Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Qualcomm Inc., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-09-24), 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).
The financial data reveals notable trends in the cash flows over the analyzed periods. Both net cash provided by operating activities and free cash flow to equity (FCFE) experienced fluctuations but demonstrated overall growth towards the most recent year.
- Net Cash Provided by Operating Activities
- This metric showed a decrease from 7,286 million US dollars in 2019 to 5,814 million in 2020, indicating a downturn in operating cash generation during that year. However, it rebounded sharply to 10,536 million in 2021, suggesting improved operational efficiency or increased revenue generation. Despite a slight decrease to 9,266 million in 2022, the figure rose again in the subsequent years, reaching 11,698 million in 2023 and 12,293 million in 2024. Overall, the trend points to strengthening operational cash inflows after the initial dip in 2020.
- Free Cash Flow to Equity (FCFE)
- FCFE showed a similar pattern with a drop from 5,896 million in 2019 to 4,178 million in 2020, reflecting reduced available cash after investments and debt servicing. It then increased considerably in 2021 to 8,652 million, suggesting enhanced cash availability for equity holders. This was followed by a decline to 6,594 million in 2022. The last two years demonstrated a recovery with FCFE values of 10,311 million in 2023 and 10,348 million in 2024, indicating a strong capacity to return cash to shareholders.
In summary, both operating cash flow and free cash flow to equity experienced initial contraction during 2020, likely due to external challenges impacting cash generation and distribution. Nevertheless, both metrics recovered robustly in subsequent years, and the latest data points suggest ongoing financial strength and improvements in cash management, supporting continued operational health and shareholder returns.
Price to FCFE Ratio, Current
Qualcomm Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 1,098,000,000 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 10,348) |
| FCFE per share | 9.42 |
| Current share price (P) | 158.54 |
| Valuation Ratio | |
| P/FCFE | 16.82 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Advanced Micro Devices Inc. | 140.89 |
| Analog Devices Inc. | 31.69 |
| Applied Materials Inc. | 18.20 |
| Broadcom Inc. | 31.86 |
| Intel Corp. | — |
| KLA Corp. | 31.25 |
| Lam Research Corp. | 31.09 |
| Micron Technology Inc. | — |
| NVIDIA Corp. | 64.58 |
| Texas Instruments Inc. | 48.51 |
| P/FCFE, Sector | |
| Semiconductors & Semiconductor Equipment | 75.76 |
| P/FCFE, Industry | |
| Information Technology | 45.11 |
Based on: 10-K (reporting date: 2024-09-29).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Qualcomm Inc., historical P/FCFE calculation, comparison to benchmarks
| Sep 29, 2024 | Sep 24, 2023 | Sep 25, 2022 | Sep 26, 2021 | Sep 27, 2020 | Sep 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,111,000,000 | 1,113,000,000 | 1,121,000,000 | 1,120,000,000 | 1,131,000,000 | 1,141,844,863 | |
| Selected Financial Data (US$) | |||||||
| Free cash flow to equity (FCFE) (in millions)2 | 10,348) | 10,311) | 6,594) | 8,652) | 4,178) | 5,896) | |
| FCFE per share3 | 9.31 | 9.26 | 5.88 | 7.73 | 3.69 | 5.16 | |
| Share price1, 4 | 172.99 | 110.89 | 112.50 | 138.48 | 128.97 | 84.63 | |
| Valuation Ratio | |||||||
| P/FCFE5 | 18.57 | 11.97 | 19.13 | 17.93 | 34.91 | 16.39 | |
| Benchmarks | |||||||
| P/FCFE, Competitors6 | |||||||
| Advanced Micro Devices Inc. | 109.67 | 241.70 | 33.46 | 44.72 | 133.51 | — | |
| Analog Devices Inc. | 29.30 | 22.28 | 24.14 | 34.67 | 33.98 | 37.52 | |
| Applied Materials Inc. | 17.05 | 17.53 | 19.17 | 27.20 | 23.21 | 19.53 | |
| Broadcom Inc. | 26.03 | 30.06 | 14.62 | 22.35 | 9.16 | 5.64 | |
| Intel Corp. | — | — | — | 14.25 | 8.57 | — | |
| KLA Corp. | 25.11 | 26.78 | 9.01 | 28.05 | 19.15 | 9.84 | |
| Lam Research Corp. | 25.89 | 18.67 | 24.95 | 34.58 | 16.89 | 6.14 | |
| Micron Technology Inc. | — | — | 18.66 | 37.24 | 81.71 | 13.92 | |
| NVIDIA Corp. | 65.45 | 151.07 | 54.83 | 35.22 | 44.24 | — | |
| Texas Instruments Inc. | 42.96 | 37.61 | 23.88 | 21.87 | 24.10 | — | |
| P/FCFE, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 45.81 | 47.55 | 29.02 | 24.87 | 17.64 | — | |
| P/FCFE, Industry | |||||||
| Information Technology | 36.66 | 33.16 | 26.84 | 27.24 | 23.37 | — | |
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-09-24), 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).
1 Data adjusted for splits and stock dividends.
3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 10,348,000,000 ÷ 1,111,000,000 = 9.31
4 Closing price as at the filing date of Qualcomm Inc. Annual Report.
5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 172.99 ÷ 9.31 = 18.57
6 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited an overall upward trajectory from 2019 through 2024, starting at $84.63 in 2019 and reaching $172.99 in 2024. There was a notable increase between 2019 and 2021, peaking at $138.48 in 2021, followed by a decline during 2022 and 2023 to a low of approximately $110.89 before rebounding sharply in 2024.
- FCFE per Share Movement
- Free Cash Flow to Equity (FCFE) per share fluctuated significantly over the analyzed period. Beginning at $5.16 in 2019, FCFE per share dropped to $3.69 in 2020, bounced back to $7.73 in 2021, and then declined again to $5.88 in 2022. Subsequent years saw a strong recovery, with FCFE per share increasing to $9.26 in 2023 and remaining relatively stable at $9.31 in 2024.
- P/FCFE Ratio Analysis
- The Price to Free Cash Flow to Equity (P/FCFE) ratio demonstrated considerable variation over the years. It started at 16.39 in 2019, surged sharply to 34.91 in 2020, suggesting a higher market valuation relative to FCFE. The ratio decreased to 17.93 in 2021 and showed a slight increase to 19.13 in 2022. Subsequently, it dropped to a low of 11.97 in 2023 before rising again to 18.57 in 2024. This pattern indicates periods of fluctuating investor valuation sentiment when compared against free cash flow returns.
- Overall Insights
- The data reflect a cyclical pattern in both shareholder returns and market valuation. The inconsistency in FCFE per share suggests volatility in the company’s cash-generating ability or capital distribution strategies. The P/FCFE ratio changes imply shifting investor confidence or varying growth expectations relative to cash flows. The large rebound in share price in 2024, coupled with steady FCFE, may indicate improved market sentiment or anticipated growth potential.