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 34.4× TTM earnings — a 62% discount to its Technology sector average of 90.5× in our coverage.

The Numbers

P/E (TTM)

34.4×

Sector avg: 90.5×

P/S (TTM)

4.1×

Sector avg: 21.9×

Market Cap

$181.88B

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 $170.46 34.4×
NVDA $220.92 54.7×
AAPL $316.83 40.1×
MSFT $507.14 31.7×
AVGO $370.45 77.7×
AMD $470.95 177.7×
INTC $89.54 —
PLTR $186.32 433.3×
CSCO $110.47 42.7×
ORCL $149.14 34.5×
CRM $257.65 37.4×
TXN $260.82 47.9×
ADBE $292.76 17.5×

Is the Discount Justified?

August 30, 2026

Qualcomm's P/E ratio of 33.2x is considerably below the Technology sector average of 85.4x. This discount reflects ongoing challenges in its core handset business, which saw a 20% decline in Q3 fiscal 2026 revenue due to memory supply constraints and a weaker smartphone market. However, Qualcomm is actively diversifying, with non-handset revenues, particularly automotive and IoT, showing strong growth. Q3 2026 automotive revenue grew 61% year-over-year to $1.6 billion, marking a record quarter. The company aims for non-handset revenues to reach $40 billion by fiscal 2029, nearly doubling previous targets, driven by automotive, IoT, and a strategic entry into data center AI infrastructure. This diversification strategy is key to its future valuation.

Sources

Frequently Asked Questions

Is QCOM overvalued or undervalued?
On trailing-twelve-month earnings, QCOM trades at 34.4x versus a Technology sector average of 90.5x in our coverage — a 61.9% 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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