Seeking Alphaยท2025-05-19 12:15Core Viewpoint - Qualcomm is currently undervalued with a Price-To-FCF ratio of 14.2, primarily due to risks associated with losing Apple's business and customer concentration with Samsung and Xiaomi. However, it is projected to retain 70% of Apple's business by 2025 [1]. Group 1: Business Analysis - Qualcomm's competitive advantage has strengthened, positioning the company to invest in high-growth opportunities across various industries [1]. - The company employs a value investing approach that emphasizes robust business models and strategic foresight [1]. - The discounted cash flow (DCF) valuation methodology is primarily used for assessing Qualcomm's intrinsic value, while also being adaptable to other valuation techniques [1]. Group 2: Strategic Positioning - Qualcomm focuses on companies that have the potential to significantly influence the global landscape in the coming years [1]. - Business model frameworks from institutions like Harvard Business School are utilized for in-depth analysis, ensuring a comprehensive understanding of Qualcomm's strategic positioning within its industry [1]. - The approach taken by Qualcomm facilitates informed investment decisions with an emphasis on long-term growth potential and risk mitigation [1].