Discounted Cash Flow (DCF) Analysis Levered
Broadcom Inc. (AVGO)
$ 561.57
-2.40 (-0.43%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 17,636 | 20,848 | 22,597 | 23,888 | 27,450 | 30,690.91 | 34,314.47 | 38,365.85 | 42,895.55 | 47,960.06 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 6,551 | 8,880 | 9,697 | 12,061 | 13,764 | 13,705.60 | 15,323.76 | 17,132.98 | 19,155.80 | 21,417.45 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -1,069 | -635 | -432 | -463 | -443 | -894.40 | -1,000 | -1,118.07 | -1,250.07 | -1,397.67 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 5,482 | 8,245 | 9,265 | 11,598 | 13,321 | 12,811.19 | 14,323.76 | 16,014.91 | 17,905.73 | 20,019.79 |
Weighted Average Cost Of Capital
| Share price | $ 561.57 |
|---|---|
| Beta | 0.989 |
| Diluted Shares Outstanding | 429 |
| Cost of Debt | |
| Tax Rate | 0.43 |
| After-tax Cost of Debt | 4.72% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 6.508 |
| Total Debt | 39,730 |
| Total Equity | 240,913.53 |
| Total Capital | 280,643.53 |
| Debt Weighting | 14.16 |
| Equity Weighting | 85.84 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 17,636 | 20,848 | 22,597 | 23,888 | 27,450 | 30,690.91 | 34,314.47 | 38,365.85 | 42,895.55 | 47,960.06 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 6,551 | 8,880 | 9,697 | 12,061 | 13,764 | 13,705.60 | 15,323.76 | 17,132.98 | 19,155.80 | 21,417.45 |
| Capital Expenditure | -1,069 | -635 | -432 | -463 | -443 | -894.40 | -1,000 | -1,118.07 | -1,250.07 | -1,397.67 |
| Free Cash Flow | 5,482 | 8,245 | 9,265 | 11,598 | 13,321 | 12,811.19 | 14,323.76 | 16,014.91 | 17,905.73 | 20,019.79 |
| WACC | ||||||||||
| PV LFCF | 10,680.78 | 11,239.35 | 11,827.14 | 12,445.67 | 13,096.55 | |||||
| SUM PV LFCF | 66,932.28 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.25 |
| Free cash flow (t + 1) | 20,420.19 |
| Terminal Value | 480,474.95 |
| Present Value of Terminal Value | 354,834.68 |
Intrinsic Value
| Enterprise Value | 421,766.96 |
|---|---|
| Net Debt | 27,567 |
| Equity Value | 394,199.96 |
| Shares Outstanding | 429 |
| Equity Value Per Share | 918.88 |