Is Qualcomm Incorporated (QCOM) overvalued?
On Equity Rank's model estimate, QCOM trades close to its fair value (8% above it). Qualcomm Incorporated (QCOM) last closed at $165.41; the multi-method model fair value is $152.55.
| Price | Model fair value | Price vs model |
|---|---|---|
| $165.41 | $152.55 | 8% above |
What the answer rests on
- 2 of 8 valuation methods put QCOM's value above its price and 6 put it below, so the methods mostly agree.
- To justify today's price, QCOM's free cash flow would need to grow about 11.0% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew -4.2% a year.
- Over the past year the price sat below the model fair value on 98% of trading days. The gap ranged from 28% below to 3% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind QCOM's fair value · What prices assume · Other companies