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Qualcomm (NAS:QCOM) Owner Earnings per Share (TTM)

: 5.50 (As of Dec. 2022)
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In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

Qualcomm's Owner Earnings per Share (TTM) ended in Dec. 2022 was $5.50. It's Price-to-Owner-Earnings ratio for today is 24.17.


The historical rank and industry rank for Qualcomm's Owner Earnings per Share (TTM) or its related term are showing as below:

QCOM' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 10.69   Med: 19.39   Max: 137.19
Current: 24.14


During the past 13 years, the highest Price-to-Owner-Earnings ratio of Qualcomm was 137.19. The lowest was 10.69. And the median was 19.39.


QCOM's Price-to-Owner-Earnings is ranked worse than
59.06% of 425 companies
in the Semiconductors industry
Industry Median: 17.88 vs QCOM: 24.14

Qualcomm's Earnings per Share (Diluted) for the three months ended in Dec. 2022 was $1.98. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2022 was $10.37. It's PE Ratio ratio for today is 12.82.

Qualcomm's EPS without NRI for the three months ended in Dec. 2022 was $2.01. Its EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2022 was $10.44. It's PE Ratio without NRI ratio for today is 12.73.


Qualcomm Owner Earnings per Share (TTM) Historical Data

The historical data trend for Qualcomm's Owner Earnings per Share (TTM) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Qualcomm Annual Data
Trend Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22
Owner Earnings per Share (TTM)
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.48 4.83 3.40 7.77 4.81

Qualcomm Quarterly Data
Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22
Owner Earnings per Share (TTM) Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.59 5.92 5.02 4.81 5.50

Competitive Comparison

For the Semiconductors subindustry, Qualcomm's Owner Earnings per Share (TTM), along with its competitors' market caps and Owner Earnings per Share (TTM) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Qualcomm Owner Earnings per Share (TTM) Distribution

For the Semiconductors industry and Technology sector, Qualcomm's Owner Earnings per Share (TTM) distribution charts can be found below:

* The bar in red indicates where Qualcomm's Owner Earnings per Share (TTM) falls in comparison to its industry or sector. The grey bar indicates the Owner Earnings per Share (TTM)'s extreme value range as defined by GuruFocus.



Qualcomm Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

Qualcomm's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income 11,772
Depreciation, Depletion and Amortization 1,754
Change In Deferred Tax -530
5Y Average of Maintenance Capital Expenditure 1,354
Change In Working Capital -5,416
Shares Outstanding (Diluted Average) 1,131

1. Start with "Net Income" from income statement. Qualcomm's Net Income for the trailing twelve months (TTM) ended in Dec. 2022 was $11,772 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. Qualcomm's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Dec. 2022 was $1,754 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. Qualcomm's Change In Deferred Tax for the trailing twelve months (TTM) ended in Dec. 2022 was $-530 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $1,354 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous year. If the revenue decreased from the previous year, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous year, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

Qualcomm's 5-Year Average Maintenance Capital Expenditure = $1,354 Mil

5. "Change In Working Capital" is from cashflow statement. Qualcomm's Change In Working Capital for the trailing twelve months (TTM) ended in Dec. 2022 was $-5,416 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. Qualcomm's Shares Outstanding (Diluted Average) for the months ended in Dec. 2022 was 1131.000 Mil.

Qualcomm's Onwer Earnings Per Share for Dec. 2022 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 11772 +1754+-530
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-1354.4586012382+-5416)/1131.000
=5.50

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=132.93/5.50
=24.17

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


Qualcomm Owner Earnings per Share (TTM) Related Terms

Thank you for viewing the detailed overview of Qualcomm's Owner Earnings per Share (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.


Qualcomm (NAS:QCOM) Business Description

Qualcomm logo
Industry
Address
5775 Morehouse Drive, San Diego, CA, USA, 92121-1714
Qualcomm develops and licenses wireless technology and designs chips for smartphones. The company's key patents revolve around CDMA and OFDMA technologies, which are standards in wireless communications that are the backbone of all 3G and 4G networks. The firm is a leader in 5G network technology as well. Qualcomm's IP is licensed by virtually all wireless device makers. The firm is also the world's largest wireless chip vendor, supplying nearly every premier handset maker with leading-edge processors. Qualcomm also sells RF-front end modules into smartphones and chips into automotive and Internet of Things markets.
Executives
Neil Martin officer: SVP, Finance and CAO 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
James J Cathey officer: Chief Commercial Officer 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Ann C Chaplin officer: General Counsel&Corp Secretary 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Sylvia Acevedo director 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Gregory N Johnson director C/O INTUIT INC., 2700 COAST AVENUE, MOUNTAIN VIEW CA 94043
Jean-pascal Tricoire director 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Jamie S Miller director GENERAL ELECTRIC COMPANY, 5 NECCO STREET, BOSTON MA 02210
Heather S Ace officer: EVP, Human Resources 3721 VALLEY CENTRE DR SUITE 500, SAN DIEGO CA 92130
Akash J. Palkhiwala officer: SVP & Interim CFO 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
David Wise officer: Interim CFO 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Erin L Polek officer: SVP Corporate Controller & CAO 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Martin B Anstice director 4650 CUSHING PARKWAY, FREMONT CA 94538
Irene B Rosenfeld director 999 VANDERBILT BEACH ROAD, SUITE 601, NAPLES FL 34108
Steven M Mollenkopf director, officer: Chief Executive Officer 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Neil Smit director C/O AMERICA ONLINE LATIN AMERICA, INC., 6600 N. ANDREWS AVE., SUITE 400, FT. LAUDERDALE FL 33309

Qualcomm (NAS:QCOM) Headlines

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