Stock Analysis on Net

Qualcomm Inc. (NASDAQ:QCOM)

Enterprise Value to FCFF (EV/FCFF) 

Microsoft Excel

Free Cash Flow to The Firm (FCFF)

Qualcomm Inc., FCFF calculation

US$ in millions

Microsoft Excel
12 months ended: Sep 25, 2022 Sep 26, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Sep 24, 2017
Net income (loss) attributable to Qualcomm 12,936 9,043 5,198 4,386 (4,864) 2,466
Net loss attributable to noncontrolling interests (1)
Net noncash charges 4,130 1,954 2,223 4,124 7,299 1,804
Changes in assets and liabilities (7,800) (461) (1,607) (1,224) 1,460 424
Net cash provided by operating activities 9,266 10,536 5,814 7,286 3,895 4,693
Cash interest paid related to commercial paper program and long-term debt, net of cash received from the related interest rate swaps, net of tax1 427 420 461 330 480 255
Capital expenditures (2,262) (1,888) (1,407) (887) (784) (690)
Free cash flow to the firm (FCFF) 7,431 9,068 4,868 6,729 3,591 4,258

Based on: 10-K (reporting date: 2022-09-25), 10-K (reporting date: 2021-09-26), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-24).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Qualcomm Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Qualcomm Inc. FCFF increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.

Interest Paid, Net of Tax

Qualcomm Inc., interest paid, net of tax calculation

US$ in millions

Microsoft Excel
12 months ended: Sep 25, 2022 Sep 26, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Sep 24, 2017
Effective Income Tax Rate (EITR)
EITR1 13.00% 12.00% 9.00% 41.37% 27.49% 18.38%
Interest Paid, Net of Tax
Cash interest paid related to commercial paper program and long-term debt, net of cash received from the related interest rate swaps, before tax 491 477 507 563 662 313
Less: Cash interest paid related to commercial paper program and long-term debt, net of cash received from the related interest rate swaps, tax2 64 57 46 233 182 58
Cash interest paid related to commercial paper program and long-term debt, net of cash received from the related interest rate swaps, net of tax 427 420 461 330 480 255

Based on: 10-K (reporting date: 2022-09-25), 10-K (reporting date: 2021-09-26), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-24).

1 See details »

2 2022 Calculation
Cash interest paid related to commercial paper program and long-term debt, net of cash received from the related interest rate swaps, tax = Cash interest paid related to commercial paper program and long-term debt, net of cash received from the related interest rate swaps × EITR
= 491 × 13.00% = 64


Enterprise Value to FCFF Ratio, Current

Qualcomm Inc., current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 151,352
Free cash flow to the firm (FCFF) 7,431
Valuation Ratio
EV/FCFF 20.37
Benchmarks
EV/FCFF, Competitors1
Advanced Micro Devices Inc. 48.57
Analog Devices Inc. 26.68
Applied Materials Inc. 22.28
Broadcom Inc. 16.74
First Solar Inc.
Intel Corp.
KLA Corp. 18.79
Lam Research Corp. 27.04
Micron Technology Inc. 21.10
NVIDIA Corp. 170.57
ON Semiconductor Corp. 21.16
Texas Instruments Inc. 27.60
EV/FCFF, Sector
Semiconductors & Semiconductor Equipment 38.35
EV/FCFF, Industry
Information Technology 28.35

Based on: 10-K (reporting date: 2022-09-25).

1 Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.


Enterprise Value to FCFF Ratio, Historical

Qualcomm Inc., historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Sep 25, 2022 Sep 26, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Sep 24, 2017
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 135,213 158,429 150,377 100,307 80,903 63,394
Free cash flow to the firm (FCFF)2 7,431 9,068 4,868 6,729 3,591 4,258
Valuation Ratio
EV/FCFF3 18.20 17.47 30.89 14.91 22.53 14.89
Benchmarks
EV/FCFF, Competitors4
Advanced Micro Devices Inc. 38.82 43.41 126.98 169.58
Analog Devices Inc. 23.12 39.16 27.12 21.68 16.04 36.93
Applied Materials Inc. 19.06 26.22 22.52 18.91 9.96 15.58
Broadcom Inc. 14.74 19.47 16.54 15.04 13.02 20.10
First Solar Inc.
Intel Corp. 16.94 11.08 17.39 15.50
KLA Corp. 19.05 26.29 18.70 20.92 14.15 12.19
Lam Research Corp. 24.03 24.02 25.91 9.83 10.36 11.51
Micron Technology Inc. 18.28 33.81 292.39 14.33 5.37 17.38
NVIDIA Corp. 78.07 69.47 41.65 27.92 47.71
ON Semiconductor Corp. 20.67 19.86 33.03 46.88 12.66
Texas Instruments Inc. 27.05 24.23 27.67 20.75 16.49
EV/FCFF, Sector
Semiconductors & Semiconductor Equipment 35.05 26.37 22.31 18.50 15.89
EV/FCFF, Industry
Information Technology 26.63 28.03 26.16 21.64 18.26

Based on: 10-K (reporting date: 2022-09-25), 10-K (reporting date: 2021-09-26), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-24).

1 See details »

2 See details »

3 2022 Calculation
EV/FCFF = EV ÷ FCFF
= 135,213 ÷ 7,431 = 18.20

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Qualcomm Inc. EV/FCFF ratio decreased from 2020 to 2021 but then slightly increased from 2021 to 2022.