Broadcom Inc.
AVGO
Semiconductors & Related Devices
Mkt Cap
$638.7BPE
54.91Debt
$80.95BCash
$11.86BEV
$707.8BFCF
$18.39BP/E Ratio
54.91Debt
$80.95BCash
$11.86BEV
$707.8BFCF
$18.39BCharts data: {"Earnings":[{"time":"2016-10-29","value":-1861000000},{"time":"2017-10-28","value":1692000000},{"time":"2018-11-03","value":12259000000},{"time":"2019-11-02","value":2695000000},{"time":"2020-10-31","value":2663000000},{"time":"2021-10-30","value":6437000000},{"time":"2022-10-29","value":11223000000},{"time":"2023-10-28","value":14082000000}],"Sales":[{"time":"2016-10-29","value":13240000000},{"time":"2017-10-28","value":17636000000},{"time":"2018-11-03","value":20848000000},{"time":"2019-11-02","value":22597000000},{"time":"2020-10-31","value":23888000000},{"time":"2021-10-30","value":27450000000},{"time":"2022-10-29","value":33203000000},{"time":"2023-10-28","value":35819000000}],"Net Margins":[{"time":"2016-10-29","value":-0.14055891238670695},{"time":"2017-10-28","value":0.0959401224767521},{"time":"2018-11-03","value":0.5880180353031466},{"time":"2019-11-02","value":0.11926361906447759},{"time":"2020-10-31","value":0.11147856664434025},{"time":"2021-10-30","value":0.2344990892531876},{"time":"2022-10-29","value":0.33801162545553115},{"time":"2023-10-28","value":0.39314330383316115}],"Assets":[{"time":"2017-10-28","value":54418000000},{"time":"2018-11-03","value":50124000000},{"time":"2019-11-02","value":67493000000},{"time":"2020-10-31","value":75933000000},{"time":"2021-10-30","value":75570000000},{"time":"2022-10-29","value":73249000000},{"time":"2023-10-28","value":72861000000}],"Stockholders Equity":[{"time":"2016-10-29","value":21876000000},{"time":"2017-10-28","value":23186000000},{"time":"2018-11-03","value":26657000000},{"time":"2019-11-02","value":24941000000},{"time":"2020-10-31","value":23874000000},{"time":"2021-10-30","value":24962000000},{"time":"2022-10-29","value":22709000000},{"time":"2023-10-28","value":23988000000}],"ROE":[{"time":"2016-10-29","value":-0.0850703967818614},{"time":"2017-10-28","value":0.07297507116363322},{"time":"2018-11-03","value":0.4598792062122519},{"time":"2019-11-02","value":0.10805500982318271},{"time":"2020-10-31","value":0.11154393901315238},{"time":"2021-10-30","value":0.2578719653873888},{"time":"2022-10-29","value":0.49420934431282754},{"time":"2023-10-28","value":0.5870435217608805}],"ROA":[{"time":"2017-10-28","value":0.043790657503032085},{"time":"2018-11-03","value":0.10320405394621339},{"time":"2019-11-02","value":0.05437600936393404},{"time":"2020-10-31","value":0.05557530981259795},{"time":"2021-10-30","value":0.11272991928013762},{"time":"2022-10-29","value":0.19420060342120712},{"time":"2023-10-28","value":0.2224372435184804}]}
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 set-top box system-on-chips (SoCs); cable, digital subscriber line, and passive optical networking central office/consumer premise equipment SoCs; wireless local area network access point SoCs; Ethernet switching and routing custom silicon solutions; embedded processors and controllers; serializer/deserializer application specific integrated circuits; optical and copper, and physical layer devices; and fiber optic components and RF semiconductor devices. The company also offers RF front end modules and filter; Wi-Fi, Bluetooth, and global positioning system/global navigation satellite system SoCs; custom touch controllers; custom touch controllers; inductive charging; attached small computer system interface, and redundant array of independent disks controllers and adapters; peripheral component interconnect express; fiber channel host bus adapters; read channel based SoCs; custom flash controllers; preamplifiers; optocouplers, industrial fiber optics, and motion control encoders and subsystems; light emitting diode, ethernet PHYs, switch ICs, and camera microcontrollers. Its products are used in various applications, including enterprise and data center networking, 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 incorporated in 2018 and is headquartered in San Jose, California.
Sector
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DCF
Discounted Cash Flow Valuation of Broadcom Inc.
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $18.39B | $21.92B | $25.77B | $29.9B | $34.22B | $38.63B | $42.99B | $47.17B | $51.02B | $54.37B | $57.09B | $570.9B |
| DCF | $19.06B | $19.49B | $19.66B | $19.57B | $19.2B | $18.59B | $17.73B | $16.68B | $15.46B | $14.11B | $141.1B | |
| Value | $320.7B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 19%
Earnings Stability -9%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 10-2016 | 10-2017 | 11-2018 | 11-2019 | 10-2020 | 10-2021 | 10-2022 | 10-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|
| Net Margin | -14% | 9.6% | 59% | 12% | 11% | 23% | 34% | 39% | 30% |
| ROA | - | 4.4% | 10% | 5.4% | 5.6% | 11% | 19% | 22% | 8% |
| ROE | -8.5% | 7.3% | 46% | 11% | 11% | 26% | 49% | 59% | 17% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +29.74%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is -0.56%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +12.38%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is +3.07%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +33.64%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +5.54%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 10-2016 | 10-2017 | 11-2018 | 11-2019 | 10-2020 | 10-2021 | 10-2022 | 10-2023 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | - | 3.25 | 2.14 | 3.87 | 3.65 | 3.14 | 2.55 | 2.41 | 4.40 | |
| Debt Equity | - | 0.77 | 0.66 | 1.44 | 1.77 | 1.67 | 1.83 | 1.77 | 1.15 | |
| MIN | ||||||||||
| Graham Stability | - | - | - | 67% | 48% | 100% | 100% | 100% | 48% | |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 4.40.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -0.09.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.48.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 10-2016 | 11-2018 | 10-2020 | 10-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 15% | 11% | 14% | 7.9% | -2.3% |
| Net Income | - | 2.8% | 74% | 25% | -68% |
| Stockholders Equity | 1.3% | -2.1% | 0.16% | 5.6% | -1.4% |
| FCF | 31% | 16% | 15% | 8.1% | -12% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +11.43%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is -2.28%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +2.81%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is -68.44%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is -2.09%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is -1.36%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +16.42%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -12.18%.