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Broadcom Inc.
AVGO
233.04 (-1.35%) 3.15
1.09(T)
Information Technology
Semiconductors and Semiconductor Equipment
Broadcom Inc. designs develops and supplies various semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates in two segments Semiconductor Solutions and Infrastructure Software. It provides Ethernet switching and routing custom silicon solutions optical and copper physical layer devices and fiber optic transmitter and receiver components; set-top box system-on-chips (SoCs) data over cable service interface specifications cable modem and networking infrastructure DSL access multiplexer/PON optical line termination products and Wi-Fi access point SoCs as well as digital subscriber line (DSL)/cable passive optical networking (PON) gateways; and fiber optic components and mobile device connectivity solutions. The company also offers RF front end modules and filters; Wi-Fi Bluetooth and global positioning system/global navigation satellite system SoCs; custom touch controllers; inductive charging application specific integrated circuits; serial attached small computer system interface and redundant array of independent disks controllers and adapters peripheral component interconnect express switches fiber channel host bus adapters read channel based SoCs custom flash controllers and preamplifiers; and optocouplers industrial fiber optics industrial and medical sensors motion control encoders and subsystems light emitting diodes ethernet PHYs switch ICs and camera microcontrollers. Its products are used in various applications in enterprise and data center networking including artificial intelligence networking and connectivity home connectivity set-top boxes broadband access telecommunication equipment smartphones and base stations data center servers and storage systems factory automation power generation and alternative energy systems and electronic displays. Broadcom Inc. was founded in 1961 and is headquartered in Palo Alto California.
Holdings:
Shares:
Cost basis:

Broadcom Inc. (AVGO) price target and intrinsic value estimate

AVGO's fair price estimate is $267.3

This valuation is based on a fair P/E of 29.4 and EPS estimates of $9.09

The median analyst price target for AVGO is $250.0.

Analyst price targets range from $171.6 to $300.0

Is AVGO overvalued or undervalued?

AVGO is currently trading at $233.04

AVGO is undervalued by 13% using the pevaluation method.

AVGO is undervalued by 7% compared to median analyst price targets.

Do you agree with this valuation?

Valuation

PEvaluation

Current price
$233.04
Fairly valued
Low
$200
Median
$267
High
$334
Fair P/E
Margin of safety

Analyst valuation

Current price
$233.04
Fairly valued
Low
$172
Median
$250
High
$300
Strong Buy8
Buy30
Hold4
Sell0
Strong Sell1

Discounted cash-flow

N/A
Negative FCF or FCF estimates
TTM FCFFCF est.Growth FCFTerminal FCF
Discount
rate
10%
Terminal
rate
5%
Growth p.
length
5y
Growth p.
rate
10%
Shares outstan...ROICRevenue growthDebt/FCFAssets/Liabili...
Economic moat: Very wide
None/narrowMediumWideVery wide

Overview

Market data

Market cap:$1.09(T)
Enterprise value:$1.15(T)
Total Equity:$67.68(B)
Shares outstanding:4.69(B)
Div. yield:0.93%
P/S:20.90
P/E:183.50
P/FCF:56.29
P/B:16.14
EPS:$1.3
FCF per share:$4.1
Dividend per share:$2.2

Income (TTM)

RevenueGrossNet
Revenue$51.57(B)
Gross profit$38.79(B)
EBITDA$25.36(B)
Net income$5.89(B)
Gross margin75.2%
Net margin11.4%

Balance sheet

Cash & ST inv.Other ST assetsLong term assetsCurrent liabilitiesLong term debtOther LT liabilitiesEquity
Total assets$165.65(B)
Total liabilities$97.97(B)
Cash & Short-term inv.$9.35(B)
Long-term debt$66.28(B)
Debt issued$39.95(B)
Debt repaid$-19.61(B)

Cash flow (TTM)

CFOCFICFF
FCF$19.41(B)
CapEx$-548.00(M)
Dividends paid$-9.81(B)
Stock issued$190.00(M)
Stock repurchased$-12.39(B)
Stock-based comp.$5.74(B)

Future Growth

Revenue

CAGR: 17.9%
FY+1FY+2FY+3FY+4FY+5
FY+1$61.29(B)
FY+2$70.64(B)
FY+3$81.72(B)
FY+4$106.86(B)
FY+5$118.26(B)

Net Income

CAGR: 19.7%
FY+1FY+2FY+3FY+4FY+5
FY+1$31.10(B)
FY+2$36.85(B)
FY+3$43.73(B)
FY+4$57.35(B)
FY+5$63.78(B)

EPS

CAGR: 21.8%
FY+1FY+2FY+3FY+4FY+5
FY+1$6.36
FY+2$7.59
FY+3$9.19
FY+4$12.36
FY+5$13.99

FCF per share

CAGR: 19.3%
FY+1FY+2FY+3
FY+1$6.72
FY+2$8.29
FY+3$9.56

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Historical Financials

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Income
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