27% of Qualcomm’s Stock Is Value of Its Cash
Trefis submits:
Qualcomm (NASDAQ:QCOM) makes money primarily by selling CDMA chipsets to mobile phone manufacturers such as Apple (NASDAQ:AAPL), Nokia (NYSE:NOK), Samsung and Motorola (NYSE:MOT), and by charging a royalty to mobile manufacturers on every phone sold.
We estimate the Qualcomm’s cash balance constitutes around 27% of the $42 Trefis price estimate for Qualcomm’s stock. In comparison, the company’s chipset business constitutes 43% of our estimate while its mobile phone royalty business is about 29% of the Trefis price estimate.
Investing, Long Term Investment, stock market | admin March 3, 2010
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