Discounted Cash Flow (DCF) Analysis Unlevered

Broadcom Inc. (AVGO)

$ 561.745
-2.22 (-0.39%)
All numbers are in Millions, Currency in USD
Stock DCF: 968.25 | 561.745 | undervalue

Operating Data

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 (%)
EBITDA 3,9458,8849,46611,12414,69112,703.5314,203.3915,880.3317,755.2619,851.55
EBITDA (%)
EBIT -7924,8033,6584,2198,6505,150.475,758.576,438.467,198.638,048.54
EBIT (%)
Depreciation 4,7374,0815,8086,9056,0417,553.068,444.829,441.8610,556.6311,803.01
Depreciation (%)

Balance Sheet Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Total Cash 11,2044,2925,0557,61812,16311,213.6412,537.5914,017.8515,672.8917,523.32
Total Cash (%)
Account Receivables 2,4483,3903,2592,2972,0713,788.724,236.044,736.185,295.365,920.56
Account Receivables (%)
Inventories 1,4471,1248741,0031,2971,619.731,810.962,024.772,263.832,531.11
Inventories (%)
Accounts Payable 1,1058118558361,0861,313.281,468.341,641.701,835.532,052.24
Accounts Payable (%)
Capital Expenditure -1,069-635-432-463-443-894.40-1,000-1,118.07-1,250.07-1,397.67
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 561.745
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 6.506
Total Debt 39,730
Total Equity 240,988.61
Total Capital 280,718.60
Debt Weighting 14.15
Equity Weighting 85.85
Wacc

Build Up Free Cash

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
EBITDA 3,9458,8849,46611,12414,69112,703.5314,203.3915,880.3317,755.2619,851.55
EBIT -7924,8033,6584,2198,6505,150.475,758.576,438.467,198.638,048.54
Tax Rate 7.29%-169.72%-22.37%-21.16%0.43%-41.11%-41.11%-41.11%-41.11%-41.11%
EBIAT -734.2812,954.894,476.375,111.858,612.927,267.768,125.849,085.2310,157.8811,357.19
Depreciation 4,7374,0815,8086,9056,0417,553.068,444.829,441.8610,556.6311,803.01
Accounts Receivable --942131962226-1,717.72-447.32-500.13-559.18-625.20
Inventories -323250-129-294-322.73-191.23-213.81-239.06-267.28
Accounts Payable --29444-19250227.28155.05173.36193.83216.71
Capital Expenditure -1,069-635-432-463-443-894.40-1,000-1,118.07-1,250.07-1,397.67
UFCF 2,933.7215,487.8910,277.3712,367.8514,392.9212,113.2515,087.1616,868.4418,860.0321,086.76
WACC
PV UFCF 11,400.7113,364.4014,063.3314,798.8015,572.74
SUM PV UFCF 69,199.98

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.25
Free cash flow (t + 1) 21,508.49
Terminal Value 506,082.22
Present Value of Terminal Value 373,745.85

Intrinsic Value

Enterprise Value 442,945.84
Net Debt 27,567
Equity Value 415,378.84
Shares Outstanding 429
Equity Value Per Share 968.25