Broadcom Limited designs, develops, and supplies a range of semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. More info.
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value. We use
analyst's estimates of cash flows going forward 5 years.
See our documentation to learn about this calculation.
|Levered FCF (USD, Millions)||$7,951.50||$8,742.42||$9,433.00||$11,036.61||$12,802.47|
|Source||Analyst x10||Analyst x10||Analyst x3||Extrapolated @ (17%, capped from 45.57%)||Extrapolated @ (16%, capped from 45.57%)|
Discounted (@ 10.82%)
Present value of next 5 years cash flows:
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $12,802 × (1 + 2.47%) ÷ (10.82% – 2.47%)
Terminal value based on the Perpetuity Method where growth (g) =
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows +
$130,176 = $36,200 + $93,976
Value = Total value / Shares Outstanding ($130,176 / 431)Discount to Share Price
Value per share:
Current discount (share price of $248.89): 17.51%
The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.
Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
Discount rate = 10.82% = 2.47% + (1.109 * 7.53%)
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value ($107,388,535,446).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
1.109 = 0.977 (1 + (1- 17%) (16.34%))
Levered Beta used in calculation = 1.109
Mr. Hock E. Tan is an Advisor at True Wind Capital. He has been Chief Executive Officer and President at Brocade Communications Systems, Inc. since November 17, 2017. Mr. Tan has been the Chief Executive Officer, President and an Executive Director of Broadcom Limited since March 2006. Mr. Tan has been Chief Executive Officer and President at Avago Technologies Finance Pte. Ltd. since March 2006. Mr. Tan has been the Chief Executive Officer at Broadcom Corporation since February 1, 2016. He served as Chief Executive Officer and President of Emulex Corporation since May 5, 2015. Mr. Tan has been the Chief Executive Officer and President of PLX Technology Inc. since August 12, 2014. He serves as the President of Micro Networks Corporation. He served as the President, Chairman of the Board and Chief Executive Officer of Integrated Device Technology, Inc. from September 16, 2005 to January 23, 2008. He is a semiconductor industry veteran with more than 25 years of extensive global operations and management experience. He served as the Chief Executive Officer and President after the recapitalization of Integrated Circuit Systems, Inc. from May 11, 1999 to September 2005. He joined Integrated Circuit Systems, Inc. in August 1994 and served as its Senior Vice President and Chief Financial Officer since February 1995. Since April 1996, he served as the Chief Operating Officer of Integrated Circuit Systems, Inc. He served as Vice President of Finance of Commodore International, Ltd. from 1992 to 1994. He served as the Managing Director of Pacven Investment, Ltd. from 1988 to 1992 and was its founder. He served as the Managing Director of Hume Industries (M) Ltd. from 1983 to 1988. He held senior financial positions with PepsiCo, Inc. and General Motors Corporation. He served as the Chairman of Integrated Circuit Systems, Inc. from September 16, 2005 to January 23, 2008. He has been Director at Brocade Communications Systems, Inc. since November 17, 2017. He has been a Director of Broadcom Corporation since February 1, 2016. He serves as a Director of Avago Technologies U.S. Inc. He has been a Member of the Board of Directors of Avago Technologies Finance Pte. Ltd. since March 2006. He served as Integrated Circuit Systems Inc., since May 1999. He holds an MBA from Harvard Business School and an MS and BS in Mechanical Engineering from Massachusetts Institute of Technology.
