Qualcomm: Navigating Its Post-Earnings Dip – A Compelling Investment Opportunity

Summary:

  • Autos have become Qualcomm’s primary growth driver.
  • The company is now a free cash flow growth story.
  • The market may potentially undervalue the stock based on price-to-free cash flow.

Qualcomm headquarters in San Diego, California, USA.

JHVEPhoto

When I recommended QUALCOMM (QCOM) on April 1 and May 14 this year, it looked like a well-timed decision for a few months. The stock reached a 52-week high of $230.63 on June 18, up 34.30% over my April

The first quarter of FY 2025 reported Free Cash Flow TTM

(Trailing 12 months in millions)

$12,567
Terminal growth rate 2%
Discount Rate 10%
Years 1 – 10 growth rate 3.7%
Stock Price (August 12, 2024 closing price) $162.89
Terminal FCF value $18.434 billion
Discounted Terminal Value $88.839 billion
FCF margin 33.65%


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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