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 3, 2019 Nov 4, 2018 Oct 29, 2017 Oct 30, 2016 Nov 1, 2015 Nov 2, 2014
Net income (loss) attributable to Broadcom Inc. stockholders 2,724  12,259  1,692  (1,739) 1,364  263 
Net (income) loss attributable to noncontrolling interest —  351  92  (122) —  — 
Net noncash charges 7,157  (2,774) 5,753  4,789  990  661 
Changes in assets and liabilities, net of acquisitions and disposals (184) (956) (986) 483  (36) 251 
Net cash provided by operating activities 9,697  8,880  6,551  3,411  2,318  1,175 
Cash paid for interest, net of tax1 1,017  432  304  372  163  71 
Purchases of property, plant and equipment (432) (635) (1,069) (723) (593) (409)
Proceeds from disposals of property, plant and equipment 88  239  441  5  110  — 
Free cash flow to the firm (FCFF) 10,370  8,916  6,227  3,065  1,998  837 

Based on: 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), 10-K (filing date: 2014-12-29).

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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 2017 to 2018 and from 2018 to 2019.

Interest Paid, Net of Tax

Broadcom Inc., interest paid, net of tax calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Nov 3, 2019 Nov 4, 2018 Oct 29, 2017 Oct 30, 2016 Nov 1, 2015 Nov 2, 2014
Effective Income Tax Rate (EITR)
EITR1 21.00% 21.00% 1.90% 17.00% 5.20% 9.60%
Interest Paid, Net of Tax
Cash paid for interest, before tax 1,287  547  310  448  172  78 
Less: Cash paid for interest, tax2 270  115  6  76  9  7 
Cash paid for interest, net of tax 1,017  432  304  372  163  71 

Based on: 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), 10-K (filing date: 2014-12-29).

1 See details »

2 2019 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 1,287 × 21.00% = 270

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) 185,834 
Free cash flow to the firm (FCFF) 10,370 
Valuation Ratio
EV/FCFF 17.92
Benchmarks
EV/FCFF, Competitors1
Advanced Micro Devices Inc. 308.20
Analog Devices Inc. 26.95
Apple Inc. 26.26
Applied Materials Inc. 25.37
Cisco Systems Inc. 10.75
Intel Corp. 11.75
Lam Research Corp. 30.60
Micron Technology Inc. 2,849.77
NVIDIA Corp. 73.75
Qualcomm Inc. 34.40
Texas Instruments Inc. 24.43
EV/FCFF, Sector
Technology Hardware & Equipment 26.57
EV/FCFF, Industry
Technology 30.34

Based on: 10-K (filing date: 2019-12-20).

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 3, 2019 Nov 4, 2018 Oct 29, 2017 Oct 30, 2016 Nov 1, 2015 Nov 2, 2014
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 154,639  112,946  116,306  86,119  40,968  29,768 
Free cash flow to the firm (FCFF)2 10,370  8,916  6,227  3,065  1,998  837 
Valuation Ratio
EV/FCFF3 14.91 12.67 18.68 28.10 20.50 35.59
Benchmarks
EV/FCFF, Competitors4
Advanced Micro Devices Inc. 169.58 — 770.71 121.45 — —
Analog Devices Inc. 21.68 16.04 36.93 16.91 21.52 —
Apple Inc. 18.01 15.09 17.59 11.77 9.77 —
Applied Materials Inc. 18.91 9.96 15.58 15.02 20.88 17.35
Cisco Systems Inc. 12.56 14.32 8.85 9.16 8.20 —
Intel Corp. 17.38 15.50 20.45 14.08 11.01 —
Lam Research Corp. 9.83 10.36 11.51 9.72 15.85 —
Micron Technology Inc. 14.33 5.37 17.38 — 21.31 —
NVIDIA Corp. 27.83 47.75 37.50 12.85 11.58 —
Qualcomm Inc. 14.91 22.53 14.89 12.58 18.64 —
Texas Instruments Inc. 20.75 16.49 21.57 18.62 14.16 —
EV/FCFF, Sector
Technology Hardware & Equipment 17.41 15.25 17.37 13.52 10.86 —
EV/FCFF, Industry
Technology 21.26 19.17 19.36 15.65 14.15 —

Based on: 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), 10-K (filing date: 2014-12-29).

1 See details »

2 See details »

3 2019 Calculation
EV/FCFF = EV ÷ FCFF
= 154,639 ÷ 10,370 = 14.91

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 decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.