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10 June 2008 |
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Valuation Details
| Member: | TheCrunchBlog |
| On: | 25 Jul 2008 |
| Views: | 182 |
| Comments: | 1 |
| Updated: | 5 hours ago |
| Ticker: | QCOM |
| Market: | NASD |
This valuation is part of this blog post:
http://blog.valuecruncher.com/2008/07/qualcomm-qcom-over-us50-a-share-that-looks-rich/
QCOMM grew revenues from US$4.88 billion in 2004 to US$8.87 billion in 2007 – a 22% compound annual growth rate. Our assumptions of revenues for the next three years are US$10.5 billion in 2008 growing to US$13.5 billion in 2010 – a 15% compound annual growth rate. We have projected EBITDA margins to grow from 40.0% in 2008 to 45.0% in 2010. We have used a terminal growth rate of 5%. We calculated this terminal growth rate based on year three growth of 11% dropping to a 4.5% stable growth rate by year 10. We believe there is still considerable additional growth in mobile globally to come which QCOM is well positioned for. We used a terminal capital expenditure number of US$1.0 billion. We have used a WACC (discount rate) of 10%.