Loading...

Discounted Cash Flow (DCF) Analysis Unlevered


Broadcom Limited

Broadcom Limited (AVGO)

Technology

Operating Data

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 2,520.004,268.886,823.8013,239.5517,635.0820,846.4232,299.4550,044.7677,539.36120,139.48186,144.11
Revenue (%)
EBITDA 757.011,030.932,593.052,530.086,918.248,884.7510,397.1916,109.4124,959.9238,672.9059,919.79
EBITDA (%)
EBIT 570.02405.971,630.89-512.372,181.464,803.024,712.497,301.5311,312.9917,528.3527,158.42
EBIT (%)
Depreciation 186.98624.96962.163,042.454,736.784,081.735,684.708,807.8813,646.9321,144.5532,761.36
Depreciation (%)

Balance Sheet Data

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Total Cash 985.071,603.821,821.963,096.7311,203.564,292.2811,353.2617,590.7327,255.0842,229.0365,429.65
Total Cash (%)
Account Receivables 418.07782.061,018.792,180.552,447.753,325.005,174.378,017.1712,421.8019,246.3429,820.29
Account Receivables (%)
Inventories 285.01519.10524.071,399.421,447.841,123.622,978.014,614.137,149.1311,076.8617,162.49
Inventories (%)
Accounts Payable 277.96514.83616.871,260.401,105.72810.932,790.674,323.876,699.4010,380.0516,082.85
Accounts Payable (%)
Capital Expenditure -236.12-408.96-483.13-717.58-627.81-396.08-1,986.42-3,077.75-4,768.67-7,388.58-11,447.86
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 327.42
Diluted Shares Outstanding 418.00
Cost of Debt
Tax Rate -193.63
After-tax Cost of Debt 9.73
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.78
Total Debt 17,493.00
Total Equity 136,861.56
Total Capital 154,354.56
Debt Weighting 11.33
Equity Weighting 88.67
Wacc

Build Up Free Cash

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 2,520.004,268.886,823.8013,239.5517,635.0820,846.4232,299.4550,044.7677,539.36120,139.48186,144.11
EBITDA 757.011,030.932,593.052,530.086,918.248,884.7510,397.1916,109.4124,959.9238,672.9059,919.79
EBIT 570.02405.971,630.89-512.372,181.464,803.024,712.497,301.5311,312.9917,528.3527,158.42
Tax Rate 2.82%11.15%5.28%-58.52%2.03%-193.63%-38.48%-38.48%-38.48%-38.48%-38.48%
EBIAT 553.97360.711,544.81-812.232,137.2514,103.036,525.8710,111.1815,666.2724,273.3237,609.08
Depreciation 186.98624.96962.163,042.454,736.784,081.735,684.708,807.8813,646.9321,144.5532,761.36
Accounts Receivable --363.99-236.74-1,161.76-267.20-877.26-1,849.37-2,842.80-4,404.63-6,824.54-10,573.94
Inventories --234.08-4.97-875.35-48.42324.22-1,854.39-1,636.12-2,535.00-3,927.73-6,085.63
Accounts Payable -236.87102.05643.53-154.69-294.791,979.751,533.202,375.533,680.655,702.80
Capital Expenditure -172.8374.17234.46-89.77-231.731,590.331,091.341,690.922,619.914,059.28
UFCF 740.95797.312,441.481,071.106,313.9517,105.2112,076.9017,064.6826,440.0140,966.1563,472.96
WACC
PV UFCF 11,124.6314,479.6620,665.8029,494.8342,095.88
SUM PV UFCF 90,678.77

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.56
Free cash flow (t + 1) 66,011.88
Terminal Value 1,447,628.85
Present Value of Terminal Value 960,081.40

Intrinsic Value

Enterprise Value 1,050,760.18
Net Debt 13,200.72
Equity Value 1,037,559.46
Shares Outstanding 418.00
Equity Value Per Share 2,482.20