Broadcom Inc., FCFF calculation

US$ in millions

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)
Net income attributable to noncontrolling interest	—)	—)	—)	—)	—)	351)
Net noncash charges	5,646)	6,895)	7,155)	8,008)	7,157)	(2,774)
Changes in assets and liabilities, net of acquisitions and disposals	(1,643)	(1,654)	(127)	1,093)	(184)	(956)
Net cash provided by operating activities	18,085)	16,736)	13,764)	12,061)	9,697)	8,880)
Cash paid for interest, net of tax¹	1,402)	1,282)	1,559)	1,112)	1,017)	432)
Purchases of property, plant and equipment	(452)	(424)	(443)	(463)	(432)	(635)
Free cash flow to the firm (FCFF)	19,035)	17,594)	14,880)	12,710)	10,282)	8,677)

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).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Broadcom Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Broadcom Inc. FCFF increased from 2021 to 2022 and from 2022 to 2023.

Broadcom Inc., interest paid, net of tax calculation

US$ in millions

12 months ended:	Oct 29, 2023	Oct 30, 2022	Oct 31, 2021	Nov 1, 2020	Nov 3, 2019	Nov 4, 2018
Effective Income Tax Rate (EITR)
EITR¹	6.70%	7.50%	0.40%	21.00%	21.00%	21.00%
Interest Paid, Net of Tax
Cash paid for interest, before tax	1,503)	1,386)	1,565)	1,408)	1,287)	547)
Less: Cash paid for interest, tax²	101)	104)	6)	296)	270)	115)
Cash paid for interest, net of tax	1,402)	1,282)	1,559)	1,112)	1,017)	432)

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 2023 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 1,503 × 6.70% = 101

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

Selected Financial Data (US$ in millions)
Enterprise value (EV)	619,438)
Free cash flow to the firm (FCFF)	19,035)
Valuation Ratio
EV/FCFF	32.54
Benchmarks
EV/FCFF, Competitors¹
Advanced Micro Devices Inc.	206.81
Analog Devices Inc.	26.68
Applied Materials Inc.	21.50
Intel Corp.	—
KLA Corp.	26.01
Lam Research Corp.	24.78
Micron Technology Inc.	—
NVIDIA Corp.	76.52
ON Semiconductor Corp.	56.27
Qualcomm Inc.	17.07
Texas Instruments Inc.	94.01
EV/FCFF, Sector
Semiconductors & Semiconductor Equipment	106.30
EV/FCFF, Industry
Information Technology	42.27

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

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.

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

	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)
Free cash flow to the firm (FCFF)²	19,035)	17,594)	14,880)	12,710)	10,282)	8,677)
Valuation Ratio
EV/FCFF³	28.53	14.74	19.47	16.54	15.04	13.02
Benchmarks
EV/FCFF, Competitors⁴
Advanced Micro Devices Inc.	225.41	38.82	43.41	126.98	169.58	—
Analog Devices Inc.	25.61	23.12	39.16	27.12	21.68	16.04
Applied Materials Inc.	17.40	19.06	26.22	22.52	18.91	9.96
Intel Corp.	—	—	16.94	11.08	17.39	—
KLA Corp.	19.99	19.05	26.29	18.70	20.92	14.15
Lam Research Corp.	17.99	24.03	24.02	25.91	9.83	10.36
Micron Technology Inc.	—	18.28	33.81	292.39	14.33	5.37
NVIDIA Corp.	142.90	78.07	69.47	41.65	27.92	—
ON Semiconductor Corp.	67.36	20.67	19.86	33.03	46.88	—
Qualcomm Inc.	11.61	18.18	17.47	30.89	14.91	22.53
Texas Instruments Inc.	90.39	27.05	24.23	27.67	20.75	—
EV/FCFF, Sector
Semiconductors & Semiconductor Equipment	61.21	34.74	26.16	22.06	18.29	—
EV/FCFF, Industry
Information Technology	34.25	27.01	27.93	24.12	19.69	—

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/FCFF = EV ÷ FCFF
= 543,033 ÷ 19,035 = 28.53

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Broadcom Inc. EV/FCFF ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Broadcom Inc. (NASDAQ:AVGO)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical