Qualcomm Inc. (NASDAQ:QCOM)

Price to Earnings (P/E) Ratio

The P/E ratio exhibited volatility over the observed periods. It started at 22.03 in 2019, rose to a peak of 28.06 in 2020, then saw a significant decline to 9.75 in 2022. Subsequently, it increased again to 17.07 in 2023 and further to 18.95 in 2024. This pattern indicates fluctuations in investor expectations relative to earnings, with a notable dip around 2022, suggesting a period of lower market valuation or increased earnings during that year.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio closely mirrors the P/E ratio trend. It increased sharply from 12.6 in 2019 to a high of 23.32 in 2020, declined markedly to 7.95 in 2022, and then rose again to 15.85 in 2023 and 19.08 in 2024. The decline in 2022 reflects a similar pattern to the P/E ratio, possibly attributable to improved operating profit or subdued market pricing during that period. Recovery in subsequent years indicates renewed optimism or growth in operating profit valuations.

Price to Sales (P/S) Ratio

The P/S ratio experienced an initial increase from 3.98 in 2019 to 6.2 in 2020, followed by a decreasing trend to 2.85 in 2022. After this low, the ratio rose moderately to 3.45 in 2023 and further to 4.93 in 2024. This metric's fluctuation suggests variations in sales valuation by the market, with a particularly low point in 2022 indicating either a decrease in sales valuation or higher sales relative to stock price during that year.

Price to Book Value (P/BV) Ratio

The P/BV ratio shows a consistent downward trend from 19.69 in 2019 to 7.31 in 2024, with a marked drop between 2020 (24) and 2022 (7). It decreased steadily from 24 in 2020 to 5.72 in 2023 before a slight recovery to 7.31 in 2024. This downward movement indicates a contraction in market valuation relative to the book value of the company, potentially reflecting changes in asset base, market sentiment, or both over the years.

Share Price

The share price exhibited an overall upward trajectory from 2019 to 2024, beginning at 84.63 USD in 2019 and reaching 172.99 USD by 2024. There was a notable increase between 2019 and 2021, peaking at 138.48 USD, followed by a decline in 2022 to 112.5 USD and a slight further dip in 2023 to 110.89 USD. However, a strong rebound occurred in 2024, with the price rising significantly to 172.99 USD.

Earnings Per Share (EPS)

The EPS demonstrated a generally positive upward trend over the period, rising from 3.84 USD in 2019 to a peak of 11.54 USD in 2022. After this peak, EPS declined to 6.5 USD in 2023 but recovered to 9.13 USD in 2024. The data suggests strong earnings growth particularly from 2020 to 2022, followed by some volatility in the subsequent years.

Price-to-Earnings (P/E) Ratio

The P/E ratio fluctuated throughout the period, starting at 22.03 in 2019 and increasing to 28.06 in 2020, indicating a higher market valuation relative to earnings. From 2020 to 2022, the ratio decreased sharply to 9.75, reflecting a period where earnings growth outpaced share price increases or a market revaluation. This ratio increased again to 17.07 in 2023 and modestly to 18.95 in 2024, suggesting a partial market re-rating in line with the recovering share price and earnings.

Share Price Trend

The share price showed a general upward trajectory over the period, increasing from $84.63 in late 2019 to $172.99 in late 2024. Notable growth phases include a sharp rise between 2019 and 2021, peaking at $138.48, followed by a decline in 2022 and 2023 to around $110. Subsequently, a significant recovery occurred in 2024.

Operating Profit Per Share

Operating profit per share exhibited fluctuations with an initial decline from $6.71 in 2019 to $5.53 in 2020, then a marked increase to $8.74 in 2021 and a peak of $14.15 in 2022. After this peak, profit dropped to $7.00 in 2023, before rebounding to $9.06 in 2024. This pattern suggests volatility in operational efficiency or profitability factors over these years.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio demonstrated considerable variability, reflecting shifts in market valuation relative to operating profit. It spiked to a high of 23.32 in 2020, suggesting a premium valuation despite lower operating profit that year. The ratio then decreased to a low of 7.95 in 2022, coinciding with peak operating profit, indicating a more attractive valuation. Subsequently, the ratio increased again in 2023 and 2024 to 15.85 and 19.08 respectively, implying rising share prices not fully matched by operating profit growth.

