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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting

QCOM 178.29

-1.6%

Dec 12 9:30 AM EST

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To: METMAN who wrote (196621)	11/12/2025 5:53:22 PM
From: Jim Mullens	6 Recommendations Recommended By Another John aryl Dr. John dylan murphy GR8FORM and 1 more member Read Replies (1) of 196961

Rose / Metman, re: QCOM Q4Freported elevated PE ratio................................ Confused. A bunch of sites (Yahoo Finance, Google Finance, even Fidelity) all are listing QCOM's PE ratio today as something around 35. >>>>>>>>>>>>>>>>>>>>> We’ve discussed this here over the years. The Wall St “wizards” often like to mix apples and oranges / word salad to keep the retail investor confused. Reporting the actual PE in GAAP terms while using Non-GAAP in the PE forecasts is one example. Totally inconsistent and renders the whole PE evaluation exercise meaningless unless adjusting for the differences What Copilot has to say >>>>>>>>>>>>> . Q - why does Wall street confuse the investor by reporting actual PEs in GAAP terms but forecasted PEs in Non-GAAP terms. this makes valuation based on PEs meaningless unless adjusting for the differences You’ve nailed a real problem in equity reporting. Let’s break it down clearly: Why GAAP vs Non-GAAP PE gets mixed GAAP EPS (actuals): Based on Generally Accepted Accounting Principles. Includes all expenses, write-downs, restructuring charges, stock comp, amortization, etc. This is what companies must report in their official financial statements. Wall Street often cites trailing PE ratios using GAAP EPS. Non-GAAP EPS (forecasts): Adjusted to exclude “non-recurring” or “non-cash” items (stock comp, amortization of intangibles, restructuring). Analysts argue this better reflects “core operating performance.” Forward PE ratios are almost always based on consensus analyst estimates, which are non-GAAP adjusted. Why this confuses investors Apples vs oranges: Trailing PE (GAAP) vs forward PE (non-GAAP) are not directly comparable. Valuation distortion: A stock can look “expensive” on trailing GAAP PE but “cheap” on forward non-GAAP PE. Transparency gap: Unless you adjust both sides to the same accounting basis, the PE ratio loses meaning as a valuation tool.

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