QUALCOMM Incorporated (QCOM) Fair Value & PE Analysis
Semiconductors · NASDAQ
Current Price
$211.72
PE Ratio (TTM)
22.7x
Intrinsic Value
$242.01
+12.5% margin of safety
What Is QUALCOMM Incorporated's Fair Value?
As of 2026-06-12, applying a 23.0x earnings multiple to QUALCOMM Incorporated's (QCOM) earnings per share of $9.31 yields a fair value estimate of $242.01 per share, versus a market price of $211.72.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $198.56 to $291.7. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How our PE model works · Recalculate in PE mode · QCOM intrinsic value (DCF view)
Is QUALCOMM Incorporated (QCOM) Overvalued?
At $211.72, QCOM trades about 12.5% below its PE-based fair value estimate, a modest discount to its earnings power, though not enough for us to call it cheap outright.
COMPETITIVE MOAT
↑Dominant Mobile Chipset
Qualcomm's Snapdragon processors are the de facto standard in high-end Android smartphones. This entrenched position creates significant switching costs for device manufacturers.
↑Extensive Patent Portfolio
The company holds a vast portfolio of essential patents in mobile communication technologies. This allows for substantial licensing revenue and deters competitors from entering key markets.
↑Automotive and IoT Expansion
Qualcomm is successfully diversifying into the automotive and IoT sectors. Its established technology and relationships provide a strong foundation for growth beyond smartphones.
INVESTMENT RISKS
↓Intensifying Competition
Nvidia's entry into high-end PC chipsets and ongoing competition from MediaTek and others threaten Qualcomm's market share. This could pressure pricing and margins.
↓AI Market Uncertainty
While Qualcomm is pushing into AI, the rapid evolution and intense competition in this space present execution risks. Success is not guaranteed against established players.
↓Geopolitical and Supply Chain Risks
Global semiconductor supply chains are vulnerable to geopolitical tensions and disruptions. This can impact production and profitability for Qualcomm.
Base case
QCOM base case PE valuation
Intrinsic Value
$242.01
Margin of safety
+12.5%
Expected annual return
+2.7%
Base case assumptions: 8.3% annual earnings growth, 23x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the QCOM PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for QUALCOMM Incorporated respond.
Open PE 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 PE Stock Valuation Data
PE Ratio (TTM)
22.7x
PEG Ratio
n/m
Earnings Yield
4.40%
ROE (TTM)
40.2%
Revenue/Share (TTM)
$41.73
Dividend Yield
1.70%
Debt/Equity
0.56x
Frequently Asked Questions
What is the PE ratio of QCOM?
The trailing twelve-month PE ratio of QCOM reflects how much investors pay per dollar of QUALCOMM Incorporated's earnings. This metric is most useful when compared to Semiconductors peers and the company's own historical range.
Is QCOM overvalued based on PE ratio?
QCOM's PE of 22.7x combined with a PEG ratio of -3.71 provides a growth-adjusted perspective. QCOM has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Semiconductors, a DCF analysis may be more appropriate.
How do I value QCOM stock using PE ratio?
To value QUALCOMM Incorporated using PE: (1) Compare the current PE (22.7x) against the Semiconductors median to assess relative pricing, (2) check the PEG ratio (-3.71) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of QCOM?
QCOM's PEG ratio is -3.71, calculated by dividing the PE ratio (22.7x) by the expected earnings growth rate. Because QCOM has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for QCOM stock valuation?
PE ratio gives a quick relative read — how QCOM is priced versus Semiconductors peers. DCF provides an absolute value based on projected free cash flows. For QCOM, with a strong ROE of 40.2%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See QCOM DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Technology valuationsP/E and DCF value QCOM with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.