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Broadcom (Broadcom) Cyclically Adjusted FCF per Share : $24.51 (As of Jan. 2024)


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What is Broadcom Cyclically Adjusted FCF per Share?

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted FCF per Share and the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years.

Broadcom's adjusted free cash flow per share for the three months ended in Jan. 2024 was $10.049. Add all the adjusted free cash flow per share for the past 10 years together and divide the count will get our Cyclically Adjusted FCF per Share, which is $24.51 for the trailing ten years ended in Jan. 2024.

During the past 12 months, Broadcom's average Cyclically Adjusted FCF Growth Rate was 22.20% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was 30.10% per year. During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was 32.60% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Cyclically Adjusted FCF Growth Rate using Cyclically Adjusted FCF per Share data.

During the past 13 years, the highest 3-Year average Cyclically Adjusted FCF Growth Rate of Broadcom was 36.30% per year. The lowest was 30.10% per year. And the median was 34.05% per year.

As of today (2024-04-27), Broadcom's current stock price is $1344.07. Broadcom's Cyclically Adjusted FCF per Share for the quarter that ended in Jan. 2024 was $24.51. Broadcom's Cyclically Adjusted Price-to-FCF of today is 54.84.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Broadcom was 66.44. The lowest was 22.25. And the median was 38.62.


Broadcom Cyclically Adjusted FCF per Share Historical Data

The historical data trend for Broadcom's Cyclically Adjusted FCF per Share can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Broadcom Cyclically Adjusted FCF per Share Chart

Broadcom Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Cyclically Adjusted FCF per Share
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.11 10.76 14.32 19.13 23.67

Broadcom Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Cyclically Adjusted FCF per Share Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 20.06 21.29 22.50 23.67 24.51

Competitive Comparison of Broadcom's Cyclically Adjusted FCF per Share

For the Semiconductors subindustry, Broadcom's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Broadcom's Cyclically Adjusted Price-to-FCF Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Broadcom's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Broadcom's Cyclically Adjusted Price-to-FCF falls into.



Broadcom Cyclically Adjusted FCF per Share Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted FCF per Share and the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years.

What is Cyclically Adjusted FCF per Share? How do we calculate Cyclically Adjusted FCF per Share?

Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the Cyclically Adjusted FCF per Share of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the free cash flow per share from 2001 through 2010.

We adjusted the 2001 free cash flow per share data with the total inflation from 2001 through 2010 to the equivalent free cash flow in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart's free cash flow is $1 a share in 2001, then the 2001's equivalent free cash flow in 2010 is $1.4 a share. If Wal-Mart's free cash flow is $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 free cash flow in 2010 is $1.35. So on and so forth, you get the equivalent free cash flow per share of past 10 years. Then you add them together and divided the sum by the count to get Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, Broadcom's adjusted Free Cash Flow per Share data for the three months ended in Jan. 2024 was:

Adj_FreeCashFlowPerShare= Free Cash Flow per Share /CPI of Jan. 2024 (Change)*Current CPI (Jan. 2024)
=10.049/129.4194*129.4194
=10.049

Current CPI (Jan. 2024) = 129.4194.

Broadcom Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201404 0.690 100.023 0.893
201407 0.869 100.520 1.119
201410 0.703 100.176 0.908
201501 1.147 98.604 1.505
201504 1.711 99.824 2.218
201507 1.547 100.691 1.988
201510 1.725 100.346 2.225
201601 1.156 99.957 1.497
201604 1.118 100.947 1.433
201607 1.745 101.524 2.224
201610 2.746 101.988 3.485
201701 2.342 102.456 2.958
201704 3.002 103.167 3.766
201707 3.148 103.278 3.945
201710 4.200 104.070 5.223
201801 3.439 104.578 4.256
201804 4.741 105.708 5.804
201807 4.823 106.324 5.871
201810 5.891 106.695 7.146
201901 4.852 106.200 5.913
201904 6.024 107.818 7.231
201907 5.519 108.250 6.598
201910 5.671 108.577 6.760
202001 5.258 108.841 6.252
202004 7.332 108.173 8.772
202007 7.264 109.318 8.600
202010 7.637 109.861 8.997
202101 6.989 110.364 8.196
202104 8.006 112.673 9.196
202107 7.966 115.183 8.951
202110 8.110 116.696 8.994
202201 7.890 118.619 8.608
202204 9.807 121.978 10.405
202207 10.019 125.002 10.373
202210 10.828 125.734 11.145
202301 9.168 126.223 9.400
202304 10.258 127.992 10.372
202307 10.766 128.974 10.803
202310 11.061 129.810 11.028
202401 10.049 129.419 10.049

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.


