* Note: Prices are in Million (M) USD.
Description:
Broadcom Inc. is an American designer, developer, manufacturer and global supplier of a wide range of semiconductor and infrastructure software products. Broadcom's product offerings serve the data center, networking, software, broadband, wireless, and storage and industrial markets.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $9,472 M
Debt : $67,282 M
EBITDA : $30,138 M
Net Debt (Debt - Cash): $57,810 M
Since Net Debt is covered by EBITDA within 2 years, 2 points assigned.
This criteria used industry in which company operates:
Sector: Technology
Industry: Semiconductors
Based on sector, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 45.26
Since Forward PE Ratio is greater than 35, 0 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 19 overlapping fiscal years (max 20).Average Free Cash Flow: $5,741 M
Average Revenue: $14,362 M
Revenue Converted To Free Cash Flow (%): 40.0%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 25, 5 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-10-31): $51,574 M
Revenue 4 Years Ago (2020-10-31): $23,888 M
Last 5 Years Average Revenue Growth: 23%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-10-31): $4,778 M
Share Count 5 Years Ago (2020-10-31): $4,210 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $9.61
Trailing 12-Month Earnings Per Share (EPS): $6.72
Average Earnings Per Share (EPS): $8.17
Dividend Per Share (DPS): $2
Payout Ratio: 28%
Dividend Yield: 1%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 19 valid ROE years (max 20).Average ROE: 15.9%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $370
52-Week Low: $133
Threshold Price (15% Above 52-Week Low): $153
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $1,362,125 M
Since Market Cap is greater than 1 Trillion, 5 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 5% exposure of Total Portfolio.
Value-Trade has assigned 27 points to above Broadcom Inc (AVGO) stock.
Last 1 Years Avg PE
40, Fair Value PE
25, Industry Based PE
25, Growth Based PE
23.18, RCFC Based PE
39.97, ROE Based PE
15.87, Risk-Free Anchored PE (25% MoS)
17.61. Based on these 7 values, average assigned is
26.66. Value-Trades has assined P/E value
26.66. An average (Current Year EPS + Next Year EPS) earning per share is
$8.165.
Fair value using multiple P/Es (blended): $217.69 (PE 26.66 × EPS $8.17)
So the Final Fair Value is: $217.69
