Debt is smaller than equity and it can meet short-term obligations.
Metrics · D/E ~56% · Current Ratio 2.37
💲Is the price expensive now?
Not cheap (fair to slightly pricey)
Because it is a good, popular company, those expectations are already priced in.
Metrics · P/E 20.6 · P/B 9.6
💡Chip sales and patent licensing; 26% operating margin, 36% ROE, low debt. ~21x P/E is below the chip average, but growth stalled (net income -10%).
Compiled from public financial data. Not a recommendation to buy or sell any security. · Source: TradingView (margins, debt, liquidity, P/B are TTM), as of 2026-06-28
Business Summary · Key Value Metrics
A fabless semiconductor company built on two engines: designing smartphone application processors and modems (Snapdragon), and licensing its 3G/4G/5G patents. It is diversifying into automotive, IoT, and PCs. TTM revenue $44.5B, 25.7% operating margin, 36.1% ROE.
Current Price
$189.39
-7.57%-$15.51· Close 2026-06-28
Analyst Consensus Target (external reference)
$221.93
Avg. of 40 external analysts · TradingView (40-analyst consensus, Buy)
P/E (TTM)
20.6x
TTM · below chip-sector avg
Operating Margin
25.7%
TTM
Net Margin
22.3%
TTM
ROE
36.1%
TTM
Revenue Growth
+5.2%
TTM YoY · growth slowing
Market Cap
$199.6B
As of 2026-06-28
Economic Moat · Key Business Segments
Qualcomm runs two businesses: QTL, which holds essential 3G/4G/5G wireless standard-essential patents (SEPs) and collects licensing fees from smartphone makers, and QCT, which designs Snapdragon mobile application processors and modems. Its patent portfolio and modem technology form the core moat, and it is diversifying into automotive, IoT, and PCs. TTM gross margin is 54.8% (source: company IR · 10-K).
Patent portfolio
Licensing of 3G/4G/5G standard-essential patents — a high-margin revenue stream.
Modem and AP technology
A technology edge in Snapdragon processors and X-series modems.
Customer switching costs
Deep supply-chain integration with major OEMs such as Samsung.
Diversification
Expanding into automotive (QAA), IoT, and on-device AI.
10-Year Financial Trends
Revenue grew at a 9-year CAGR of +7.3% (FY2016 $23.6B → FY2025 $44.3B) but was volatile amid industry cycles and legal disputes. FY2018 was a GAAP loss (diluted EPS -$3.39) driven by one-time costs from an EU fine, the Apple dispute, and tax reform, while FY2019 was boosted by a one-time Apple settlement. In FY2025 operating income held up (27.9% operating margin) but net income and EPS were depressed by a one-time tax charge (source: stockanalysis · macrotrends · company IR).
9-Year CAGR: Revenue +7.3% · Operating Income +7.4% · Net Income -0.3% · EPS +3.1%
Sources: stockanalysis · macrotrends · company IR. Fiscal-year (September) GAAP; EPS is diluted. FY2018 was a loss from one-time costs tied to an EU fine, the Apple dispute, and tax reform (excluded from P/E); FY2019 margins jumped on a one-time Apple settlement. FY2025 net income, EPS, P/E, and ROE are distorted by a one-time tax charge (effective tax rate ~56%) — the 27.9% operating margin is normal. ROE in FY2021-22 is abnormally high because buybacks thinned equity. P/E and ROE cover the last 5 years.
Mega-Cap Value Metric Comparison
Among the peer group, Qualcomm has the lowest P/E (TTM) at 20.6. Its 25.7% operating margin trails AVGO (44.1%) and NVDA (64.0%), and its revenue growth (+5.2%) is more modest than either. That said, its 36.1% ROE is comparable to AVGO (37.3%), and it pays a roughly 1.9% dividend (all TTM · sources: TradingView · company filings).
Metric
★ QCOM
AVGO
NVDA
P/E (TTM)
20.6
60.8
29.5
ROE
36.1%
37.3%
114.3%
Operating Margin
25.7%
44.1%
64.0%
Revenue YoY Growth
+5.2%
+32.3%
+70.7%
P/E, ROE, operating margin = TTM; revenue growth = TTM YoY · sources: TradingView · company filings, as of 2026-06-28.
Key Risk Factors (from 10-K)
●
Apple's in-house modem— Apple is transitioning to its own modem, risking the long-term loss of an estimated 15-20% of Qualcomm's mobile revenue contribution.Source: Company 10-K · industry
●
Semiconductor and China cycles— Smartphone demand cycles, the pace of China's market recovery, and U.S.-China trade restrictions all affect revenue.Source: Company 10-K
●
Intensifying competition— MediaTek and Samsung Exynos bringing modems in-house, plus NVIDIA and AMD entering edge AI.Source: Industry
●
Slowing growth momentum— TTM revenue +5.2% and net income -10% signal slowing growth; whether this is structural or cyclical needs monitoring.Source: TradingView · company IR
✦ ValueCrab Dashboard PreviewQCOM $189.39 -7.57% · as of 2026-06-28
Q. What are Qualcomm's (QCOM) key value-investing metrics?P/E (TTM) 20.6, operating margin 25.7%, net margin 22.3%, ROE 36.1%, TTM revenue +5.2%, dividend yield about 1.9%, and a 9-year revenue CAGR of +7.3% (sources: TradingView · stockanalysis, as of 2026-06-28).
Q. How does Qualcomm make money?Two engines. (1) A chip business (QCT) that designs and sells Snapdragon processors and modems, and (2) licensing fees (QTL) earned by licensing its core 3G/4G/5G patents to smartphone makers. Licensing is the high-margin revenue stream.
Q. What is the analyst price-target consensus for Qualcomm?The average target across 40 analysts is $221.93. This is an external consensus, not our own estimate, implying about +17.2% upside from the current $189.39. Source: TradingView, 2026-06.
Q. Why is the P/E below the chip-sector average?The multiple appears to reflect exposure to smartphone cycles, the risk of losing Apple's modem business, and the recent growth slowdown. The key question is whether diversification into automotive and edge AI translates into growth. We do not offer a definitive buy or sell opinion.