Discounted Cash Flow

Broadcom Inc.

AVGO · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2017 $17.6b $1.8b $5.5b 10.1% $4.02
2018 $20.8b (18.2%) $12.6b (606.8%) $8.2b (50.4%) 60.5% (497.9%) $28.44 (607.5%)
2019 $22.6b (8.4%) $2.7b (-78.4%) $9.3b (12.4%) 12.1% (-80.1%) $6.43 (-77.4%)
2020 $23.9b (5.7%) $3.0b (8.7%) $11.6b (25.2%) 12.4% (2.8%) $6.33 (-1.6%)
2021 $27.4b (14.9%) $6.7b (127.6%) $13.3b (14.9%) 24.5% (98.0%) $15.00 (137.0%)
2022 $33.2b (21.0%) $11.5b (70.7%) $16.3b (22.5%) 34.6% (41.1%) $27.44 (82.9%)
2023 $35.8b (7.9%) $14.1b (22.5%) $17.6b (8.1%) 39.3% (13.6%) $33.93 (23.7%)
2024 $51.6b (44.0%) $5.9b (-58.1%) $19.4b (10.1%) 11.4% (-70.9%) $1.23 (-96.4%)
2025 $63.9b (23.9%) $23.1b (292.3%) $26.9b (38.6%) 36.2% (216.7%) $4.77 (287.8%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model