Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.
As of today (2023-03-20), Broadcom's Intrinsic Value: Projected FCF is $421.27. The stock price of Broadcom is $642.48. Therefore, Broadcom's Price-to-Intrinsic-Value-Projected-FCF of today is 1.5.
The historical rank and industry rank for Broadcom's Intrinsic Value: Projected FCF or its related term are showing as below:
AVGO'
s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 1.12 Med: 1.88 Max: 2.78
Current: 1.53
During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Broadcom was 2.78. The lowest was 1.12. And the median was 1.88.
AVGO's Price-to-Projected-FCF is ranked better than 53.36% of 536
companies
in the Semiconductors industry
Industry Median: 1.58
vs AVGO: 1.53
Broadcom Intrinsic Value: Projected FCF Historical Data
The historical data trend for Broadcom's Intrinsic Value: Projected FCF 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 Annual Data
Trend
Oct13
Oct14
Oct15
Oct16
Oct17
Oct18
Oct19
Oct20
Oct21
Oct22
Intrinsic Value: Projected FCF
157.87
207.84
264.26
296.12
420.42
Broadcom Quarterly Data
Apr18
Jul18
Oct18
Jan19
Apr19
Jul19
Oct19
Jan20
Apr20
Jul20
Oct20
Jan21
Apr21
Jul21
Oct21
Jan22
Apr22
Jul22
Oct22
Jan23
Intrinsic Value: Projected FCF
300.25
306.45
378.89
420.42
421.27
Competitive Comparison
For the Semiconductors subindustry, Broadcom's Intrinsic Value: Projected FCF, along with its competitors' market caps and Intrinsic Value: Projected 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 Intrinsic Value: Projected FCF Distribution
For the Semiconductors industry and Technology sector, Broadcom's Intrinsic Value: Projected FCF distribution charts can be found below:
* The bar in red indicates where Broadcom's Intrinsic Value: Projected FCF falls in comparison to its industry or sector. The grey bar indicates the Intrinsic Value: Projected FCF's extreme value range as defined by GuruFocus.
Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.
The details of how we calculate the intrinsic value of stocks are described in detail here.
This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.
* 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.
The growth multiple is capped between 8.35 and 17.74.
Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.
Broadcom's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as
Price-to-Intrinsic-Value-Projected-FCF
=
Share Price
/
Intrinsic Value: Projected FCF
=
642.48
/
421.26955674734
=
1.53
* 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.
Broadcom Intrinsic Value: Projected FCF Related Terms
Thank you for viewing the detailed overview of Broadcom's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.
Broadcom—the combined entity of Broadcom and Avago—boasts a highly diverse product portfolio across an array of end markets. Avago focused primarily on radio frequency filters and amplifiers used in high-end smartphones, such as the Apple iPhone and Samsung Galaxy devices, in addition to an assortment of solutions for wired infrastructure, enterprise storage, and industrial end markets. Legacy Broadcom targeted networking semiconductors, such as switch and physical layer chips, broadband products (such as television set-top box processors), and connectivity chips that handle standards such as Wi-Fi and Bluetooth. The company has acquired Brocade, CA Technologies, Symantec's enterprise security business, and has a pending deal to acquire VMware to bolster its offerings in software.
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