Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 15.29%, higher than industry average of 7.74%.

Growth Trajectory

Profitability

In the growth phase company makes 37.98% profit on every dollar of sales, higher than industry average of 21.34%.

Profitability Trajectory

Risk Profile

Investors expect at least 10.07% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)
Return on Invested Capital (%)

Financial Health Overview

Enterprise Value
511.86B USD
Equity Value
454.05B USD
FCF Yield
17.40%
Average ROIC
18.07%
Cost of Capital
9.61%
P/E Ratio
118.36x
Financial MetricMost Recent 12 months (USD)Previous Year (USD)
Revenues57.05B USD51.57B USD
Operating Income or EBIT21.64B USD15.40B USD
Interest Expense3.62B USD3.95B USD
Book Value Of Equity69.59B USD67.68B USD
Book Value Of Debt67.28B USD67.57B USD
Cash and Marketable Securities9.47B USD9.35B USD
Number of Shares Outstanding4.70B--
Minority interests0 USD0 USD
Current Stock Price337.75 USD--
Effective Tax Rate38.00%--
Marginal Tax Rate25.00%--

Performance vs Industry

Revenue Growth
+2.87%
10.60%Company
vs
7.73%Industry
Above Industry
Operating Margin
+16.60%
37.94%Company
vs
21.34%Industry
Above Industry
Broadcom Inc. demonstrates superior performance in both growth and profitability compared to industry peers, indicating strong competitive advantages and operational excellence.

Terminal Value Analysis

Growth Rate
4.59%
Cost of Capital
8.83%
Return on Capital
17.66%
Reinvestment Rate
26.04%
Terminal value represents 75% of total enterprise value, based on 4.59% perpetual growth and 8.83% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 385.44B USD Add
Present Value (Cash Flow Over Next 10 Years) 126.42B USD Add
Value of Operating Assets 511.86B USD Sub-total
Debt 67.28B USD Subtract
Minority Interests — Subtract
Cash 9.47B USD Add
Value of Equity 454.05B USD Sub-total
Number of Shares 4.70B shares Divisor
Estimated Value per Share (Fair Value) 96.54 USD Total
Current Market Price 337.75 USD Reference

Financial Projections

Total FCF Present Value
126.42B USD
Avg Revenue Growth
10.94%
Avg Operating Margin
37.98%
Avg ROIC
18.07%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue69.17B USD79.75B USD91.94B USD106.00B USD122.20B USD138.28B USD153.51B USD167.13B USD178.39B USD186.60B USD195.18B USD
Growth Rate 21.26% 15.28% 15.28% 15.28% 15.28% 13.15% 11.01% 8.87% 6.73% 4.59% 4.59%
PROFITABILITY
Operating Income26.24B USD30.27B USD34.91B USD40.26B USD46.43B USD52.54B USD58.33B USD63.51B USD67.79B USD70.90B USD74.17B USD
Operating Margin 37.94% 37.96% 37.97% 37.98% 38.00% 38.00% 38.00% 38.00% 38.00% 38.00% 38.00%
EBIT (1-tax)16.27B USD18.77B USD21.64B USD24.96B USD28.79B USD33.94B USD39.20B USD44.33B USD49.08B USD53.18B USD55.62B USD
CASH FLOW
Reinvestment6.62B USD7.63B USD8.80B USD10.15B USD10.06B USD13.81B USD12.36B USD10.21B USD7.44B USD7.78B USD14.48B USD
Free Cash Flow9.64B USD11.13B USD12.84B USD14.81B USD18.72B USD20.12B USD26.83B USD34.11B USD41.63B USD45.39B USD41.13B USD
Terminal Value--------------------972.54B USD
Present Value8.76B USD9.19B USD9.63B USD10.09B USD11.59B USD11.34B USD13.80B USD16.05B USD17.95B USD17.99B USD—
EFFICIENCY
ROIC 12.77% 14.00% 15.28% 16.59% 17.92% 19.88% 21.24% 22.51% 23.70% 24.79% 17.66%
Cost of Capital 10.07% 10.07% 10.07% 10.07% 10.07% 9.82% 9.57% 9.32% 9.07% 8.83% 8.83%
Sales/Capital 1.59x 1.59x 1.59x 1.59x 1.59x 1.10x 1.10x 1.10x 1.10x 1.10x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow ($B)
Reinvestment ($B)