On Oct 18, 2017, a group of MS in Global Finance (MSGF) students submitted their Capstone Project on the valuation of Qualcomm. The group of 5 from Hong Kong, Chicago, Washington D.C. and Nigeria, gave their best shot at Qualcomm with a valuation at US$ 69.43 per share, after considering 3 different valuation methods learned in the program, and analyzing Qualcomm’s ventures in China and licensing negotiations with major clients worldwide. Back then Qualcomm was trading at US$ 52.21 on Nasdaq.
Two weeks later on Nov 5, 2017, CNBC reported that Broadcom was preparing a bid for Qualcomm at $70 per share. The MSGF Project Team has done an amazing job missing the offer from Broadcom by a thin gap of US$ 0.57. On Nov 17, Qualcomm was trading at US$ 66.11, rising by US$ 13.9 (27%) per share since the MSGF Team submitted their valuation.
The MSGF Capstone Project is a year-long project designed for students to apply different financial skills learnt throughout the program on real-world financial issues. This group consisted of Ruth Lam and Henry Wong from Hong Kong, James Jahnke from Chicago, Glover Kebe from Washington D.C., and Leye Adekeye from Nigeria, advised by Professor Jialin Yu at HKUST.
Related link: https://www.cnbc.com/2017/11/05/broadcom-is-preparing-to-make-an-offer-to-qualcomm-as-early-as-monday.html
Project group members: (from left) Leye Adekeye (Nigeria), Glover Kebe and James Jahnke (US), Ruth Lam and Henry Wong (Hong Kong)