DCF Tool

QCOM

Qualcomm is an American multinational corporation headquartered in San Diego, California, and incorporated in Delaware. It creates semiconductors, software, and services related to wireless technology. It owns patents critical to the 5G, 4G, CDMA2000, TD-SCDMA and WCDMA mobile communications standards.
Analysis Results
Intrinsic Value $80.60
Latest Price $171.29
Relative Value 113% overvalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 3.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 10.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 3.3%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2024 7.92 7.16
2025 8.18 6.69
2026 8.45 6.25
2027 8.72 5.83
2028 9.01 5.45
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 107 billion. This corresponds to a present value of 58.6 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 31.4 billion. Adding in the terminal value gives a total present value of 90.0 billion.

There are presently 1.12 billion outstanding shares, so the intrinsic value per share is 80.6.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 22,464,000,000
Current Cash 11,324,000,000
Current Liabilities 9,628,000,000
Current Debt 914,000,000
Non-Cash Working Capital (NCWC) 2,426,000,000
Change in NCWC -1,995,000,000
EBIT 8,650,000,000
Tax Provision 104,000,000
Depreciation and Amortization 1,809,000,000
Capital Expenditure -1,450,000,000
Unlevered Free Cash Flow 6,893,134,757
Current Assets 20,724,000,000
Current Cash 6,382,000,000
Current Liabilities 11,866,000,000
Current Debt 1,945,000,000
Non-Cash Working Capital (NCWC) 4,421,000,000
Change in NCWC 6,667,000,000
EBIT 14,794,000,000
Tax Provision 2,012,000,000
Depreciation and Amortization 1,762,000,000
Capital Expenditure -2,262,000,000
Unlevered Free Cash Flow 18,976,366,848
Current Assets 20,075,000,000
Current Cash 12,414,000,000
Current Liabilities 11,951,000,000
Current Debt 2,044,000,000
Non-Cash Working Capital (NCWC) -2,246,000,000
Change in NCWC -1,379,000,000
EBIT 9,802,000,000
Tax Provision 1,231,000,000
Depreciation and Amortization 1,582,000,000
Capital Expenditure -1,888,000,000
Unlevered Free Cash Flow 6,942,553,630
Current Assets 18,519,000,000
Current Cash 11,214,000,000
Current Liabilities 8,672,000,000
Current Debt 500,000,000
Non-Cash Working Capital (NCWC) -867,000,000
Change in NCWC 1,067,000,000
EBIT 6,206,000,000
Tax Provision 521,000,000
Depreciation and Amortization 1,393,000,000
Capital Expenditure -1,407,000,000
Unlevered Free Cash Flow 6,693,634,376
Current Assets 16,765,000,000
Current Cash 12,260,000,000
Current Liabilities 8,935,000,000
Current Debt 2,496,000,000
Non-Cash Working Capital (NCWC) -1,934,000,000
Change in NCWC 3,001,000,000
EBIT 7,988,000,000
Tax Provision 3,095,000,000
Depreciation and Amortization 1,401,000,000
Capital Expenditure -887,000,000
Unlevered Free Cash Flow 8,198,246,624
Current Assets 17,384,000,000
Current Cash 12,088,000,000
Current Liabilities 11,236,000,000
Current Debt 1,005,000,000
Non-Cash Working Capital (NCWC) -4,935,000,000
Change in NCWC -2,808,000,000
EBIT 3,732,000,000
Tax Provision 5,377,000,000
Depreciation and Amortization 1,561,000,000
Capital Expenditure -784,000,000
Unlevered Free Cash Flow -3,676,000,000
Current Assets 43,593,000,000
Current Cash 37,308,000,000
Current Liabilities 10,907,000,000
Current Debt 2,495,000,000
Non-Cash Working Capital (NCWC) -2,127,000,000
Change in NCWC -898,000,000
EBIT 4,282,000,000
Tax Provision 555,000,000
Depreciation and Amortization 1,461,000,000
Capital Expenditure -690,000,000
Unlevered Free Cash Flow 3,368,076,158
Current Assets 22,981,000,000
Current Cash 18,648,000,000
Current Liabilities 7,311,000,000
Current Debt 1,749,000,000
Non-Cash Working Capital (NCWC) -1,229,000,000
Change in NCWC -907,000,000
EBIT 6,185,000,000
Tax Provision 1,131,000,000
Depreciation and Amortization 1,428,000,000
Capital Expenditure -539,000,000
Unlevered Free Cash Flow 5,143,257,134
Current Assets 22,099,000,000
Current Cash 17,321,000,000
Current Liabilities 6,100,000,000
Current Debt 1,000,000,000
Non-Cash Working Capital (NCWC) -322,000,000
Change in NCWC 843,000,000
EBIT 7,069,000,000
Tax Provision 1,219,000,000
Depreciation and Amortization 1,214,000,000
Capital Expenditure -994,000,000
Unlevered Free Cash Flow 6,803,633,883
Current Assets 22,413,000,000
Current Cash 17,565,000,000
Current Liabilities 6,013,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,165,000,000
Change in NCWC -541,000,000
EBIT 8,024,000,000
Tax Provision 1,244,000,000
Depreciation and Amortization 1,150,000,000
Capital Expenditure -1,185,000,000
Unlevered Free Cash Flow 6,310,855,320
Current Assets 19,555,000,000
Current Cash 14,966,000,000
Current Liabilities 5,213,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -624,000,000
Change in NCWC 1,407,000,000
EBIT 7,555,000,000
Tax Provision 1,349,000,000
Depreciation and Amortization 1,017,000,000
Capital Expenditure -1,048,000,000
Unlevered Free Cash Flow 7,687,200,268
Current Assets 15,645,000,000
Current Cash 12,374,000,000
Current Liabilities 5,302,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -2,031,000,000
Change in NCWC -377,000,000
EBIT 5,777,000,000
Tax Provision 1,279,000,000
Depreciation and Amortization 897,000,000
Capital Expenditure -1,284,000,000
Unlevered Free Cash Flow 3,887,004,419

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