Average tenure and age of the Broadcom management team in years:
Average tenure and age of the Broadcom board of directors in years:
The company's stock saw significant share price volatility over the past couple of months on the NasdaqGS, rising to the highs of $284.62 and falling to the lows of $235.48. … This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. … Great news for investors – Broadcom is still trading at a fairly cheap price.Simply Wall St - – Full article
To help investors get a top level understanding, I will try to evaluate Broadcom's margin behaviour so investors can evaluate the revenue and cost drivers behind future earnings projections and understand how they may impact on returns compared to the industry. … Margin Calculation for AVGO Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 1.70 Billion ÷ 17.64 Billion = 9.63% Broadcom's margin has contracted in the past five years, as a result of 35.99% in average revenue growth and decline in net income of -11.75% on average, which suggests that a smaller percentage of revenue falls to the bottom line despite the fact revenue has increased over the previous 5 years. … Margins are expected to reverse its previous trend and start to expand, with an expectation of 9.99% in annual revenue growth and annual net income growth forecasted at 41.82%.Simply Wall St - – Full article
See our latest analysis for Broadcom Does AVGO produce enough cash relative to debt? … AVGO has built up its total debt levels in the last twelve months, from $13,642.0M to $17,548.0M – this includes both the current and long-term debt. … On top of this, AVGO has generated cash from operations of $6,551.0M during the same period of time, resulting in an operating cash to total debt ratio of 37.33%, signalling that AVGO’s debt is appropriately covered by operating cash.Simply Wall St - – Full article
See our latest analysis for Broadcom 5 checks you should use to assess a dividend stock Whenever I am looking at a potential dividend stock investment, I always check these five metrics: Is their annual yield among the top 25% of dividend payers? … The reality is that it is too early to consider Broadcom as a dividend investment. … Relative to peers, Broadcom generates a yield of 2.67%, which is high for semiconductors and semiconductor equipment stocks but still below the market's top dividend payers.Simply Wall St - – Full article
NasdaqGS:AVGO Future Profit Dec 12th 17 Advanced Accelerator Applications S.A. … RBBN is expected to deliver an impressive triple-digit top-line growth over the next couple of years, according to market analysts. … NasdaqGS:RBBN Future Profit Dec 12th 17 For more financially robust companies with high growth potential to enhance your portfolio, use our free platform to explore our interactive list of these stocks.Simply Wall St - – Full article
Tech analysts are forecasting for the entire hardware tech industry, a positive double-digit growth of 16.29% in the upcoming year , and a massive growth of 44.22% over the next couple of years. … In this article, I’ll take you through the tech sector growth expectations, and also determine whether AVGO is a laggard or leader relative to its tech sector peers. … NasdaqGS:AVGO PE PEG Gauge Nov 17th 17 Tech hardware companies are typically trading at a PE of 25x, relatively similar to the rest of the US stock market PE of 22x.Simply Wall St - – Full article
Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for AVGO Price per share = 259.29 Earnings per share = 1.495 ∴ Price-Earnings Ratio = 259.29 ÷ 1.495 = 173.4x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … For example, if you inadvertently compared riskier firms with AVGO, then investors would naturally value AVGO at a higher price since it is a less risky investment. … Similarly, if you accidentally compared lower growth firms with AVGO, investors would also value AVGO at a higher price since it is a higher growth investment.Simply Wall St - – Full article
Broadcom Limited designs, develops, and supplies a range of semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates through four segments: Wired Infrastructure, Wireless Communications, Enterprise Storage, and Industrial & Other. The Wired Infrastructure segment provides set-top box system-on-chips (SoCs); cable, digital subscriber line, and passive optical networking central office/consumer premise equipment SoCs; Ethernet switching and routing application products; embedded processors and controllers; serializer/deserializer application specific integrated circuits; optical and copper, and physical layers; and fiber optic laser and receiver components. The Wireless Communications segment offers RF front end modules, filters, and power amplifiers; Wi-Fi, Bluetooth, and global positioning system/global navigation satellite system SoCs; and custom touch controllers. The Enterprise Storage segment provides serial attached small computer system interface, and redundant array of independent disks controllers and adapters; peripheral component interconnect express switches; fiber channel host bus adapters; read channel based SoCs; and preamplifiers. The Industrial & Other segment offers optocouplers, industrial fiber optics, motion control encoders and subsystems, and light emitting diodes. Its products are used in various applications, including enterprise and data center networking, home connectivity, set-top boxes, broadband access, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. The company was formerly known as Avago Technologies Limited and changed its name to Broadcom Limited in February 2016. Broadcom Limited was founded in 2005 and is headquartered in Singapore.
No. 1 Yishun Avenue 7,
Floors 1, 2 and 3,
|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|NasdaqGS||AVGO||New Common Stock||Nasdaq Global Select||US||USD||06. Aug 2009|
|DB||BRX||New Common Stock||Deutsche Boerse AG||DE||EUR||06. Aug 2009|
|LSE||0GQL||New Common Stock||London Stock Exchange||GB||USD||06. Aug 2009|
|WBAG||AVGO||New Common Stock||Wiener Boerse AG||AT||EUR||06. Aug 2009|
|BMV||AVGO N||New Common Stock||Bolsa Mexicana de Valores||MX||MXN||06. Aug 2009|
|Company Analysis updated:||2018/02/18|
|Last estimates confirmation:||2018/02/15|
|Last earnings update:||2017/10/29|
|Last annual earnings update:||2017/10/29|
All dates in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.