Broadcom Inc. (AVGO)

Price to FCFE (P/FCFE)

Difficulty: Intermediate

Broadcom Inc., FCFE calculation

USD $ in millions

	12 months ended	Oct 29, 2017	Oct 30, 2016	Nov 1, 2015	Nov 2, 2014	Nov 3, 2013	Oct 28, 2012
	Net income (loss) attributable to ordinary shares
	Net (income) loss attributable to noncontrolling interest
	Net noncash charges
	Changes in assets and liabilities, net of acquisitions and disposals
	Net cash provided by operating activities
	Purchases of property, plant and equipment
	Proceeds from disposals of property, plant and equipment
	Proceeds from issuance of long-term debt
	Proceeds from issuance of convertible senior notes
	Repayment of debt
	Payment of assumed debt
	Payment of debt issuance costs
	Payment of capital lease obligations
	Free cash flow to equity (FCFE)

Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to Broadcom Inc.'s equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	Broadcom Inc.'s FCFE increased from 2015 to 2016 but then slightly declined from 2016 to 2017.

Broadcom Inc., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding
Selected Financial Data (USD $)
Free cash flow to equity (FCFE) (in millions)
FCFE per share
Current share price (P)
Ratio
P/FCFE
Benchmarks
P/FCFE, Competitors
Apple Inc.
Applied Materials Inc.
Cisco Systems Inc.
HP Inc.
Intel Corp.
NVIDIA Corp.
Qualcomm Inc.
Texas Instruments Inc.
P/FCFE, Sector
Technology Hardware & Equipment
P/FCFE, Industry
Technology

If company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.

Otherwise, if company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Broadcom Inc., historical P/FCFE calculation, comparison to benchmarks

		Oct 29, 2017	Oct 30, 2016	Nov 1, 2015	Nov 2, 2014	Nov 3, 2013	Oct 28, 2012
	No. shares of common stock outstanding¹
	Selected Financial Data (USD $)
	Free cash flow to equity (FCFE) (in millions)²
	FCFE per share⁴
	Share price^1, 3
	Ratio
	P/FCFE⁵
	Benchmarks
	P/FCFE, Competitors
	Apple Inc.
	Applied Materials Inc.
	Cisco Systems Inc.
	HP Inc.
	Intel Corp.
	NVIDIA Corp.
	Qualcomm Inc.
	Texas Instruments Inc.
	P/FCFE, Sector
	Technology Hardware & Equipment
	P/FCFE, Industry
	Technology

¹ Data adjusted for splits and stock dividends.

³ Close price on the filing date of Broadcom Inc.'s Annual Report.

2017 Calculations

⁴ FCFE per share = FCFE ÷ No. shares of common stock outstanding
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⁵ P/FCFE = Share price ÷ FCFE per share
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Ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders' equity.	Broadcom Inc.'s P/FCFE ratio declined from 2015 to 2016 but then slightly increased from 2016 to 2017.

	Broadcom Inc.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

	All companies
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality