Qualcomm Inc. (NASDAQ:QCOM)

The financial ratios exhibit notable fluctuations over the analyzed periods, reflecting varying market valuations and performance metrics.

Price to Earnings (P/E) Ratio

The P/E ratio shows significant variability, starting at a high of 27.4 and then declining to its lowest point of 9.75 during the third quarter of 2022. Subsequently, there is a rebound to levels above 20 by late 2023 and early 2024, with the ratio peaking at 34.74 by the third quarter of 2025. This pattern suggests periods of both valuation compression and expansion, possibly tied to earnings volatility or market sentiment shifts.

Price to Operating Profit (P/OP) Ratio

This ratio generally mirrors the trends in the P/E ratio, starting high at 23.79 and dropping to its trough at 7.95 in the third quarter of 2022. It recovers to peak around 22.65 in early 2024 before declining again towards mid-2025. The trajectory indicates fluctuating investor expectations regarding operational profitability.

Price to Sales (P/S) Ratio

The P/S ratio trends downward from 6.91 at the beginning to lows near 2.85 during late 2022, indicating reduced valuation relative to sales. A recovery is observed, rising to 5.40 in mid-2024, though it decreases somewhat thereafter, ending at 4.35 by late 2025. These movements suggest changing perceptions of revenue quality or growth prospects.

Price to Book Value (P/BV) Ratio

The P/BV ratio declines dramatically from an initial 24.98 to a low of 5.72 by the fourth quarter of 2023, reflecting a substantial decrease in market valuation relative to the book value during this period. A subsequent moderate recovery occurs, reaching 9.08 by late 2025. This indicates fluctuating investor confidence in the company's underlying net asset value.

Overall, the data reveals a pattern of contractions in valuation multiples across key financial metrics through 2021 and 2022, followed by partial recoveries and volatility towards 2024 and 2025. These trends could be indicative of external market conditions affecting the valuation alongside changes in company performance metrics such as earnings, operating profits, sales, and book value.

The analysis of the financial data over the observed quarters reveals notable fluctuations and trends in key performance metrics including share price, earnings per share (EPS), and the price-to-earnings (P/E) ratio.

Share Price

The share price exhibited considerable volatility throughout the periods under review. Initially, there was a decline from 162.3 US$ to 136.57 US$ within the first quarter, followed by oscillations that saw peaks and troughs. Noteworthy is the ascension to 188.2 US$ by the end of 2021, followed by a significant drop to 112.5 US$ by the third quarter of 2022. Subsequent quarters showed a recovery trend, particularly after March 2024, with share price climbing steadily to reach 179.72 US$ by September 2025. These movements suggest fluctuating market sentiment and possible external influences impacting valuation.

Earnings Per Share (EPS)

EPS demonstrated a general growth trend during the earlier periods, rising from 5.92 US$ to a peak of 11.54 US$ by September 2021. However, from that point, EPS began a gradual decline, falling to 6.5 US$ by September 2023, indicating pressures on profitability or earnings quality during this interval. Thereafter, EPS recovered moderately to 10.73 US$ by June 2025 before sharply dropping to 5.17 US$ by September 2025. This last quarter dip could point to seasonal or extraordinary cost impacts, or a decrease in operational performance.

Price-to-Earnings (P/E) Ratio

The P/E ratio varied significantly across the periods, reflecting the combined effects of share price and EPS changes. Initially high at 27.4, the ratio decreased sharply to 9.75 by September 2022, corresponding with the EPS peak and share price dip. After this low point, the P/E ratio increased, reaching upwards of 23.14 by June 2024, signaling that share prices had risen faster than earnings. Towards the end of the observation period, the P/E ratio again surged to 34.74 despite the EPS decline, indicating a market expectation of future earnings improvement or potential overvaluation.

Overall, the data indicate periods of strong earnings growth followed by profit compressions, with the share price generally reflecting these trends but subject to considerable volatility. The P/E ratio movements highlight changing market perceptions of value relative to earnings over time, with recent elevated levels suggesting heightened investor optimism or valuation concerns in the latest quarters.

Share Price Trends

The share price exhibited significant volatility over the observed periods. Initially, the value started at a high point of 162.3 US dollars, followed by a decline through early 2021 reaching a low of 112.5 US dollars in the third quarter of 2022. Thereafter, the share price showed signs of recovery, with an upward trend beginning in late 2023 and into 2024, peaking at 180.95 US dollars in the second quarter of 2024. Towards the end of the timeline, the price fluctuated again but generally maintained levels around 150-180 US dollars, ending near 179.72 US dollars in the third quarter of 2025.

Operating Profit per Share (OPPS) Trends

Operating profit per share displayed an overall increasing trend from the end of 2020 to late 2022, rising from 6.82 US dollars to a peak around 14.15 US dollars. After this peak, there was a notable decline in OPPS, dropping to approximately 7 US dollars by the third quarter of 2023. From this low point, the operating profit per share began a gradual recovery, steadily increasing through 2024 and 2025, reaching around 11.54 US dollars by the third quarter of 2025.

