Highly Regarded

Is Qualcomm Inc. (QCOM) Stock Undervalued or Overvalued?

Trailing-twelve-month multiples vs Technology sector peers in our coverage

53% Discount TTM fundamentals · sector averages from covered peers

QCOM trades at 37.7× TTM earnings — a 53% discount to its Technology sector average of 79.7× in our coverage.

The Numbers

P/E (TTM)

37.7×

Sector avg: 79.7×

P/S (TTM)

4.4×

Sector avg: 19.1×

Market Cap

$198.87B

EPS (TTM): $4.95

Revenue (TTM)

$44.87B

Net income: $5.37B

Technology Peer Comparison

How QCOM's multiples stack up against sector peers we cover. Click any peer for its own valuation breakdown.

Stock Price P/E (TTM)
QCOM This page $186.38 37.7×
NVDA $195.52 48.4×
AAPL $312.73 39.6×
MSFT $386.79 24.2×
AVGO $373.72 78.3×
AMD $551.70 208.2×
INTC $122.14 —
CSCO $113.98 44.0×
ORCL $143.82 33.3×
PLTR $132.53 308.2×
TXN $303.53 55.7×
CRM $165.63 24.0×
ADBE $218.11 13.1×

Is the Discount Justified?

July 6, 2026

Qualcomm's P/E multiple of 37.5x, a discount to the Technology sector average of 76.3x, reflects a company navigating a challenging smartphone market while aggressively diversifying. The company reported Q2 2026 EPS that beat estimates, but overall revenue declined 3.5% year-over-year, primarily due to a 13% drop in its handset segment. This is pressured by smartphone market headwinds, memory chip shortages, and competition. However, Qualcomm is demonstrating strong growth in its automotive segment, with Q2 2026 revenue of $1.33 billion, up 38% year-over-year, and a substantial design-win pipeline. Its high-margin technology licensing business also provides a stable revenue stream. The discount likely reflects investor caution regarding the core smartphone business, even as diversification into automotive, IoT, and AI offers future growth potential.

Sources

Frequently Asked Questions

Is QCOM overvalued or undervalued?
On trailing-twelve-month earnings, QCOM trades at 37.7x versus a Technology sector average of 79.7x in our coverage — a 52.8% discount. Whether that's justified depends on growth, margins, and risk; see the context above.
What does the P/E ratio tell you?
Price-to-earnings compares a company's share price with its per-share profits. A higher multiple means investors pay more per dollar of earnings — often for faster expected growth — while a lower one can signal slower growth or higher perceived risk.
Why compare against the sector average?
Valuation multiples vary structurally between industries — software typically trades richer than banks or energy. Comparing QCOM with its own Technology peers is more informative than comparing against the whole market.
Is a cheap stock automatically a good buy?
No. A discount can be justified by weak growth or elevated risk (a "value trap"), and a premium can be earned by quality and consistency. Valuation is one input — pair it with the fundamentals and the AI context on this page.

Methodology

Multiples are computed from trailing-twelve-month fundamentals (from company filings) and the latest share price: P/E is price ÷ diluted EPS, and P/S is market cap ÷ revenue. Sector averages use the Technology names in our 50-stock coverage with positive earnings — a deliberately like-for-like, if imperfect, benchmark.

Stocks with negative trailing earnings are compared on price-to-sales instead. Multiples update with prices and fundamentals; AI context refreshes weekly.

Not Financial Advice

This page is for education and information only. Indicators are mechanical calculations, AI commentary can contain errors, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a qualified financial advisor. See our full disclaimer.

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