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QUALCOMM Incorporated Message Board

  • believerinbalancesheettrends believerinbalancesheettrends Jul 25, 2014 6:00 PM Flag

    Value of QCOM is over 110 if one uses conservative valuation.

    $114 / share.
    $32.7 billion in cash & equivalents = $19.46 per share.
    Subtract $19.46 cash from current price to provide a zero sum benchmark = $57 per share.
    Debt: 0.00, no adjustment needed.
    Dividend adjustment is $1.68, subtract to compute benchmark price = $55.32
    Growth rate 20 percent (assumes less than latest growth).
    Earnings per share next year 5.58 results in a p/e ratio of 9.91.
    PEG ratio computed on latest lowered earnings projections is .50 rounded.
    To compute next year's value divide $55.32 by PEG ratio = $110.64.
    Reality: If one values QCOM on reality, the stock is worth much more than $110.

    Sentiment: Strong Buy

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    • Nice to see at least somebody is computing the value of stocks. No question some of the best stocks are being battered down by over zealous pundit articles and downgrades. Regardless of what the issues are, Qualcomm is clearly experiencing hyper growth. As a stockholder, I care about profit, not pundits.

      Sentiment: Strong Buy

    • "Price is what you pay. Value is what you get."
      “Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”
      --Warren Buffet.
      Those who failed math are selling.
      Those who are fearful are selling.

      Sentiment: Strong Buy

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