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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: SKIP PAUL who wrote (111841)	1/29/2002 3:05:48 PM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 152472

No one is expecting QCOM to grow 100% CAGR. If they were it would be selling for $3000+. if they were going to do 100% CAGR for the next decade, i calculate their NPV at around $2000 with a 13% discount rate. of course, in year 10 that means their net income would be $768BILLION... QCOM would have to grow at 25% CAGR to justify an $80 price. according to my calculations, a 25% CAGR for the next 10 years would give them a NPV of about $27 with the same 13% discount rate. in order to have a NPV of about $80, i would need them to have a forward 10-yr CAGR of 42%.