Qualcomm

Methodology

Qualcomm's smartphone chip and licensing business creates earnings volatility from handset cycles, though diversification into automotive and IoT adds stability. The calculation works reasonably well when normalizing for smartphone cycle positioning and focusing on licensing revenue stability plus automotive content growth beyond handset exposure.

Methodology

Qualcomm typically trades at moderate PEG ratios reflecting smartphone market maturity offset by licensing stability and automotive semiconductor opportunities. The metric should account for 5G royalty rates and automotive design win conversion. Compare to fabless semiconductor peers while considering Qualcomm's unique licensing model and diversification progress.

Methodology

Qualcomm offers a meaningful dividend with management committed to consistent capital returns alongside aggressive buybacks. The dividend adds significant value supplemented by substantial share repurchases. For Qualcomm, total capital returns through dividends and buybacks matter more than yield alone given strong cash generation.