QUALCOMM Incorporated (QCOM) DCF Valuation
Transparent DCF models put QUALCOMM Incorporated (QCOM)'s fair value in a range of $138.98 – $150.63 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $192.31 sits above that range — by these conservative assumptions it looks richly valued; the reverse-DCF below is the better lens for a high-growth name.
Reverse DCF: at today's $192.31, the market is pricing in roughly +8.2%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of +9.4%. The price assumes a slowdown from its track record — a potential value signal if growth holds.
Current Price
$192.31
Fair-Value Range
$138.98 – $150.63
Market-Implied Growth
+8.2%/yr
vs +9.4% 5Y actual
QCOM DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $10.2B · 1.05B shares · net debt $7.8B
Estimated Fair Value
$150.63
-21.7% vs $192.31
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $192.31; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $189 | $199 | $211 | $225 | $243 |
| 9.0% | $161 | $168 | $176 | $185 | $196 |
| 10.0% | $140 | $145 | $151 | $157 | $164 |
| 11.0% | $124 | $127 | $131 | $136 | $141 |
| 12.0% | $110 | $113 | $116 | $119 | $123 |
About QUALCOMM Incorporated
QUALCOMM Incorporated is a company dedicated to developing and bringing to market fundamental technologies crucial for the global wireless communication industry. Its operations are structured into three primary segments: Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL), and Qualcomm Strategic Initiatives (QSI). The QCT division specializes in creating and supplying integrated circuits and system software, leveraging 3G, 4G, 5G, and other advanced wireless technologies. These components are essential for a range of products, including those used for wireless voice and data communication, networking, application processing, multimedia, and global positioning. The QTL segment generates revenue by licensing its extensive intellectual property portfolio, which encompasses various patent rights vital for the manufacture and sale of wireless devices, particularly those adhering to standards like CDMA2000, WCDMA, LTE, and OFDMA-based 5G. Through its QSI segment, Qualcomm invests in early-stage companies across diverse sectors such as 5G, artificial intelligence, automotive, consumer electronics, enterprise solutions, cloud computing, and the Internet of Things, aiming to support the introduction of new products and services for both existing and emerging communication applications. Furthermore, the company provides development services and related products to United States government agencies and their contractors. Founded in 1985, QUALCOMM Incorporated maintains its headquarters in San Diego, California.
- Sector
- Technology
- Industry
- Semiconductors
- CEO
- Cristiano Renno Amon