QCOM is a solid, fairly cheaply priced business with sustained high ROIC and low leverage; market does not respect its growth rate with a higher multiple.

Let's take a look at Qualcomm. I I I don't know it all that well off the top of my head. Are they due to report? I mean, they're continuing to grow revenue. 44 billion. It seems like they got a spike around CO, though.

So, some of that growth might just be price increase. I don't know how much of the the growth is is unit versus price.

I only bring that up because Qualcomm's revenue seems to spike right after COVID. Uh, and I'm wondering how much of their price movement was was unit um price versus units free cash flows growth growing beautifully.

Wow, that's that's like a great 45 degree turn or angle. Free cash flow yield 6 almost 7%. EVA 13 and a half on a business that's growing steadily. Operating cash flow, stockbased comp moving up but not nearly as fast.

Leverage is very low. They have five billion of of debt but they make 14 billion of EPIDA. So beautifully underleveraged. You can see that here in the chart. Um enterprise value and uh and and market cap blue and the green are very close to each other.

So it means low debt. Uh let's see. 200 day moving average very close to to the 200 day moving average. Inventory is grow increasing uh excuse me days of inventory outstanding is increasing.

So they're holding more inventory which is something we're seem to be seeing in other businesses where they're buying backs. It looks good to me. I mean look it's checking all the boxes.

Okay, here we go. ROIC in the mid mid20s. Great. And that's it's not just a spike for one year, but it's sustained over many, many years. Seems like a great deal. It's got a dividend yield to me.

Yep. Got a dividend. Got a dividend yield. Okay. It seems like a solid business and it seems like it's fairly cheaply priced. Let's take a look at overall. Um here's your EVIDA fiscal year.

It's trading at 13 times right now. It was at 16. It's been 11. It's been six. It's been 12. It's been 28. 9. 13. So, it looks like the enterprise EV, it seems to trade at this level for a long time.

The 13 X seems low for a business that's growing at it rate, but it's been at this level for some time. So, I don't know why, but the market doesn't seem to really want to respect its growth rate and give it a higher multiple.

It could just be legacy of Qualcomm's name and being around the tech tech bubble in the 90s. I'm not sure.