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Broadcom (STU:1YD) Cyclically Adjusted FCF per Share : €22.72 (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 €9.225. 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 €22.72 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 (2024-04-29), Broadcom's current stock price is €1252.40. Broadcom's Cyclically Adjusted FCF per Share for the quarter that ended in Jan. 2024 was €22.72. Broadcom's Cyclically Adjusted Price-to-FCF of today is 55.12.

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 7.20 9.17 12.36 19.33 22.23

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 18.31 19.10 20.37 22.23 22.72

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)
=9.225/129.4194*129.4194
=9.225

Current CPI (Jan. 2024) = 129.4194.

Broadcom Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201404 0.500 100.023 0.647
201407 0.642 100.520 0.827
201410 0.555 100.176 0.717
201501 0.988 98.604 1.297
201504 1.581 99.824 2.050
201507 1.406 100.691 1.807
201510 1.537 100.346 1.982
201601 1.064 99.957 1.378
201604 0.985 100.947 1.263
201607 1.579 101.524 2.013
201610 2.494 101.988 3.165
201701 2.201 102.456 2.780
201704 2.801 103.167 3.514
201707 2.730 103.278 3.421
201710 3.574 104.070 4.445
201801 2.820 104.578 3.490
201804 3.864 105.708 4.731
201807 4.129 106.324 5.026
201810 5.125 106.695 6.217
201901 4.250 106.200 5.179
201904 5.361 107.818 6.435
201907 4.923 108.250 5.886
201910 5.127 108.577 6.111
202001 4.738 108.841 5.634
202004 6.745 108.173 8.070
202007 6.319 109.318 7.481
202010 6.491 109.861 7.647
202101 5.738 110.364 6.729
202104 6.693 112.673 7.688
202107 6.739 115.183 7.572
202110 6.991 116.696 7.753
202201 6.975 118.619 7.610
202204 9.081 121.978 9.635
202207 9.848 125.002 10.196
202210 10.990 125.734 11.312
202301 8.508 126.223 8.723
202304 9.355 127.992 9.459
202307 9.732 128.974 9.766
202310 10.475 129.810 10.444
202401 9.225 129.419 9.225

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


Broadcom  (STU:1YD) 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
=1252.40/22.72
=55.12

* 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 (STU:1YD) 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.

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