation Discipline

3/4

  • FCF yield

    7.6% · ≥ 3%

    pass
  • Earnings multiple

    30.5 · P/E ≤ 25

    fail
  • Price asks less than history delivered

    2.0% vs 11.0% · implied FCF growth ≤ historical FCF CAGR

    pass
  • Shareholder yield

    5.2% · dividends + buybacks ≥ 2% of market cap

    pass

Financial data

As filed in 10-Ks; per-share figures split-adjusted. $ in millions.

FYRevenueGross profitOp incomeNet incomeEPSOCFCapExFCFDividendsBuybacksSBCCashLT debtEquityShares
202544,28412,3555,5415.0114,0121,19212,8208,7912,7835,52014,81121,2061,105
202438,96210,07110,1428.9712,2021,04111,1614,1212,6487,84913,27026,2741,130
202335,8207,7887,2326.4211,2991,4509,8492,9732,4848,45014,48421,5811,126
202244,20015,86012,93611.379,0962,2626,8343,1292,0312,77313,53718,0131,137
202133,5669,7899,0437.8710,5361,8888,6483,3661,6637,11613,7019,9501,149
202023,5316,2555,1984.525,8141,4074,4072,4501,2126,70715,2266,0771,149
201924,2737,6674,3863.597,2868876,3991,7931,03711,83913,4374,9091,220
201822,611621-4,964-3.393,9087843,12422,58088311,77715,3658071,463
201722,2582,5812,4451.645,0016904,3111,34291435,02919,39830,7251,490
201623,5546,4955,7053.817,6325397,0933,9239435,94610,00831,7781,498
201525,2815,7765,2713.225,5069944,51211,2461,0267,5609,96931,4211,639
201426,4877,5507,9674.658,8871,1857,7022,6294,5491,0597,907039,1691,714
201324,8667,2306,8533.918,7781,0487,7302,0554,6101,1056,14236,0881,754
201219,1215,6826,1093.515,9981,2844,7141,5831,3131,0353,80733,5231,741
201114,9575,0264,2602.524,9005934,3071,3461428245,46226,9511,691
201010,9823,7273,2471.964,0764263,6501,1773,0166123,54720,8581,658
200910,3872,5421,5920.957,1727616,4111,0932855842,71720,3161,673
200811,1423,7303,1601.903,5581,3972,1619821,6705411,84017,9441,660
20078,8712,8833,3031.953,8118182,9938621,4824882,41115,8351,693

Some concepts are structurally absent for certain industries (banks report no gross profit or capex). Missing ≠ zero.