Broadcom  (NAS:AVGO) Cyclically Adjusted FCF per Share Explanation

If a company grows much fast than inflation, Cyclically Adjusted FCF per Share may underestimate the company's free cash flow. Cyclically Adjusted Price-to-FCF can seem to be too high even the actual Price-to-Free-Cash-Flow is low.

For the Cyclically Adjusted Price-to-FCF, the free cash flow per share of the past 10 years are inflation-adjusted and averaged. The result is used for P/FCF calculation. Since it looks at the average over the last 10 years, the Cyclically Adjusted Price-to-FCF is also called CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Broadcom's Cyclically Adjusted Price-to-FCF of today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=1344.07/24.51
=54.84

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Broadcom was 66.44. The lowest was 22.25. And the median was 38.62.


Be Aware

Cyclically Adjusted Price-to-FCF works better for cyclical companies. It gives you a better idea on the company's real free cash flow value.


Broadcom Cyclically Adjusted FCF per Share Related Terms

Thank you for viewing the detailed overview of Broadcom's Cyclically Adjusted FCF per Share provided by GuruFocus.com. Please click on the following links to see related term pages.


Broadcom (Broadcom) Business Description

Industry
Address
3421 Hillview Avenue, Palo Alto, CA, USA, 94304
Broadcom is the sixth-largest semiconductor company globally and has expanded into various software businesses, with over $30 billion in annual revenue. It sells 17 core semiconductor product lines across wireless, networking, broadband, storage, and industrial markets. It is primarily a fabless designer but holds some manufacturing in-house, like for its best-of-breed FBAR filters that sell into the Apple iPhone. In software, it sells virtualization, infrastructure, and security software to large enterprises, financial institutions, and governments.Broadcom is the product of consolidation. Its businesses are an amalgamation of former companies like legacy Broadcom and Avago Technologies in chips, as well as Brocade, CA Technologies, and Symantec in software.
Executives
Kirsten M. Spears officer: Principal Accounting Officer 1320 RIDDER PARK, SAN JOSE CA 95131
Hock E Tan director, officer: President and CEO BROADCOM INC., 1320 RIDDER PARK DRIVE, SAN JOSE CA 95131
Eddy W Hartenstein director
Mark David Brazeal officer: Chief Legal Officer 1320 RIDDER PARK DRIVE, SAN JOSE CA 95131
Charlie B Kawwas officer: SVP & Chief Sales Officer C/O AVAGO TECHNOLOGIES U.S. INC., 350 WEST TRIMBLE ROAD, SAN JOSE CA 95131
Justine Lien director 1320 RIDDER PARK DRIVE, SAN JOSE CA 95131
Harry L. You director EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748
Check Kian Low director 1320 RIDDER PARK DRIVE, SAN JOSE CA 95131
Raul J Fernandez director 11600 SUNRISE VALLEY DR, RESTON VA 20191
Gayla J Delly director 3000 TECHNOLOGY DR, ANGLETON TX 77515
Diane M Bryant director 2200 MISSION COLLEGE BLVD, SANTA CLARA CA 95054
Thomas H. Krause officer: Chief Financial Officer 1320 RIDDER PARK, SAN JOSE CA 95131
Henry Samueli director, officer: Chief Technical Officer 5300 CALIFORNIA AVENUE, IRVINE CA 92617-3038
Bryan Ingram officer: SVP & GM, Wireless Semicon Div C/O AVAGO TECHNOLOGIES LIMITED, 350 WEST TRIMBLE ROAD, BLDG. 90, SAN JOSE CA 95131
Donald Macleod director

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