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Is QUALCOMM, Inc. (QCOM) Stock Over or Undervalued?

Friday, July 01, 2022 03:30 PM | InvestorsObserver Analysts
Is QUALCOMM, Inc. (QCOM) Stock Over or Undervalued?

QUALCOMM, Inc. (QCOM) receives a strong valuation ranking of 75 from InvestorsObserver data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. QCOM has a better value than 75% of stocks based on these valuation analytics. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.

Valuation Rank - 75
QCOM gets a 75 Valuation Rank today. Find out what this means to you and get the rest of the rankings on QCOM!

Metrics Analysis

QCOM has a trailing twelve month Price to Earnings (PE) ratio of 13.1 which places it around the histroical average of roughly 15. QCOM is currently trading at a average value due to investors paying around what the stock is worth in relation to its earnings. QCOM's trailing-12-month earnings per share (EPS) of 9.76 does justify its share price in the market. Trailing PE ratios do not factor in the company's projected growth rate, thus, some firms will have high PE ratios caused by high growth recruiting more investors even if the underlying company has produced low earnings so far.
QCOM currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 0.73. The market is currently undervaluing QCOM in relation to its projected growth due to the PEG ratio being below the fair market value of 1. QCOM's PEG comes from its forward price to earnings ratio being divided by its growth rate. Because PEG ratios include more fundamentals of a company's overall health with additional focus on the future, they are one of the most used valuation metrics by analysts.

Summary

QCOM's valuation metrics are strong at its current price due to a undervalued PEG ratio despite strong growth. QCOM's PE and PEG are better than the market average resulting in a above average valuation score. Click Here to get the full Report on QUALCOMM, Inc. (QCOM) stock.

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