USD 181.20 (NAS:AVGO). Broadcom Intrinsic Value: Projected FCF description, competitive comparison data, historical data and more." />Broadcom Intrinsic Value: Projected FCF (NAS:AVGO)
Switch to:
Broadcom Inc  (NAS:AVGO) Intrinsic Value: Projected FCF: USD 181.20 (As of Today)

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, Broadcom Inc's projected FCF intrinsic value is USD 181.20. The stock price of Broadcom Inc is USD 265.93. Therefore, Broadcom Inc's Price to Intrinsic Value: Projected FCF Ratio of today is 0.0.

During the past 12 years, the highest Price to Intrinsic Value: Projected FCF Ratio of Broadcom Inc was 2.73. The lowest was 0.00. And the median was 2.27.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Broadcom Inc Annual Data

Oct09 Oct10 Oct11 Oct12 Oct13 Oct14 Oct15 Oct16 Oct17 Oct18
Intrinsic Value: Projected FCF Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 35.18 53.82 75.32 109.39 163.20

Broadcom Inc Quarterly Data

Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19
Intrinsic Value: Projected FCF 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 Premium Member Only Premium Member Only Premium Member Only 139.88 145.32 163.20 170.31 181.20

Competitive Comparison
* 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.


Broadcom Inc Distribution

* The bar in red indicates where Broadcom Inc's Intrinsic Value: Projected FCF falls into.



Calculation

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 equity.

Value = ((Growth Multiple)*Free Cash Flow(6 year avg) + 0.8*Total Stockholders Equity(most recent))/Shares Outstanding (Diluted Average)

In the case of negative total equity, the following formula is used (see the Total Equity section for the reason):

Value = ((Growth Multiple)*Free Cash Flow(6 year avg) + Total Stockholders Equity(most recent)/0.8)/Shares Outstanding (Diluted Average)


Here Broadcom Inc's FCF(6 year avg) is calculate as

Broadcom Inc Quarterly Data

total_freecashflow

Add all the Free Cash Flow together and divide 6 will get Broadcom Inc's FCF(6 year avg) = USD 3,951.33.

Broadcom Inc's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value=(Growth Multiple*Free Cash Flow(6 year avg)+Total Stockholders Equity(Apr19)*0.8)/Shares Outstanding (Diluted Average)
=(14.8626533105*3951.33333333+22172*0.8)/422.000
=181.20

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

The growth multiple is capped between 8.35 and 17.74.

Total 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 medium after taking the above ideas into consideration. Learn more here.

Broadcom Inc's Price to Intrinsic Value: Projected FCF Ratio for today is calculated as

Price to Intrinsic Value: Projected FCF=Share Price/Intrinsic Value: Projected FCF
=265.93/181.196439449
=1.47

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Related Terms

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK