QUALCOMM Incorporated (QCOM) Stock Analysis — Fair Value, Risk & Moat Rating
NMS · Technology · Semiconductors
Is QUALCOMM Incorporated a safe investment right now?
QUALCOMM Incorporated's Altman Z-Score of 5.75 places it in the safe zone. Our fair value estimate is $194.79 (Strong Buy Zone). Moat rating: 3.4/5 stars.
Could QUALCOMM Incorporated go bankrupt? Altman Z-Score analysis
Z-Score of 5.75 is above 3.0, indicating the company is financially healthy by this metric.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives QCOM's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | 0.3313 | 1.2 | 0.4 |
| B · Retained Earnings / Total Assets | RE / TA | 0.4117 | 1.4 | 0.58 |
| C · EBIT / Total Assets | EBIT / TA | 0.2658 | 3.3 | 0.88 |
| D · Market Cap / Total Liabilities | MCap / TL | 5.0223 | 0.6 | 3.01 |
| E · Revenue / Total Assets | Rev / TA | 0.8832 | 1.0 | 0.88 |
How has QCOM's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 5.48 | Safe |
| 2023 | 5.06 | Safe |
| 2024 | 5.36 | Safe |
| 2025 | 5.75 | Safe |
Source: Calculated from QCOM's latest 10-K filing on SEC EDGAR.
What is QUALCOMM Incorporated actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $8.36 | Proprietary blend of reported actuals (1Q actual) + analyst consensus, weighted by α |
| Last Year EPS | $5.01 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $11.09 | 28 analysts consensus |
| Trailing P/E | 27.4x | Current market pricing |
| Fair P/E (β discount) | 23.3x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Accelerating | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $150.82 (28 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does QUALCOMM Incorporated have a durable competitive advantage?
Moat rating: 3.4/5.
What makes up QCOM's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 4/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 3/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is QCOM's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | 46.2% | — |
| 2023 | 22.0% | Declining |
| 2024 | 27.0% | Rising |
| 2025 | 37.0% | Rising |
Source: ROIC calculated from SEC EDGAR filings.
Is QUALCOMM Incorporated's dividend safe?
Can QUALCOMM Incorporated afford its dividend?
Payout ratio is 71.0%. FCF covers the dividend 2.1x. 25 consecutive years of payments.
QUALCOMM Incorporated's key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $44.3B | $39.0B | $44.2B | Stable |
| Net Income | $5.5B | $10.1B | $12.9B | Declining |
| Free Cash Flow | $12.8B | $11.2B | $6.8B | Rising |
| Gross Margin | 55.4% | 56.2% | 57.8% | Stable |
Recent events that affect our QCOM analysis
QCOM earnings report scheduled
Upcoming report. Consensus EPS estimate: $2.56. Revenue estimate: $10.57B. Our current Fair Value: $194.79 — a significant beat or miss could shift this estimate.
QCOM analyst consensus: 23% bullish (8 of 35 analysts)
0 Strong Buy, 8 Buy, 24 Hold, 2 Sell, 1 Strong Sell. Consensus target: $150.82 (10.8% upside). Compare with our independent Fair Value: $194.79.
QCOM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
QCOM paid $0.8900/share dividend
Dividend Safety Grade: A. Payout ratio: 71.0%.
QCOM beat EPS estimates by 2.9%
Reported EPS: $3.50 vs estimate $3.40. Earnings strength supports our Fair Value of $194.79 (43.2% above current price).
QCOM filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
QCOM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
QCOM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
QCOM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
QCOM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
QCOM paid $0.8900/share dividend
Dividend Safety Grade: A. Payout ratio: 71.0%.
QCOM beat EPS estimates by 4.3%
Reported EPS: $3.00 vs estimate $2.88. Earnings strength supports our Fair Value of $194.79 (43.2% above current price).
QCOM filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
QCOM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
QCOM paid $0.8900/share dividend
Dividend Safety Grade: A. Payout ratio: 71.0%.
QCOM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
QCOM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
QCOM beat EPS estimates by 2.0%
Reported EPS: $2.77 vs estimate $2.71. Earnings strength supports our Fair Value of $194.79 (43.2% above current price).
QCOM filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
QCOM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
QCOM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
QCOM paid $0.8900/share dividend
Dividend Safety Grade: A. Payout ratio: 71.0%.
QCOM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
QCOM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
QCOM beat EPS estimates by 1.2%
Reported EPS: $2.85 vs estimate $2.82. Earnings strength supports our Fair Value of $194.79 (43.2% above current price).
QCOM filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
QCOM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
QCOM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
QCOM paid $0.8500/share dividend
Dividend Safety Grade: A. Payout ratio: 71.0%.
QCOM beat EPS estimates by 14.2%
Reported EPS: $3.41 vs estimate $2.99. Earnings strength supports our Fair Value of $194.79 (43.2% above current price).
QCOM filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
QCOM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
Common questions about QUALCOMM Incorporated
What is QUALCOMM Incorporated stock price today?
QUALCOMM Incorporated (QCOM) stock price is $136.07 as of the latest market close, traded on the NASDAQ exchange.
What does QUALCOMM Incorporated do?
QUALCOMM Incorporated engages in the development and commercialization of foundational technologies for the wireless industry worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software with connectivity and computing technologies for use in mobile devices; automotive systems for connectivity, digital cockpit, and ADAS/AD; and IoT, including consumer electronic devices, industrial devices, and edge networking products.
What is QUALCOMM Incorporated market cap?
QUALCOMM Incorporated has a market capitalization of $145.33B, classifying it as a large-cap stock in the Technology sector.
What sector and industry is QCOM in?
QUALCOMM Incorporated operates in the Technology sector, specifically within the Semiconductors industry. It trades on the NASDAQ under the ticker symbol QCOM.
Is QCOM stock overvalued or undervalued?
Based on our valuation model, QUALCOMM Incorporated trades 30.1% below our fair value estimate — potentially undervalued.
- FairValueLabs Fair Value: $194.79
- Current Price: $136.07
- Valuation Zone: Strong Buy Zone
What is QCOM stock forecast and analyst target price?
Based on 28 Wall Street analysts, the consensus price target for QUALCOMM Incorporated is $150.82, implying upside of 10.8% from the current price.
- Analyst High Target: $200.00
- Analyst Low Target: $100.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is QUALCOMM Incorporated revenue and earnings growing?
Here are the analyst consensus growth estimates for QUALCOMM Incorporated:
- Revenue growth (current year est.): -1.2%
- EPS growth (current year est.): -7.8%
- Revenue growth (next year est.): 0.3%
- EPS growth (next year est.): -0.3%
What are QUALCOMM Incorporated's key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $44.3B | Stable |
| Net Income | $5.5B | Declining |
| Free Cash Flow | $12.8B | Rising |
| Gross Margin | 55.4% | Stable |
What is QCOM's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 27.4x
- Forward P/E (next 12 months est.): 12.3x
- FairValueLabs Fair P/E: 23.3x
How volatile is QCOM stock?
QUALCOMM Incorporated has a beta of 1.28, meaning it is somewhat more volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does QUALCOMM Incorporated have?
QUALCOMM Incorporated's balance sheet shows:
- Total Cash: $11.82B
- Total Debt: $14.82B
- Net Cash Position: $-3.00B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is QUALCOMM Incorporated's free cash flow?
QUALCOMM Incorporated generated $10.42B in trailing twelve-month free cash flow (from $14.39B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does QUALCOMM Incorporated pay a dividend, and is it safe?
Yes, QUALCOMM Incorporated pays a regular dividend. Here are the key metrics:
- Dividend Yield: 2.6%
- Payout Ratio: 71.0%
- Consecutive Years Paid: 25
- 5-Year Dividend Growth: -19.9%
- FairValueLabs Safety Grade: A
Is QUALCOMM Incorporated at risk of going bankrupt?
QUALCOMM Incorporated's Altman Z-Score is 5.75, placing it in the safe zone (above 3.0) — bankruptcy risk is low. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does QUALCOMM Incorporated have a durable competitive advantage?
QUALCOMM Incorporated scores 3.4/5 stars (Narrow moat) in our moat analysis:
- ROIC Stability: 4/5
- Gross Margin Trend: 3/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is QCOM's return on equity (ROE)?
QUALCOMM Incorporated's return on equity is 21.5%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy QCOM stock?
QCOM shares can be purchased through any brokerage account that provides access to the NASDAQ. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol QCOM
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is QCOM a value stock or speculative?
FairValueLabs classifies QUALCOMM Incorporated as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.
Who is the CEO of QUALCOMM Incorporated?
The current CEO of QUALCOMM Incorporated is Mr. Cristiano Renno Amon.
What is QCOM's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $4.97
- Forward EPS (next 12 months est.): $11.02
- Analyst consensus EPS (this year): $11.09
- Analyst consensus EPS (next year): $11.05
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FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
QCOM analysis methodology: How we calculate fair value, Z-Scores, and moat ratings