Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Broadcom Inc. (NASDAQ:AVGO)

Enterprise Value to FCFF (EV/FCFF)

Intermediate level

Free Cash Flow to The Firm (FCFF)

Broadcom Inc., FCFF calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Nov 1, 2020 Nov 3, 2019 Nov 4, 2018 Oct 29, 2017 Oct 30, 2016 Nov 1, 2015
Net income (loss) attributable to Broadcom Inc. stockholders 2,960  2,724  12,259  1,692  (1,739) 1,364 
Net (income) loss attributable to noncontrolling interest —  —  351  92  (122) — 
Net noncash charges 8,008  7,157  (2,774) 5,753  4,789  990 
Changes in assets and liabilities, net of acquisitions and disposals 1,093  (184) (956) (986) 483  (36)
Net cash provided by operating activities 12,061  9,697  8,880  6,551  3,411  2,318 
Cash paid for interest, net of tax1 1,112  1,017  432  304  372  163 
Purchases of property, plant and equipment (463) (432) (635) (1,069) (723) (593)
Proceeds from disposals of property, plant and equipment 12  88  239  441  5  110 
Free cash flow to the firm (FCFF) 12,722  10,370  8,916  6,227  3,065  1,998 

Based on: 10-K (filing date: 2020-12-18), 10-K (filing date: 2019-12-20), 10-K (filing date: 2018-12-21), 10-K (filing date: 2017-12-21), 10-K (filing date: 2016-12-23), 10-K (filing date: 2015-12-17).

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Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Broadcom Inc.’s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Broadcom Inc.’s FCFF increased from 2018 to 2019 and from 2019 to 2020.

Interest Paid, Net of Tax

Broadcom Inc., interest paid, net of tax calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Nov 1, 2020 Nov 3, 2019 Nov 4, 2018 Oct 29, 2017 Oct 30, 2016 Nov 1, 2015
Effective Income Tax Rate (EITR)
EITR1 21.00% 21.00% 21.00% 1.90% 17.00% 5.20%
Interest Paid, Net of Tax
Cash paid for interest, before tax 1,408  1,287  547  310  448  172 
Less: Cash paid for interest, tax2 296  270  115  6  76  9 
Cash paid for interest, net of tax 1,112  1,017  432  304  372  163 

Based on: 10-K (filing date: 2020-12-18), 10-K (filing date: 2019-12-20), 10-K (filing date: 2018-12-21), 10-K (filing date: 2017-12-21), 10-K (filing date: 2016-12-23), 10-K (filing date: 2015-12-17).

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2 2020 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 1,408 × 21.00% = 296

Enterprise Value to FCFF Ratio, Current

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

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in millions)
Enterprise value (EV) 213,126 
Free cash flow to the firm (FCFF) 12,722 
Valuation Ratio
EV/FCFF 16.75
Benchmarks
EV/FCFF, Competitors1
Advanced Micro Devices Inc. 114.03
Analog Devices Inc. 29.63
Apple Inc. 27.95
Applied Materials Inc. 31.66
Cisco Systems Inc. 13.59
Intel Corp. 10.72
Lam Research Corp. 40.31
Micron Technology Inc. 3,668.84
NVIDIA Corp. 72.51
Qualcomm Inc. 30.67
Texas Instruments Inc. 29.94
EV/FCFF, Sector
Technology Hardware & Equipment 25.97
EV/FCFF, Industry
Technology 29.58

Based on: 10-K (filing date: 2020-12-18).

1 Click competitor name to see calculations.

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

Enterprise Value to FCFF Ratio, Historical

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

Microsoft Excel LibreOffice Calc
Nov 1, 2020 Nov 3, 2019 Nov 4, 2018 Oct 29, 2017 Oct 30, 2016 Nov 1, 2015
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 210,185  154,639  112,946  116,306  86,119  40,968 
Free cash flow to the firm (FCFF)2 12,722  10,370  8,916  6,227  3,065  1,998 
Valuation Ratio
EV/FCFF3 16.52 14.91 12.67 18.68 28.10 20.50
Benchmarks
EV/FCFF, Competitors4
Advanced Micro Devices Inc. 126.98 169.58 — 770.71 121.45 —
Analog Devices Inc. 27.12 21.68 16.04 36.93 16.91 21.52
Apple Inc. 24.66 18.01 15.09 17.59 11.77 9.77
Applied Materials Inc. 22.52 18.91 9.96 15.58 15.02 20.88
Cisco Systems Inc. 10.35 12.56 14.32 8.85 9.16 8.20
Intel Corp. 11.08 17.39 15.50 20.45 14.08 —
Lam Research Corp. 25.87 9.83 10.36 11.51 9.72 15.85
Micron Technology Inc. 2,354.03 14.33 5.37 17.38 — 21.31
NVIDIA Corp. 41.64 27.83 47.75 37.50 12.85 —
Qualcomm Inc. 30.89 14.91 22.53 14.89 12.58 18.64
Texas Instruments Inc. 27.67 20.75 16.49 21.57 18.62 —
EV/FCFF, Sector
Technology Hardware & Equipment 22.21 17.41 15.25 17.37 13.52 —
EV/FCFF, Industry
Technology 25.34 21.26 19.17 19.36 15.65 —

Based on: 10-K (filing date: 2020-12-18), 10-K (filing date: 2019-12-20), 10-K (filing date: 2018-12-21), 10-K (filing date: 2017-12-21), 10-K (filing date: 2016-12-23), 10-K (filing date: 2015-12-17).

1 See details »

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3 2020 Calculation
EV/FCFF = EV ÷ FCFF
= 210,185 ÷ 12,722 = 16.52

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Broadcom Inc.’s EV/FCFF ratio increased from 2018 to 2019 and from 2019 to 2020.