The Discounted Cash Flow (DCF) valuation of Broadcom Inc (AVGO) is 60.62 USD. With the latest stock price at 274.18 USD, the upside of Broadcom Inc based on DCF is -77.9%.
Based on the latest price of 274.18 USD and our DCF valuation, Broadcom Inc (AVGO) is a sell. Selling Broadcom stocks now will result in a potential gain of 77.9%.
Range | Selected | |
WACC / Discount Rate | 8.5% - 11.2% | 9.9% |
Long-term Growth Rate | 3.0% - 5.0% | 4.0% |
Fair Price | 41.05 - 106.95 | 60.62 |
Upside | -85.0% - -61.0% | -77.9% |
(USD in millions) | Projections | |||||
11-2024 | 11-2025 | 11-2026 | 11-2027 | 11-2028 | 11-2029 | |
Revenue | 51,574 | 59,309 | 63,820 | 71,050 | 78,240 | 84,983 |
% Growth | 44% | 15% | 8% | 11% | 10% | 9% |
Cost of goods sold | (18,811) | (20,551) | (21,008) | (22,218) | (23,244) | (23,985) |
% of Revenue | 36% | 35% | 33% | 31% | 30% | 28% |
Selling, G&A expenses | (4,959) | (5,703) | (6,136) | (6,832) | (7,523) | (8,171) |
% of Revenue | 10% | 10% | 10% | 10% | 10% | 10% |
Research & Development | (9,310) | (10,706) | (11,521) | (12,826) | (14,124) | (15,341) |
% of Revenue | 18% | 18% | 18% | 18% | 18% | 18% |
Net interest & other expenses | (8,578) | (9,864) | (10,615) | (11,817) | (13,013) | (14,135) |
% of Revenue | 17% | 17% | 17% | 17% | 17% | 17% |
Tax expense | (3,748) | (943) | (1,098) | (1,311) | (1,536) | (1,763) |
Tax rate | 38% | 8% | 8% | 8% | 8% | 8% |
Net profit | 6,168 | 11,542 | 13,442 | 16,046 | 18,801 | 21,588 |
% Margin | 12% | 19% | 21% | 23% | 24% | 25% |