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%.

Is Broadcom a buy or a sell?

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%

274.18 USD

Stock Price

60.62 USD

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

Broadcom DCF Valuation: Revenue & Expenses Forecast

(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%