Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

QUALCOMM Incorporated (QCOM)

Company Dividend Discount ModelIndustry: SemiconductorsSector: Technology

Valuation Snapshot

Stable Growth$86.45 - $174.86$120.64
Multi-Stage$85.97 - $93.86$89.84
Blended Fair Value$105.24
Current Price$165.30
Upside-36.33%
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 Rate8.56%8.56%8.56%
Growth Rate3.77%4.77%5.77%
Fair Value$86.45$120.64$174.86
Upside / Downside-47.70%-27.02%5.78%

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 Rate8.56%8.56%8.56%
Growth Rate3.77%4.77%5.77%
Year 1 PV (M)3,862.973,900.203,937.43
Year 2 PV (M)3,908.413,984.114,060.53
Year 3 PV (M)3,942.314,057.394,174.69
Year 4 PV (M)3,965.614,120.704,280.29
Year 5 PV (M)3,979.164,174.634,377.70
PV of Terminal Value (M)75,788.4179,511.3783,379.23
Equity Value (M)95,446.8799,748.40104,209.88
Shares Outstanding (M)1,110.251,110.251,110.25
Fair Value$85.97$89.84$93.86
Upside / Downside-47.99%-45.65%-43.22%

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