Discounted Cash Flow (DCF) Analysis Unlevered

Broadcom Inc. (AVGO)

$590.99

-7.59 (-1.27%)
All numbers are in Millions, Currency in USD
Stock DCF: 1,058.59 | 590.99 | undervalue

Operating Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 20,84822,59723,88827,45033,20337,351.0342,017.2847,266.4853,171.4659,814.14
Revenue (%)
EBITDA 8,8849,46611,12414,69119,15518,098.8720,359.9522,903.5125,764.8428,983.63
EBITDA (%)
EBIT 4,8033,6584,2198,65014,1719,791.9111,015.2112,391.3313,939.3715,680.81
EBIT (%)
Depreciation 4,0815,8086,9056,0414,9848,306.969,344.7510,512.1811,825.4613,302.81
Depreciation (%)

Balance Sheet Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Total Cash 4,2925,0557,61812,16312,41611,694.7313,155.7514,799.2916,648.1618,728.01
Total Cash (%)
Account Receivables 3,3903,2592,2972,0712,9584,239.494,769.135,364.936,035.176,789.14
Account Receivables (%)
Inventories 1,1248741,0031,2971,9251,791.402,015.202,266.952,550.162,868.75
Inventories (%)
Accounts Payable 8118558361,0869981,354.761,5241,714.401,928.582,169.51
Accounts Payable (%)
Capital Expenditure -635-432-463-443-424-731.08-822.42-925.16-1,040.74-1,170.76
Capital Expenditure (%)

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

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 20,84822,59723,88827,45033,20337,351.0342,017.2847,266.4853,171.4659,814.14
EBITDA 8,8849,46611,12414,69119,15518,098.8720,359.9522,903.5125,764.8428,983.63
EBIT 4,8033,6584,2198,65014,1719,791.9111,015.2112,391.3313,939.3715,680.81
Tax Rate -169.72%-22.37%-21.16%0.43%7.55%-41.06%-41.06%-41.06%-41.06%-41.06%
EBIAT 12,954.894,476.375,111.858,612.9213,100.8213,812.0515,537.5817,478.6919,662.2922,118.69
Depreciation 4,0815,8086,9056,0414,9848,306.969,344.7510,512.1811,825.4613,302.81
Accounts Receivable -131962226-887-1,281.49-529.64-595.80-670.24-753.97
Inventories -250-129-294-628133.60-223.80-251.76-283.21-318.59
Accounts Payable -44-19250-88356.76169.25190.39214.18240.94
Capital Expenditure -635-432-463-443-424-731.08-822.42-925.16-1,040.74-1,170.76
UFCF 16,400.8910,277.3712,367.8514,392.9216,057.8220,596.8023,475.7326,408.5429,707.7533,419.12
WACC
PV UFCF 19,035.8620,052.3220,847.9121,675.0822,535.06
SUM PV UFCF 104,146.22

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.20
Free cash flow (t + 1) 34,087.50
Terminal Value 549,798.41
Present Value of Terminal Value 370,738.06

Intrinsic Value

Enterprise Value 474,884.29
Net Debt 27,099
Equity Value 447,785.29
Shares Outstanding 423
Equity Value Per Share 1,058.59