Qualcomm Inc. (NASDAQ:QCOM)

The valuation ratios exhibit varied trends over the observed period. Generally, the ratios decreased from late 2020 through much of 2022, before experiencing increases into 2023 and fluctuations through the end of the observed period. A notable increase in Price to Book Value is observed in the final period, while other ratios show more moderate changes.

Price to Earnings (P/E)

The Price to Earnings ratio decreased from 27.40 in December 2020 to a low of 9.75 in September 2022. Subsequently, the ratio increased, peaking at 23.14 in June 2024, before declining to 14.76 in March 2025 and then rising again to 29.61 in December 2025. The most recent value, 29.61, represents a substantial increase from the low point but remains above the initial value from December 2020.

Price to Operating Profit (P/OP)

Similar to the P/E ratio, Price to Operating Profit demonstrated a declining trend from 23.79 in December 2020 to 7.95 in September 2022. An upward trajectory followed, reaching 22.65 in June 2024, followed by a decrease to 13.06 in March 2025. The ratio shows a generally lower valuation compared to the P/E ratio throughout the period.

Price to Sales (P/S)

The Price to Sales ratio followed a similar pattern, decreasing from 6.91 in December 2020 to 2.85 in September 2022. It then increased to 5.40 in June 2024, before decreasing to 3.54 in March 2025. The fluctuations are less pronounced than those observed in the P/E and P/OP ratios, remaining relatively stable between 3.85 and 4.93 for several periods.

Price to Book Value (P/BV)

The Price to Book Value ratio experienced a decline from 24.98 in December 2020 to 7.00 in September 2022. It then showed an increasing trend, reaching 8.17 in June 2024, but decreased to 6.89 in March 2025. A significant increase is observed in the final period, rising to 9.08 in December 2025, indicating a substantial shift in market valuation relative to book value.

Overall, the period between December 2020 and September 2022 was characterized by decreasing valuation ratios, potentially reflecting market adjustments or changes in investor sentiment. The subsequent period, from September 2022 through December 2025, shows a recovery and fluctuation in these ratios, with the most recent data suggesting a renewed increase in valuation, particularly as indicated by the Price to Book Value ratio.

The price-to-earnings (P/E) ratio exhibited considerable fluctuation throughout the observed period, spanning from December 2020 to December 2025. Initially, the ratio decreased from 27.40 to a low of 9.75, then generally increased before experiencing another period of volatility. A detailed examination reveals distinct phases in the ratio’s behavior.

Initial Decline (Dec 2020 – Sep 2022)

From December 2020 through September 2022, the P/E ratio demonstrated a pronounced downward trend. Starting at 27.40, it decreased to 9.75. This decline coincided with an increase in earnings per share (EPS) while the share price experienced more moderate changes. The most significant drop occurred between June 2022 and September 2022, moving from 13.40 to 9.75.

Recovery and Volatility (Dec 2022 – Sep 2024)

Following the low in September 2022, the P/E ratio began to recover, reaching a peak of 23.14 in June 2024. However, this recovery was not consistent, with fluctuations observed in each quarter. The ratio increased from 9.75 to 21.35 by December 2022, then experienced further increases to 23.14. This period was characterized by both rising share prices and increasing EPS.

Recent Shift (Sep 2024 – Dec 2025)

From September 2024 onwards, the P/E ratio exhibited a renewed period of volatility. It decreased from 18.95 to 14.76 by December 2024, then increased significantly to 34.74 in December 2025. This recent increase appears to be driven by a substantial decline in EPS, while the share price remained relatively stable. The ratio increased from 14.82 in June 2025 to 34.74 in December 2025.

Overall, the P/E ratio’s trajectory suggests a sensitivity to both share price and, more notably, earnings per share. The most recent data indicates a potentially concerning trend of increasing P/E ratio coupled with decreasing EPS, which warrants further investigation. The period between December 2020 and September 2024 showed a more balanced relationship between share price and EPS, resulting in a more moderate P/E ratio range.

The Price to Operating Profit (P/OP) ratio for the analyzed period demonstrates considerable fluctuation. Initially, the ratio exhibited a decline from 23.79 to 15.54 over the first four quarters, followed by an increase to 19.06. A significant drop then occurred, reaching a low of 7.95 before recovering to 10.47. Subsequent quarters showed volatility, peaking at 22.65 before decreasing to 13.06 in the most recent period.

Initial Decline (Dec 2020 - Jun 2021)

The P/OP ratio experienced a notable decrease during this timeframe. This suggests that while the share price fluctuated, operating profit per share increased, leading to a lower ratio. This could indicate improving operational efficiency relative to market valuation.

