Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Broadcom Inc., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2025-11-02), 10-K (reporting date: 2024-11-03), 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).
- Net Cash Provided by Operating Activities
- The net cash provided by operating activities exhibited a consistent upward trend over the analyzed periods. Beginning at 12,061 million USD in 2020, this figure increased annually to reach 27,537 million USD by 2025. The growth demonstrates a steady enhancement in the company's core operational cash generation ability, which could indicate improved operational efficiency or higher revenue generation. The most notable increase occurred between 2024 and 2025, suggesting a significant positive development in operating cash flow during this interval.
- Free Cash Flow to Equity (FCFE)
- The FCFE showed considerable variability across the periods under examination. It started at 19,301 million USD in 2020, declined sharply to 11,730 million USD in 2021, then rebounded to 15,886 million USD in 2022 and continued to rise moderately to 17,230 million USD in 2023. A pronounced surge occurred in 2024 when FCFE more than doubled to 39,760 million USD, followed by a decrease to 24,102 million USD in 2025. This volatility suggests fluctuations in the company's free cash available to equity shareholders, possibly due to changes in capital spending, debt repayments, or other financing activities impacting the equity cash flow.
- Overall Insights
- While operating cash flow steadily increased each year, the free cash flow to equity did not follow a linear progression, indicating some variability in how the company managed its financing and investment activities. The substantial spike in FCFE during 2024 implies an exceptional event or change in financial strategy positively impacting free cash available to shareholders in that year, though this was not sustained in the following year. The data suggest a generally strong operational cash base with some fluctuations in distributable cash flow to equity, which warrants further investigation to understand underlying causes.
Price to FCFE Ratio, Current
Broadcom Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 4,741,273,799 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 24,102) |
| FCFE per share | 5.08 |
| Current share price (P) | 329.88 |
| Valuation Ratio | |
| P/FCFE | 64.89 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Advanced Micro Devices Inc. | 197.78 |
| Analog Devices Inc. | 25.27 |
| Applied Materials Inc. | 33.56 |
| Intel Corp. | — |
| KLA Corp. | 53.69 |
| Lam Research Corp. | 42.16 |
| Micron Technology Inc. | 189.14 |
| NVIDIA Corp. | 71.00 |
| Qualcomm Inc. | 14.40 |
| Texas Instruments Inc. | 41.28 |
| P/FCFE, Sector | |
| Semiconductors & Semiconductor Equipment | 89.48 |
| P/FCFE, Industry | |
| Information Technology | 51.09 |
Based on: 10-K (reporting date: 2025-11-02).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Broadcom Inc., historical P/FCFE calculation, comparison to benchmarks
| Nov 2, 2025 | Nov 3, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 4,741,273,799 | 4,687,356,156 | 4,681,405,690 | 4,178,861,400 | 4,128,739,680 | 4,067,131,180 | |
| Selected Financial Data (US$) | |||||||
| Free cash flow to equity (FCFE) (in millions)2 | 24,102) | 39,760) | 17,230) | 15,886) | 11,730) | 19,301) | |
| FCFE per share3 | 5.08 | 8.48 | 3.68 | 3.80 | 2.84 | 4.75 | |
| Share price1, 4 | 329.88 | 220.79 | 110.65 | 55.59 | 63.50 | 43.46 | |
| Valuation Ratio | |||||||
| P/FCFE5 | 64.89 | 26.03 | 30.06 | 14.62 | 22.35 | 9.16 | |
| Benchmarks | |||||||
| P/FCFE, Competitors6 | |||||||
| Advanced Micro Devices Inc. | — | 109.67 | 241.70 | 33.46 | 44.72 | 133.51 | |
| Analog Devices Inc. | 23.16 | 29.30 | 22.28 | 24.14 | 34.67 | 33.98 | |
| Applied Materials Inc. | 34.31 | 17.05 | 17.53 | 19.17 | 27.20 | 23.21 | |
| Intel Corp. | — | — | — | — | 14.25 | 8.57 | |
| KLA Corp. | 40.35 | 25.11 | 26.78 | 9.01 | 28.05 | 19.15 | |
| Lam Research Corp. | 26.31 | 25.89 | 18.67 | 24.95 | 34.58 | 16.89 | |
| Micron Technology Inc. | 142.55 | — | — | 18.66 | 37.24 | 81.71 | |
| NVIDIA Corp. | 53.74 | 65.45 | 151.07 | 54.83 | 35.22 | 44.24 | |
| Qualcomm Inc. | 14.86 | 18.57 | 11.97 | 19.13 | 17.93 | 34.91 | |
| Texas Instruments Inc. | — | 42.96 | 37.61 | 23.88 | 21.87 | 24.10 | |
| P/FCFE, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 45.81 | 47.55 | 29.02 | 24.87 | 17.64 | |
| P/FCFE, Industry | |||||||
| Information Technology | — | 36.63 | 33.18 | 26.93 | 27.31 | 23.40 | |
Based on: 10-K (reporting date: 2025-11-02), 10-K (reporting date: 2024-11-03), 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).
1 Data adjusted for splits and stock dividends.
3 2025 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 24,102,000,000 ÷ 4,741,273,799 = 5.08
4 Closing price as at the filing date of Broadcom Inc. Annual Report.
5 2025 Calculation
P/FCFE = Share price ÷ FCFE per share
= 329.88 ÷ 5.08 = 64.89
6 Click competitor name to see calculations.
- Share Price
- The share price exhibited a significant upward trend over the analyzed periods. Starting from $43.46, it rose consistently, with notable accelerations between the years ending in 2023 and 2025. By the most recent period, the share price reached $329.88, indicating strong market appreciation and investor confidence.
- Free Cash Flow to Equity (FCFE) per Share
- FCFE per share showed variability across the periods. Initially, it decreased from $4.75 to $2.84 but then recovered to $3.8 before experiencing a slight decline to $3.68. A marked increase occurred by the year ending in 2024, reaching $8.48, followed by a decline to $5.08 in the final period. This pattern suggests fluctuating cash flow generation capacity with a peak in the penultimate year.
- Price to Free Cash Flow to Equity (P/FCFE) Ratio
- The P/FCFE ratio demonstrated a generally increasing trend, with fluctuations reflecting shifts in valuation relative to cash flow. From a low of 9.16, the ratio rose sharply to 22.35, dropped to 14.62, then surged again to 30.06. Subsequent periods showed a slight decrease to 26.03 before a steep rise to 64.89. This indicates that share price gains at times outpaced FCFE growth, leading to higher market valuation multiples and potential expectations of future performance.
- Overall Analysis
- The data reflect a strong market valuation growth contrasted by more volatile free cash flow generation. While FCFE per share fluctuated, the share price consistently increased, particularly in later years. The sharp rises in the P/FCFE ratio suggest that investor optimism and expectations may be driving valuations beyond incremental cash flow improvements. This could imply an emphasis on growth prospects or other qualitative factors influencing the market's assessment.