QUALCOMM Incorporated (NASDAQ:QCOM) runs in leading trade, it inching up 0.41% to traded at $67.82. QCOM attains analyst recommendation of 2.40 on scale of 1-5 with week’s performance of 0.13%. As per a Reuters report, Qualcomm Inc. QCOM may outsource the production of its next generation high-end Snapdragon 830 chipset to Samsung Electronics Ltd. The processors will power around half of Samsung’s next flagship line, Galaxy S8.
For long, Qualcomm has operated as the undisputed leader in the mobile chipset space. However, in recent times, it has faced challenges from low-cost chip manufacturers like MediaTek and Rockchip as well as NVIDIA Corporation NVDA and Intel Corporation INTC. Also, other leading smartphone manufacturers like Sony Corp. SNE and LG are reportedly investing heavily to manufacture chipsets. Also, critics believe that Qualcomm’s present Snapdragon 820 chipsets have been delivering a low performance when compared to the previous generation iPhone 6S, which was powered by Apple’s A9 chipset.
To find out the technical position of QCOM, it holds price to book ratio of 3.24 that unearth high-growth companies selling at low-growth prices, but it requires appropriate measurement approach. It has forward price to earnings ratio of 14.28, and price to earnings ratio calculated as 19.80. The price to earnings growth ration calculated as 1.89. QCOM is presenting price to cash flow of 5.73 and free cash flow concluded as 28.11.
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 4.29 and price to earning ration of 19.80 attracting passive investors.
Tableau Software, Inc. (NYSE:DATA) kept active in under and overvalue discussion, DATA holds price to book ratio of 5.16 that presents much better indicator to find market price of a share price over its book value of equity for investment valuation.
Fundament/ News Factor in Focus
Taking look on ratio analysis, DATA has forward price to earnings ratio of 100.25. The co is presenting price to cash flow as 4.61 and while calculating price to free cash flow it concluded at 41.53, 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 2.71% for a week and 2.42% for a month. Its beta stands at 0.80 times. Narrow down four to firm performance, its weekly performance was -5.68% and monthly performance was -11.50%.