Price to Operating Profit (P/OP) Ratio Analysis

The P/OP ratio demonstrated considerable fluctuations throughout the periods. Starting at a relatively high ratio of 23.79 at the end of 2020, it decreased substantially to reach the lowest point of 7.95 in the third quarter of 2022, suggesting the share price was relatively low compared to operating profit at that time. Subsequently, the ratio increased sharply, peaking at over 22 in the third quarter of 2023, indicating a higher valuation of the share price relative to operating profit. The latter part of the timeline shows a decreasing tendency in the ratio, stabilizing around 14 to 16 by the third quarter of 2025, reflecting a more balanced valuation relative to earnings.

Insights and Interpretation

The data reveals a company experiencing cyclic fluctuations in both market valuation and profitability metrics. The early period shows a decline in share price despite a growing operating profit per share, leading to a lowered P/OP ratio which may reflect market undervaluation or external factors influencing investor confidence. The subsequent recovery in share price aligns with the stabilization and increase in operating profits, while the P/OP ratio's peaks and valleys suggest changing market expectations or sentiment towards future earnings. Overall, the company's financial performance indicates resilience with growth phases interrupted by moderate corrections, and the valuation multiples appear to adjust accordingly to shifts in profitability and market conditions.

The share price exhibits notable volatility over the observed periods. Initially, it declined from $162.30 to a low point near $112.50, followed by intermittent recoveries and dips. Starting from early 2024, the share price displayed a consistent upward trajectory, peaking near $180.95 before experiencing slight fluctuations toward the end of the timeline.

Sales per share reveal a generally positive trend across the timeframe. Beginning at $23.49, this metric steadily increased with minor variations, reaching above $41.00 by the final period. Although there were some periods of slower growth or minor declines, the overall trajectory indicates improving revenue generation on a per-share basis.

The Price-to-Sales (P/S) ratio shows considerable fluctuation, reflecting changes in share price relative to sales per share. In the early periods, the P/S ratio declined substantially from 6.91 to around 2.85, indicating the share price was decreasing faster than sales growth. Following this trough, the ratio experienced a resurgence, with peaks above 5.00 during mid to late 2023 and early 2024. However, it generally trended downward again towards the end, stabilizing between approximately 3.85 and 4.35.

Share Price Trends

Marked by volatility, with initial declines followed by recovery phases and a general increase from early 2024 onward.

Sales per Share Trends

Consistent growth over time, indicating strengthening sales performance on a per-share basis.

Price-to-Sales Ratio Dynamics

Fluctuating ratios suggest changing market perceptions and valuation relative to sales, with periods of undervaluation and subsequent revaluation.

Overall, despite short-term fluctuations in share price and valuation multiples, the underlying sales per share exhibit a positive and steady upward trend. This combination suggests operational growth with varying market sentiment impacting the equity valuation consistency.

Share Price Trend

The share price exhibits notable volatility over the observed quarters. It started at $162.3 at the end of 2020, experienced a decline and fluctuations through 2021 and early 2022, reaching a low around $112.5 in late 2022. Subsequently, it showed a recovery trend, peaking near $180.95 in mid-2024, before experiencing modest fluctuations again toward the latter quarters, ending near $179.72 in late 2025. Overall, the share price reflects cyclical ups and downs with periods of recovery following significant drops.

Book Value Per Share (BVPS) Development

The book value per share demonstrates a steady and consistent upward trend throughout the period. Beginning at $6.50 at the end of 2020, it increased almost continuously despite minor stagnation near the end of 2025. By mid-2025, the BVPS reached over $25 before declining slightly to around $19.8 by the final quarter. This rising trend indicates ongoing accumulation of equity value, supporting a strengthening balance sheet over time.

Price-to-Book Value (P/BV) Ratio Dynamics

The price-to-book value ratio reveals a downward trend from an initially extremely high valuation of approximately 25 times at the end of 2020 to lower multiples through the years. The ratio dropped sharply to around 5.7 to 9.1 range by the later quarters. These decreases reflect the relatively faster growth in book value compared to the share price, signaling moves towards more moderate market valuations relative to the company's equity. Some periodic increases in the P/BV ratio correspond to the rebounds in share price but overall, market valuation relative to book value has become more conservative.

Summary Insights

The company's financial metrics reveal a pattern of improving intrinsic value as shown through the steady rise in book value per share, contrasted against a volatile share price that has recovered from lows but remains more modest relative to the book value than at the start. The declining price-to-book ratio suggests the market’s growing recognition of the company's stronger equity base and possibly a recalibration of valuation expectations. This combination points to an overall solidification of the financial position amid fluctuations in market sentiment.