Discounted Cash Flow (DCF) Analysis Levered

Broadcom Inc. (AVGO)

$ 561.57
-2.40 (-0.43%)
All numbers are in Millions, Currency in USD
Stock DCF: 918.88 | 561.57 | undervalue

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 17,63620,84822,59723,88827,45030,690.9134,314.4738,365.8542,895.5547,960.06
Revenue (%)
Operating Cash Flow 6,5518,8809,69712,06113,76413,705.6015,323.7617,132.9819,155.8021,417.45
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 5,4828,2459,26511,59813,32112,811.1914,323.7616,014.9117,905.7320,019.79

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 17,63620,84822,59723,88827,45030,690.9134,314.4738,365.8542,895.5547,960.06
Operating Cash Flow 6,5518,8809,69712,06113,76413,705.6015,323.7617,132.9819,155.8021,417.45
Capital Expenditure -1,069-635-432-463-443-894.40-1,000-1,118.07-1,250.07-1,397.67
Free Cash Flow 5,4828,2459,26511,59813,32112,811.1914,323.7616,014.9117,905.7320,019.79
WACC
PV LFCF 10,680.7811,239.3511,827.1412,445.6713,096.55
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