Discounted Cash Flow (DCF) Analysis Levered

QUALCOMM Incorporated (QCOM)

$130.45

-9.24 (-6.61%)
All numbers are in Millions, Currency in USD
Stock DCF: 158.66 | 130.45 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 22,25822,73219,57323,53133,56637,854.1042,69048,143.7054,294.1161,230.25
Revenue (%)
Operating Cash Flow 4,6933,8957,2865,81410,5369,958.6911,230.9312,665.6914,283.7516,108.51
Operating Cash Flow (%)
Capital Expenditure -690-784-887-1,407-1,888-1,717.42-1,936.82-2,184.25-2,463.29-2,777.98
Capital Expenditure (%)
Free Cash Flow 4,0033,1116,3994,4078,6488,241.279,294.1010,481.4411,820.4513,330.53

Weighted Average Cost Of Capital

Share price $ 130.45
Beta 1.226
Diluted Shares Outstanding 1,149
Cost of Debt
Tax Rate 11.98
After-tax Cost of Debt 3.12%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.673
Total Debt 15,745
Total Equity 149,887.05
Total Capital 165,632.05
Debt Weighting 9.51
Equity Weighting 90.49
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 22,25822,73219,57323,53133,56637,854.1042,69048,143.7054,294.1161,230.25
Operating Cash Flow 4,6933,8957,2865,81410,5369,958.6911,230.9312,665.6914,283.7516,108.51
Capital Expenditure -690-784-887-1,407-1,888-1,717.42-1,936.82-2,184.25-2,463.29-2,777.98
Free Cash Flow 4,0033,1116,3994,4078,6488,241.279,294.1010,481.4411,820.4513,330.53
WACC
PV LFCF 7,620.227,946.118,285.938,640.289,009.79
SUM PV LFCF 41,502.34

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.15
Free cash flow (t + 1) 13,597.14
Terminal Value 221,091.69
Present Value of Terminal Value 149,430.69

Intrinsic Value

Enterprise Value 190,933.03
Net Debt 8,629
Equity Value 182,304.03
Shares Outstanding 1,149
Equity Value Per Share 158.66