Subsequent Volatility (Sep 2021 - Dec 2022)

A period of increased volatility followed, with the ratio initially rising and then experiencing a substantial decline. The sharp decrease to 7.95 is particularly noteworthy, potentially reflecting a significant shift in investor sentiment or a period of strong operating profit growth not fully reflected in the share price. The subsequent recovery suggests a partial correction in market valuation.

Recent Trends (Mar 2023 - Dec 2025)

The most recent observations reveal continued fluctuation. The ratio increased to a high of 22.65, then decreased to 13.06. This suggests ongoing uncertainty or sensitivity to market conditions. The ratio remains within a range observed earlier in the period, but the recent downward trend warrants further investigation.

Overall, the P/OP ratio demonstrates a lack of consistent direction. The observed fluctuations suggest that the relationship between share price and operating profit is dynamic and influenced by various factors. The ratio's movement does not indicate a clear, sustained trend, requiring further analysis alongside other valuation metrics and qualitative factors to form a comprehensive assessment.

The price-to-sales (P/S) ratio for the observed period demonstrates considerable fluctuation. Initially, the ratio decreased from 6.91 to 4.62 between December 2020 and September 2021. Subsequently, it experienced an increase to 5.89 by December 2021, followed by a sharp decline to a low of 2.85 in September 2022. The ratio then exhibited a period of recovery, peaking at 5.03 in March 2023, before entering another phase of decline, reaching 3.54 by December 2025.

Initial Decline (Dec 2020 - Sep 2021)

The P/S ratio experienced a consistent decrease during this period, suggesting a potential shift in investor sentiment regarding the company’s valuation relative to its sales. This could be attributed to various factors, including changing market conditions or concerns about future sales growth.

Volatility and Recovery (Dec 2021 - Mar 2023)

A notable increase in the P/S ratio occurred between December 2021 and March 2023, punctuated by a significant drop in September 2022. This volatility indicates a period of uncertainty, potentially driven by macroeconomic events or company-specific news. The recovery towards March 2023 suggests a renewed investor confidence, albeit temporary.

Recent Trend (Mar 2023 - Dec 2025)

From March 2023 to December 2025, the P/S ratio generally trended downwards, although with some fluctuations. This suggests a cooling of investor enthusiasm or a reassessment of the company’s growth prospects. The ratio concluded the observed period at 3.54, representing a decrease from the peak of 5.03 in March 2023.

Throughout the period, the P/S ratio remained largely within the range of 2.85 to 6.91. The fluctuations suggest the market’s valuation of the company’s sales has been dynamic, responding to a variety of internal and external factors. The most recent trend indicates a potential shift towards a more conservative valuation.

The price-to-book value (P/BV) ratio for the observed period demonstrates considerable fluctuation. Initially, the ratio exhibited a decreasing trend from December 2020 through September 2022, followed by periods of increase and decrease, culminating in a relatively stable range towards the end of the observed timeframe.

Initial Decline (Dec 2020 - Sep 2022)

The P/BV ratio decreased from 24.98 in December 2020 to a low of 7.00 in September 2022. This decline suggests a decreasing premium investors were willing to pay for each dollar of net asset value during this period. The most significant drop occurred between June 2022 and September 2022, coinciding with a substantial decrease in share price and a continued increase in book value per share.

Volatility and Recovery (Dec 2022 - Sep 2023)

Following the low in September 2022, the P/BV ratio experienced volatility, increasing to 8.05 in December 2022 before declining again to 5.72 in September 2023. This period indicates uncertainty in investor sentiment, potentially influenced by broader market conditions or company-specific news. The share price demonstrated similar fluctuations during this timeframe.

Recent Stabilization (Dec 2023 - Sep 2025)

From December 2023 through September 2025, the P/BV ratio generally stabilized, fluctuating between approximately 5.88 and 9.08. While some variation exists, the ratio remained within a narrower range compared to the earlier periods. The book value per share generally increased throughout this period, while the share price showed more variability. The final observed value in September 2025 is 9.08, representing a moderate increase from the low point in September 2022 but still below the initial value in December 2020.

The book value per share consistently increased throughout the entire observed period, rising from 6.50 in December 2020 to 21.62 in September 2025. This consistent growth in book value contrasts with the fluctuating P/BV ratio, suggesting that changes in investor perception and market conditions played a more significant role in determining the valuation multiple than changes in the company’s net asset value.

The observed fluctuations in the P/BV ratio warrant further investigation into the underlying factors driving these changes, including macroeconomic conditions, industry trends, and company-specific performance metrics.