Discounted Cash Flow (DCF) Analysis Levered
Broadcom Inc. (AVGO)
$604.39
-10.06 (-1.64%)
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 | $ 604.39 |
|---|---|
| Beta | 1.121 |
| 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 | 8.929 |
| Total Debt | 39,515 |
| Total Equity | 255,656.97 |
| Total Capital | 295,171.97 |
| Debt Weighting | 13.39 |
| Equity Weighting | 86.61 |
| 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 | 15,643.91 | 16,252.58 | 16,884.93 | 17,541.89 | 18,224.41 | |||||
| SUM PV LFCF | 84,547.72 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 8.28 |
| Free cash flow (t + 1) | 27,669.09 |
| Terminal Value | 440,590.60 |
| Present Value of Terminal Value | 296,001.56 |
Intrinsic Value
| Enterprise Value | 380,549.28 |
|---|---|
| Net Debt | 27,099 |
| Equity Value | 353,450.28 |
| Shares Outstanding | 423 |
| Equity Value Per Share | 835.58 |