Leading wireless chipset manufacturer, QUALCOMM Incorporated (NASDAQ:QCOM) runs in leading trade, it slightly up 0.67% to traded at $67.13. QCOM attains analyst recommendation of 2.40 on scale of 1-5 with week’s performance of 5.32%.
Qualcomm Inc.‘s (QCOM) subsidiary, Qualcomm Technologies, Inc., has teamed up with South Korean wireless communication service provider SK Telecom Co. Ltd. to evaluate the over-the-air technology of eLAA (Improved Licensed Assisted Access) and LAA (Licensed Assisted Access) that utilize both licensed and unlicensed spectrum.
To find out the technical position of QCOM, it holds price to book ratio of 3.20 that unearth high-growth companies selling at low-growth prices, but it requires appropriate measurement approach. It has forward price to earnings ratio of 14.10, and price to earnings ratio calculated as 19.55. The price to earnings growth ration calculated as 1.86. QCOM is presenting price to cash flow of 5.65 and free cash flow concluded as 27.76.
EPS estimates indicating constrictive facts, the current year from sell-side analysts, Price to current year EPS stands at -26.90%, and looking further price to next year’s EPS is 10.59%. While take a short look on price to sales ratio, that was 4.24 and price to earning ration of 19.55 attracting passive investors.
Level 3 Communications, Inc. (NYSE:LVLT) kept active in under and overvalue discussion, LVLT holds price to book ratio of 1.55 that presents much better indicator to find market price of a share price over its book value of equity for investment valuation. In addition, the firm has price to earnings ratio of 4.66, which is authentic method to judge but not universal for all situation.
Fundament/ News Factor in Focus
Taking look on ratio analysis, LVLT has forward price to earnings ratio of 22.02, compare to its price to earnings ratio of 4.66. Adding one more ration to find detail valuation of security, price to earnings growth ration that stands at 0.47. The co is presenting price to cash flow as 12.72 and while calculating price to free cash flow it concluded at 17.28, the low single digit may indicate stock is undervalued and vise versa. On other hand, keeping in mind stable cash flows but few growth prospects make traders to value lower.
The firm has price volatility of 2.13% for a week and 2.08% for a month. Its beta stands at 1.75 times. Narrow down four to firm performance, its weekly performance was -3.06% and monthly performance was -9.00%.