DCF Tool

QCOM

Qualcomm, Inc. – Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Qualcomm is the world's leading wireless technology innovator and the driving force behind the development, launch, and expansion of 5G. When people connected the phone to the internet, the mobile revolution was born. Today, foundational technologies enable the mobile ecosystem and are found in every 3G, 4G and 5G smartphone. The company brings the benefits of mobile to new industries, including automotive, the internet of things, and computing, and are leading the way to a world where everything and everyone can communicate and interact seamlessly. Qualcomm Incorporated includes licensing business, QTL, and the vast majority of patent portfolio. Qualcomm Technologies, Inc., a subsidiary of Qualcomm Incorporated, operates, along with its subsidiaries, substantially all of our engineering, research and development functions, and substantially all of our products and services businesses, including our QCT semiconductor business.
Analysis Results
Intrinsic Value $125.46
Latest Price $112.98
Relative Value 10% undervalued
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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 7.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 10.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 7.8%, 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)
2022 9.93 9.03
2023 10.7 8.85
2024 11.5 8.68
2025 12.4 8.52
2026 13.4 8.35
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 172 billion. This corresponds to a present value of 97.5 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 43.4 billion. Adding in the terminal value gives a total present value of 141 billion.

There are presently 1.12 billion outstanding shares, so the intrinsic value per share is 125.46.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 40,150,000,000
Current Cash 24,828,000,000
Current Liabilities 23,902,000,000
Current Debt 4,088,000,000
Non-Cash Working Capital (NCWC) -4,492,000,000
Change in NCWC -3,625,000,000
EBIT 19,604,000,000
Tax Provision 2,462,000,000
Depreciation and Amortization 3,164,000,000
Capital Expenditure -3,776,000,000
Unlevered Free Cash Flow 13,018,107,261
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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