Definitive Analysis
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QUALCOMM Incorporated (QCOM)

Company Dividend Discount ModelIndustry: SemiconductorsSector: Technology

Valuation Snapshot

Stable Growth$77.70 - $146.53$105.61
Multi-Stage$78.14 - $85.25$81.63
Blended Fair Value$93.62
Current Price$165.30
Upside-43.36%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS5.71%2.82%3.433.323.122.892.712.602.673.122.932.69
YoY Growth--3.20%6.50%7.78%6.78%4.37%-2.90%-14.37%6.58%8.76%3.82%
Dividend Yield--2.07%2.15%2.17%2.61%1.45%1.76%3.02%5.49%4.53%4.03%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)5,541.00
(-) Cash Dividends Paid (M)3,805.00
(=) Cash Retained (M)1,736.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,108.20692.63415.58
Cash Retained (M)1,736.001,736.001,736.00
(-) Cash Required (M)-1,108.20-692.63-415.58
(=) Excess Retained (M)627.801,043.381,320.43
(/) Shares Outstanding (M)1,110.251,110.251,110.25
(=) Excess Retained per Share0.570.941.19
LTM Dividend per Share3.433.433.43
(+) Excess Retained per Share0.570.941.19
(=) Adjusted Dividend3.994.374.62
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate3.77%4.77%5.77%
Fair Value$77.70$105.61$146.53
Upside / Downside-53.00%-36.11%-11.36%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)5,541.005,805.076,081.736,371.576,675.236,993.367,203.16
Payout Ratio68.67%72.94%77.20%81.47%85.73%90.00%92.50%
Projected Dividends (M)3,805.004,233.984,695.215,190.795,722.946,294.026,662.92

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate3.77%4.77%5.77%
Year 1 PV (M)3,843.863,880.903,917.94
Year 2 PV (M)3,869.823,944.774,020.44
Year 3 PV (M)3,884.073,997.454,113.02
Year 4 PV (M)3,887.684,039.734,196.19
Year 5 PV (M)3,881.664,072.344,270.44
PV of Terminal Value (M)67,385.5870,695.7774,134.79
Equity Value (M)86,752.6890,630.9694,652.82
Shares Outstanding (M)1,110.251,110.251,110.25
Fair Value$78.14$81.63$85.25
Upside / Downside-52.73%-50.62%-48.42%

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