Stock Analysis on Net

Broadcom Inc. (NASDAQ:AVGO)

Enterprise Value to EBITDA (EV/EBITDA) 

Microsoft Excel

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Broadcom Inc., EBITDA calculation

US$ in millions

Microsoft Excel
12 months ended: Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Nov 1, 2020 Nov 3, 2019 Nov 4, 2018
Net income attributable to Broadcom Inc. stockholders 14,082 11,495 6,736 2,960 2,724 12,259
Add: Net income attributable to noncontrolling interest 351
Less: Loss from discontinued operations, net of income taxes (1) (12) (19)
Add: Income tax expense 1,015 939 29 (518) (510) (8,084)
Earnings before tax (EBT) 15,097 12,434 6,765 2,443 2,226 4,545
Add: Interest expense 1,622 1,737 1,885 1,777 1,444 628
Earnings before interest and tax (EBIT) 16,719 14,171 8,650 4,220 3,670 5,173
Add: Amortization of intangible and right-of-use assets 3,333 4,455 5,502 6,335 5,239 3,566
Add: Depreciation 502 529 539 570 569 515
Earnings before interest, tax, depreciation and amortization (EBITDA) 20,554 19,155 14,691 11,125 9,478 9,254

Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-11-01), 10-K (reporting date: 2019-11-03), 10-K (reporting date: 2018-11-04).

Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. Broadcom Inc. EBITDA increased from 2021 to 2022 and from 2022 to 2023.

Enterprise Value to EBITDA Ratio, Current

Broadcom Inc., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 598,403
Earnings before interest, tax, depreciation and amortization (EBITDA) 20,554
Valuation Ratio
EV/EBITDA 29.11
Benchmarks
EV/EBITDA, Competitors1
Advanced Micro Devices Inc. 74.93
Analog Devices Inc. 16.35
Applied Materials Inc. 19.55
Enphase Energy Inc. 24.63
Intel Corp. 18.61
KLA Corp. 21.34
Lam Research Corp. 21.45
Micron Technology Inc. 43.11
NVIDIA Corp. 61.69
ON Semiconductor Corp. 10.07
Qualcomm Inc. 19.14
Texas Instruments Inc. 17.37
EV/EBITDA, Sector
Semiconductors & Semiconductor Equipment 46.86
EV/EBITDA, Industry
Information Technology 29.91

Based on: 10-K (reporting date: 2023-10-29).

1 Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.


Enterprise Value to EBITDA Ratio, Historical

Broadcom Inc., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Nov 1, 2020 Nov 3, 2019 Nov 4, 2018
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 543,033 259,406 289,725 210,185 154,639 112,946
Earnings before interest, tax, depreciation and amortization (EBITDA)2 20,554 19,155 14,691 11,125 9,478 9,254
Valuation Ratio
EV/EBITDA3 26.42 13.54 19.72 18.89 16.32 12.21
Benchmarks
EV/EBITDA, Competitors4
Advanced Micro Devices Inc. 65.81 22.63 34.19 62.10 82.59
Analog Devices Inc. 15.56 16.23 38.55 23.61 18.67 14.37
Applied Materials Inc. 15.75 11.04 17.54 16.82 14.60 6.24
Enphase Energy Inc. 27.19 55.15 99.19 155.30 62.22
Intel Corp. 18.96 6.20 6.02 6.40 8.73
KLA Corp. 15.67 14.97 19.26 18.10 14.14 10.91
Lam Research Corp. 15.35 11.34 16.67 17.76 10.07 7.08
Micron Technology Inc. 32.38 3.26 6.05 6.46 3.90 2.41
NVIDIA Corp. 95.68 57.59 58.96 52.90 21.10
ON Semiconductor Corp. 10.57 11.65 14.40 20.27 11.13
Qualcomm Inc. 12.82 7.84 12.76 19.49 10.55 28.47
Texas Instruments Inc. 16.36 14.69 15.54 21.75 17.73
EV/EBITDA, Sector
Semiconductors & Semiconductor Equipment 26.00 14.60 15.64 15.01 11.62
EV/EBITDA, Industry
Information Technology 23.37 18.32 20.41 19.60 14.44

Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-11-01), 10-K (reporting date: 2019-11-03), 10-K (reporting date: 2018-11-04).

1 See details »

2 See details »

3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 543,033 ÷ 20,554 = 26.42

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/EBITDA Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. Broadcom Inc. EV/EBITDA ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.