Discounted Cash Flow (DCF) Analysis Levered
Broadcom Inc. (AVGO)
$590.99
-7.59 (-1.27%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
Revenue | 20,848 | 22,597 | 23,888 | 27,450 | 33,203 | 37,351.03 | 42,017.28 | 47,266.48 | 53,171.46 | 59,814.14 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 8,880 | 9,697 | 12,061 | 13,764 | 16,736 | 17,670.31 | 19,877.85 | 22,361.18 | 25,154.75 | 28,297.32 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -635 | -432 | -463 | -443 | -424 | -731.08 | -822.42 | -925.16 | -1,040.74 | -1,170.76 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 8,245 | 9,265 | 11,598 | 13,321 | 16,312 | 16,939.22 | 19,055.43 | 21,436.02 | 24,114.01 | 27,126.56 |
Weighted Average Cost Of Capital
Share price | $ 590.99 |
---|---|
Beta | 1.131 |
Diluted Shares Outstanding | 423 |
Cost of Debt | |
Tax Rate | 7.55 |
After-tax Cost of Debt | 4.07% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 8.855 |
Total Debt | 39,515 |
Total Equity | 249,988.77 |
Total Capital | 289,503.77 |
Debt Weighting | 13.65 |
Equity Weighting | 86.35 |
Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
Revenue | 20,848 | 22,597 | 23,888 | 27,450 | 33,203 | 37,351.03 | 42,017.28 | 47,266.48 | 53,171.46 | 59,814.14 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 8,880 | 9,697 | 12,061 | 13,764 | 16,736 | 17,670.31 | 19,877.85 | 22,361.18 | 25,154.75 | 28,297.32 |
Capital Expenditure | -635 | -432 | -463 | -443 | -424 | -731.08 | -822.42 | -925.16 | -1,040.74 | -1,170.76 |
Free Cash Flow | 8,245 | 9,265 | 11,598 | 13,321 | 16,312 | 16,939.22 | 19,055.43 | 21,436.02 | 24,114.01 | 27,126.56 |
WACC | ||||||||||
PV LFCF | 15,655.47 | 16,276.62 | 16,922.41 | 17,593.83 | 18,291.88 | |||||
SUM PV LFCF | 84,740.22 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 8.20 |
Free cash flow (t + 1) | 27,669.09 |
Terminal Value | 446,275.64 |
Present Value of Terminal Value | 300,930.97 |
Intrinsic Value
Enterprise Value | 385,671.19 |
---|---|
Net Debt | 27,099 |
Equity Value | 358,572.19 |
Shares Outstanding | 423 |
Equity Value Per Share | 847.69 |