Highly Regarded

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

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

62% Discount TTM fundamentals · sector averages from covered peers

QCOM trades at 35.3× TTM earnings — a 62% discount to its Technology sector average of 91.7× in our coverage.

The Numbers

P/E (TTM)

35.3×

Sector avg: 91.7×

P/S (TTM)

4.2×

Sector avg: 21.9×

Market Cap

$186.31B

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 $174.61 35.3×
NVDA $216.01 53.5×
AAPL $342.78 43.4×
MSFT $528.19 33.1×
AVGO $333.40 69.9×
AMD $536.41 202.4×
INTC $91.31 —
PLTR $186.74 434.3×
CSCO $107.70 41.6×
ORCL $129.57 30.0×
TXN $280.15 51.4×
CRM $240.15 34.9×
ADBE $245.38 14.7×

Is the Discount Justified?

October 4, 2026

Qualcomm's P/E of 37.3x, a discount to the technology sector average of 91.7x, reflects ongoing challenges in its traditional smartphone chip business, which saw a 20% year-over-year decline in handset revenue in Q3 fiscal 2026. However, the company is actively diversifying, with its automotive segment surging 61% year-over-year and marking 23 consecutive quarters of double-digit growth. IoT revenue also increased. Qualcomm has ambitious plans to double its non-handset sales target to $40 billion by fiscal 2029, with significant contributions expected from AI data center products and strategic automotive partnerships. This strategic shift towards higher-growth, diversified markets aims to re-rate its valuation over time.

Sources

Frequently Asked Questions

Is QCOM overvalued or undervalued?
On trailing-twelve-month earnings, QCOM trades at 35.3x versus a Technology sector average of 91.7x in our coverage — a 61.5% 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.

Keep Digging on QCOM

Qualcomm Inc. Overview

Price, chart, analysis & financials

QCOM: Overbought or Oversold?

Updated daily

QCOM: Why Is It Moving?

Updated daily

QCOM: Price Prediction

Updated daily

Same question, Technology peers

CRM AMD NVDA PLTR INTC TXN