DCF Tool

AVGO

Broadcom Inc – Semiconductor and Related Device Manufacturing
Broadcom Inc., a Delaware corporation headquartered in San Jose, CA, is a global technology leader that designs, develops and supplies a broad range of semiconductor and infrastructure software solutions. Broadcom's category-leading product portfolio serves critical markets including data center, networking, enterprise software, broadband, wireless, storage and industrial. Broadcom Inc solutions include data center networking and storage, enterprise, mainframe and cyber security software focused on automation, monitoring and security, smartphone components, telecoms and factory automation.
Analysis Results
Intrinsic Value $5,324.50
Latest Price $543.19
Relative Value 90% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 54.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 54.7%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 38.7 35.4
2023 59.8 50.0
2024 92.5 70.7
2025 143 99.9
2026 221 141
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 3050 billion. This corresponds to a present value of 1780 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 397 billion. Adding in the terminal value gives a total present value of 2170 billion.

There are presently 408.0 million outstanding shares, so the intrinsic value per share is 5324.5.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 33,172,000,000
Current Cash 24,326,000,000
Current Liabilities 12,562,000,000
Current Debt 580,000,000
Non-Cash Working Capital (NCWC) -3,136,000,000
Change in NCWC -1,869,000,000
EBIT 17,368,000,000
Tax Provision 58,000,000
Depreciation and Amortization 12,082,000,000
Capital Expenditure -886,000,000
Unlevered Free Cash Flow 26,620,547,376
Current Assets 11,895,000,000
Current Cash 7,618,000,000
Current Liabilities 6,371,000,000
Current Debt 827,000,000
Non-Cash Working Capital (NCWC) -1,267,000,000
Change in NCWC -2,017,000,000
EBIT 4,247,000,000
Tax Provision -518,000,000
Depreciation and Amortization 6,905,000,000
Capital Expenditure -463,000,000
Unlevered Free Cash Flow 8,672,000,000
Current Assets 9,917,000,000
Current Cash 5,055,000,000
Current Liabilities 6,899,000,000
Current Debt 2,787,000,000
Non-Cash Working Capital (NCWC) 750,000,000
Change in NCWC -1,727,000,000
EBIT 4,257,000,000
Tax Provision -510,000,000
Depreciation and Amortization 5,808,000,000
Capital Expenditure -432,000,000
Unlevered Free Cash Flow 7,906,000,000
Current Assets 9,107,000,000
Current Cash 4,292,000,000
Current Liabilities 2,338,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 2,477,000,000
Change in NCWC 270,000,000
EBIT 5,458,000,000
Tax Provision -8,084,000,000
Depreciation and Amortization 4,081,000,000
Capital Expenditure -635,000,000
Unlevered Free Cash Flow 9,174,000,000
Current Assets 15,823,000,000
Current Cash 11,204,000,000
Current Liabilities 2,529,000,000
Current Debt 117,000,000
Non-Cash Working Capital (NCWC) 2,207,000,000
Change in NCWC 803,000,000
EBIT 2,689,000,000
Tax Provision 35,000,000
Depreciation and Amortization 4,737,000,000
Capital Expenditure -1,069,000,000
Unlevered Free Cash Flow 7,108,430,136
Current Assets 7,125,000,000
Current Cash 3,097,000,000
Current Liabilities 3,078,000,000
Current Debt 454,000,000
Non-Cash Working Capital (NCWC) 1,404,000,000
Change in NCWC 545,000,000
EBIT 1,829,000,000
Tax Provision 642,000,000
Depreciation and Amortization 3,042,000,000
Capital Expenditure -723,000,000
Unlevered Free Cash Flow 4,693,000,000
Current Assets 3,775,000,000
Current Cash 1,843,000,000
Current Liabilities 1,119,000,000
Current Debt 46,000,000
Non-Cash Working Capital (NCWC) 859,000,000
Change in NCWC -378,000,000
EBIT 1,776,000,000
Tax Provision 76,000,000
Depreciation and Amortization 962,000,000
Capital Expenditure -593,000,000
Unlevered Free Cash Flow 1,674,991,820
Current Assets 3,835,000,000
Current Cash 1,628,000,000
Current Liabilities 1,016,000,000
Current Debt 46,000,000
Non-Cash Working Capital (NCWC) 1,237,000,000
Change in NCWC 840,000,000
EBIT 600,000,000
Tax Provision 33,000,000
Depreciation and Amortization 625,000,000
Capital Expenditure -409,000,000
Unlevered Free Cash Flow 1,598,105,263
Current Assets 1,818,000,000
Current Cash 999,000,000
Current Liabilities 423,000,000
Current Debt 1,000,000
Non-Cash Working Capital (NCWC) 397,000,000
Change in NCWC 136,000,000
EBIT 555,000,000
Tax Provision 16,000,000
Depreciation and Amortization 187,000,000
Capital Expenditure -236,000,000
Unlevered Free Cash Flow 626,366,197
Current Assets 1,691,000,000
Current Cash 1,085,000,000
Current Liabilities 346,000,000
Current Debt 1,000,000
Non-Cash Working Capital (NCWC) 261,000,000
Change in NCWC 46,000,000
EBIT 589,000,000
Tax Provision 22,000,000
Depreciation and Amortization 155,000,000
Capital Expenditure -241,000,000
Unlevered Free Cash Flow 526,849,572

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