Overall Insights

The data reveals cyclical patterns in profitability and valuation. The peak operating profit in 2022 was associated with a lower price multiple, suggesting market recognition of strong earnings. The subsequent recovery in share price by 2024 outpaced operating profit gains, leading to higher valuation multiples. Investors appear to price future growth expectations into the share price, especially in the latest period. The volatility in operating profit per share indicates potential influences from market conditions, cost structure, or operational changes over time.

The financial data reveals several notable trends over the six-year period ending in 2024. The share price exhibited an overall upward movement with some fluctuations, increasing from $84.63 in 2019 to $172.99 in 2024. However, there were intermittent declines observed in 2022 and 2023, where the price dropped from a peak of $138.48 in 2021 to $112.50 and $110.89, respectively, before rebounding sharply in 2024.

Sales per share showed variability but a generally positive trend over the period. Starting at $21.26 in 2019, sales per share experienced a slight decline in 2020, but then increased significantly to $39.43 by 2022. After this peak, there was a decrease to $32.18 in 2023, followed by a modest recovery to $35.07 in 2024. This pattern suggests some volatility in revenue generation or changes in the number of shares outstanding.

The price-to-sales (P/S) ratio displayed considerable fluctuations, indicating varying market perceptions relative to sales performance. The ratio surged from 3.98 in 2019 to a high of 6.20 in 2020, suggesting that the market valued the stock more aggressively relative to its sales at that time. Following this peak, the P/S ratio declined steadily to 2.85 by 2022, reflecting either a correction in the market’s valuation or improving sales. In 2023, the ratio rose modestly to 3.45 and increased further to 4.93 in 2024, demonstrating renewed investor confidence and potentially a more optimistic outlook on future sales growth or profitability.

Share Price

Overall increasing trend with peak in 2024 after dips in 2022 and 2023.

Sales per Share

Growth until 2022, followed by a reduction and then partial recovery by 2024.

Price-to-Sales Ratio

Volatile movements with an initial increase to 2020, subsequent decline to 2022, and renewed rises through 2024.

The analysis of the annual financial data reveals several notable trends across the given periods.

Share Price

The share price exhibited a general upward trajectory over the span of six years, increasing from $84.63 in 2019 to $172.99 in 2024. The price peaked around 2021 at $138.48 before experiencing a decline during 2022 and 2023, dropping to $110.89. Subsequently, a substantial recovery occurred in 2024, leading to the highest recorded price in the data set.

Book Value Per Share (BVPS)

Book value per share displayed consistent growth throughout the period, rising steadily from $4.30 in 2019 to $23.65 by 2024. The increase in BVPS was particularly pronounced between 2020 and 2022, nearly doubling from $5.37 to $16.07, and continuing to rise albeit at a slower pace thereafter.

Price to Book Value (P/BV) Ratio

The P/BV ratio initially escalated from 19.69 in 2019 to a peak of 24 in 2020, suggesting the market valuation increased at a faster rate than book value. However, from 2021 onward, the ratio declined sharply to 7.31 in 2024, with the most significant drop occurring between 2020 and 2022. This indicates that while the share price experienced fluctuations, the book value's rapid growth outpaced the market price adjustment, leading to a compression in the valuation multiple.

In summary, the data indicates that while share price fluctuations occurred, the fundamental book value per share consistently strengthened. The declining P/BV ratio from 2020 suggests market valuation became more aligned with the underlying book value, potentially reflecting changing investor valuation perspectives or underlying company performance improvements. The strong recovery in share price in 2024 combined with the continuing rise in book value may signal renewed investor confidence or improved financial outlook.