AVGO
Broadcom Inc
Price:  
274.18 
USD
Volume:  
16,735,423
United States | Semiconductors & Semiconductor Equipment

Broadcom DCF Valuation - Growth Exit 5Y

-77.9 %
Upside

What is the DCF valuation of Broadcom?

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 Rate8.5% - 11.2%9.9%
Long-term Growth Rate 3.0% - 5.0%4.0%
Fair Price41.05 - 106.9560.62
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
11-202411-202511-202611-202711-202811-2029
Revenue51,57459,30963,82071,05078,24084,983
% Growth
44%15%8%11%10%9%
Cost of goods sold(18,811)(20,551)(21,008)(22,218)(23,244)(23,985)
% of Revenue36%35%33%31%30%28%
Selling, G&A expenses(4,959)(5,703)(6,136)(6,832)(7,523)(8,171)
% of Revenue10%10%10%10%10%10%
Research & Development(9,310)(10,706)(11,521)(12,826)(14,124)(15,341)
% of Revenue18%18%18%18%18%18%
Net interest & other expenses(8,578)(9,864)(10,615)(11,817)(13,013)(14,135)
% of Revenue17%17%17%17%17%17%
Tax expense(3,748)(943)(1,098)(1,311)(1,536)(1,763)
Tax rate38%8%8%8%8%8%
Net profit6,16811,54213,44216,04618,80121,588
% Margin12%19%21%23%24%25%