Essential information for investors.

1. Qualcomm
An Owner's Manual for Investors

2. you're entitled to a share of its earnings.
As an owner of Qualcomm's stock

3. NOT TO SCALE
obviously
$5.3
Billion
Qualcomm's
12-Month
Earnings
Qualcomm's
Earnings
Per Share
$3.21

4. If you divide Qualcomm's share
price by its earnings per share (EPS),
you get its price-to-earnings ratio.

5. P/E
Ratio
=
Share Price
EPS
14.81=
$47.46
$3.21
=
This is how much it costs to buy $1
of Qualcomm's annual earnings.

6. A higher P/E ratio implies a lower
potential return.

7. 1
10
100
1,000
100 Biggest S&P Companies
P/ERatio
Most companies have P/E ratios
between 12 and 30.
What Is a Typical Stock's P/E Ratio?

8. You can also use Qualcomm's P/E
ratio to derive its earnings yield.

9. 1
14.81 6.8%
Qualcomm's
Earnings
Yield
1
P/E Ratio
= ==

10. This helps you compare a stock
to other types of investments,
such as bonds and real estate.

11. 6.75%6.63%
4.33%
2.90%
2.45%2.21%
Qualcomm's Earnings YieldClass A Office Building Cap RateS&P 500 Earnings Yield10-Year AAA Corp. Bonds5-Year CDs10-Year Treasuries
Average Rates of Return

12. Of course, if you own one share of
Qualcomm stock, you don't get a
check each year for its EPS.

13. You receive quarterly dividends
instead, which typically account
for only a portion of total earnings.

14. 55%
Qualcomm's Payout Ratio
The payout ratio is the percentage of earnings
paid as dividends. Anywhere from 30% to
70% is normal.

15. 4.05%Qualcomm's Dividend Yield

16. Qualcomm's
Dividend
Yield
=
Dividend
per Share
Share
Price
=
$1.92
$47.46
= 4.05%

17. You can then use this to compare
stocks based on their income-
generating potential.

18. 4.05%
3.86%
3.30%
3.12%
1.73%
0.74%
Qualcomm IBM Wal-Mart Coca-Cola Comcast Visa
Representative Dividend Yields

19. Qualcomm also buys back its own stock.

20. This reduces its share count, which
increases the ownership interest
of each remaining share.

21. $10.5
Billion
-6.9%
Qualcomm's
Buybacks
(TTM)
Change in
Qualcomm's
Share Count
(TTM)

22. Qualcomm's stock?
So, what does the future hold for

23. Qualcomm
29%
S&P 500
96%
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
Today2013201120092007
If the Past Is Prologue...
Total return since Jan. 1, 2006

24. Qualcomm's earnings to grow.
While it's impossible to predict the
future with precision, analysts expect

25. $3.46
$4.18
Current Fiscal Year Next Fiscal Year
Average Earnings per Share Estimate Among Wall
Street Analysts
Divining Qualcomm's Future

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