QUALCOMM Incorporated (QCOM) Intrinsic Value & DCF Valuation
Semiconductors · NASDAQ
Current Price
$184.17
Intrinsic Value
$134.51
-36.9% margin of safety
What Is QUALCOMM Incorporated's Intrinsic Value?
As of 2026-10-27, the base-case DCF model estimates the intrinsic value of QUALCOMM Incorporated (QCOM) at $134.51 per share, compared with a market price of $184.17, a margin of safety of -36.9%. The base case assumes 8.9% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $117.9 to $154.11. Intrinsic value is an estimate built on assumptions, not a fact. A higher discount rate or slower growth pushes the estimate down, while stronger cash flow growth lifts it.
How the DCF works · Recalculate with your own assumptions · What is intrinsic value?
Is QUALCOMM Incorporated (QCOM) Undervalued?
At the current price of $184.17, QCOM trades above the base-case intrinsic value estimate by a meaningful margin. By this model the stock looks expensive, though faster growth than assumed would change the picture.
COMPETITIVE MOAT
↑Dominant Mobile Chipset Leadership
Qualcomm's Snapdragon processors are the industry standard for high-end smartphones, creating significant switching costs for device manufacturers.
↑Extensive Patent Portfolio
A vast portfolio of wireless communication patents provides a strong defensive moat and licensing revenue stream, difficult for competitors to replicate.
↑Ecosystem Integration & Partnerships
Deep integration with Android and strong relationships with major smartphone OEMs create an entrenched ecosystem that is hard to disrupt.
INVESTMENT RISKS
↓Geopolitical & Supply Chain Vulnerabilities
Reliance on global supply chains and geopolitical tensions can disrupt manufacturing and access to key components.
↓Regulatory Scrutiny & Antitrust
Qualcomm has faced and may continue to face regulatory investigations and antitrust actions regarding its business practices.
↓Pace of Technological Evolution
The rapid advancement of wireless technology and AI requires continuous, substantial R&D investment to maintain leadership.
Base case
QCOM base case valuation
Intrinsic Value
$134.51
Margin of safety
-36.9%
Expected annual return
-6.1%
Base case assumptions: 8.9% annual growth, 10.0% discount rate, 18.76x exit multiple, 5 year projection. Data as of 2026-10-27.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the QCOM valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for QUALCOMM Incorporated respond.
Open DCF Calculator for QCOMCompany Overview
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.
Financial Metrics — QCOM Stock Valuation Data
Revenue/Share (TTM)
$41.69
FCF/Share (TTM)
$9.85
ROIC (TTM)
17.4%
ROE (TTM)
37.3%
P/FCF
18.8x
EV/EBITDA
15.3x
FCF Yield
5.33%
Debt/Equity
0.55x
Based on trailing twelve-month data, QCOM shows a free cash flow per share of $9.85 and a ROIC of 17.4%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 18.8x and FCF yield of 5.33% are important context metrics when evaluating QCOM's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of QCOM?
QUALCOMM Incorporated currently generates $9.85 in free cash flow per share. At the current price of $184.17, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is QCOM undervalued?
QCOM trades at a P/FCF ratio of 18.8x with a free cash flow yield of 5.33%. This P/FCF is in a moderate range. However, whether QCOM is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value QCOM stock using DCF?
To perform a DCF valuation on QUALCOMM Incorporated: (1) Start with the trailing free cash flow per share ($9.85) as the base, (2) project future FCF growth over 5-10 years based on Semiconductors industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting QCOM's risk profile — with a debt-to-equity of 0.55x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to QCOM?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For QUALCOMM Incorporated, this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Semiconductors trends, then discounting those amounts to today's dollars. QCOM's ROIC of 17.4% reflects how efficiently the company converts invested capital into profit.
How does WACC affect QCOM stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For QCOM, with a debt-to-equity ratio of 0.55x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 15.3x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See QCOM PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Technology valuationsDCF and P/E value QCOM with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-10-27. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.