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 $ 280.81
Diluted Shares Outstanding 431.00
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 121,029.11
Total Capital 138,522.11
Debt Weighting 12.63
Equity Weighting 87.37
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 11,115.4214,455.6820,614.4829,397.2241,921.82
SUM PV UFCF 90,027.02

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.65
Free cash flow (t + 1) 66,011.88
Terminal Value 1,419,610.23
Present Value of Terminal Value 937,606.19

Intrinsic Value

Enterprise Value 1,027,633.21
Net Debt 13,200.72
Equity Value 1,014,432.49
Shares Outstanding 431.00
Equity Value Per Share 2,353.67

Results Unlevered DCF

Wacc / Long-term Growth -4 (%)-3 (%)-2 (%)-1 (%)0 (%)1 (%)2 (%)3 (%)4 (%)
10.65 (%) 1,140.37 Buy 1,251.13 Buy 1,387.50 Buy 1,559.53 Buy 1,783.29 Buy 2,086.26 Buy 2,519.54 Buy 3,190.23 Buy 4,367.10 Buy
10.15 (%) 1,075.98 Buy 1,174.70 Buy 1,295.00 Buy 1,444.82 Buy 1,636.54 Buy 1,890.62 Buy 2,243.36 Buy 2,766.10 Buy 3,620.75 Buy
9.65 (%) 1,017.69 Buy 1,106.07 Buy 1,212.77 Buy 1,344.15 Buy 1,509.87 Buy 1,725.43 Buy 2,017.30 Buy 2,434.70 Buy 3,080.82 Buy
9.15 (%) 964.71 Buy 1,044.17 Buy 1,139.29 Buy 1,255.19 Buy 1,399.55 Buy 1,584.28 Buy 1,829.09 Buy 2,168.97 Buy 2,672.64 Buy
8.65 (%) 916.40 Buy 988.11 Buy 1,073.28 Buy 1,176.11 Buy 1,302.72 Buy 1,462.42 Buy 1,670.16 Buy 1,951.43 Buy 2,353.67 Buy
8.15 (%) 872.22 Buy 937.16 Buy 1,013.75 Buy 1,105.43 Buy 1,217.15 Buy 1,356.28 Buy 1,534.34 Buy 1,770.29 Buy 2,097.89 Buy
7.65 (%) 831.69 Buy 890.69 Buy 959.82 Buy 1,041.93 Buy 1,141.06 Buy 1,263.11 Buy 1,417.07 Buy 1,617.33 Buy 1,888.48 Buy
7.15 (%) 794.43 Buy 848.19 Buy 910.80 Buy 984.65 Buy 1,073.04 Buy 1,180.76 Buy 1,314.91 Buy 1,486.59 Buy 1,714.10 Buy
6.65 (%) 760.07 Buy 809.20 Buy 866.10 Buy 932.76 Buy 1,011.94 Buy 1,107.54 Buy 1,225.23 Buy 1,373.70 Buy 1,566.82 Buy