Stock Analysis on Net
Stock Analysis on Net

Broadcom Inc. (NASDAQ:AVGO)

Enterprise Value to EBITDA (EV/EBITDA)

Microsoft Excel

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Broadcom Inc., EBITDA calculation

US$ in millions

Microsoft Excel
12 months ended: Nov 3, 2024 Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Nov 1, 2020 Nov 3, 2019
Net income 5,895 14,082 11,495 6,736 2,960 2,724
Less: Loss from discontinued operations, net of income taxes (273) — — — (1) (12)
Add: Income tax expense 3,748 1,015 939 29 (518) (510)
Earnings before tax (EBT) 9,916 15,097 12,434 6,765 2,443 2,226
Add: Interest expense 3,953 1,622 1,737 1,885 1,777 1,444
Earnings before interest and tax (EBIT) 13,869 16,719 14,171 8,650 4,220 3,670
Add: Amortization of intangible and right-of-use assets 9,417 3,333 4,455 5,502 6,335 5,239
Add: Depreciation 593 502 529 539 570 569
Earnings before interest, tax, depreciation and amortization (EBITDA) 23,879 20,554 19,155 14,691 11,125 9,478

Based on: 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), 10-K (reporting date: 2019-11-03).

Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. Broadcom Inc. EBITDA increased from 2022 to 2023 and from 2023 to 2024.

Enterprise Value to EBITDA Ratio, Current

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

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 1,025,454
Earnings before interest, tax, depreciation and amortization (EBITDA) 23,879
Valuation Ratio
EV/EBITDA 42.94
Benchmarks
EV/EBITDA, Competitors1
Advanced Micro Devices Inc. 46.01
Analog Devices Inc. 26.02
Applied Materials Inc. 15.86
Intel Corp. 10.12
KLA Corp. 24.98
Lam Research Corp. 19.54
Micron Technology Inc. 10.91
Monolithic Power Systems Inc. 53.19
NVIDIA Corp. 84.68
Qualcomm Inc. 15.08
Texas Instruments Inc. 18.55
EV/EBITDA, Sector
Semiconductors & Semiconductor Equipment 59.36
EV/EBITDA, Industry
Information Technology 36.20

Based on: 10-K (reporting date: 2024-11-03).

1 Click competitor name to see calculations.

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

Enterprise Value to EBITDA Ratio, Historical

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

Microsoft Excel
Nov 3, 2024 Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Nov 1, 2020 Nov 3, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 1,093,139 543,038 259,402 289,742 210,202 154,639
Earnings before interest, tax, depreciation and amortization (EBITDA)2 23,879 20,554 19,155 14,691 11,125 9,478
Valuation Ratio
EV/EBITDA3 45.78 26.42 13.54 19.72 18.89 16.32
Benchmarks
EV/EBITDA, Competitors4
Advanced Micro Devices Inc. — 65.81 22.63 34.19 62.10 82.59
Analog Devices Inc. 27.10 15.56 16.23 38.55 23.61 18.67
Applied Materials Inc. 15.31 15.75 11.04 17.54 16.82 14.60
Intel Corp. — 18.96 6.20 6.02 6.40 8.73
KLA Corp. 24.77 15.67 14.97 19.26 18.10 14.14
Lam Research Corp. 20.93 15.36 11.36 16.94 18.35 10.69
Micron Technology Inc. 12.40 32.38 3.26 6.05 6.46 3.90
Monolithic Power Systems Inc. — 62.08 39.34 68.91 90.99 51.73
NVIDIA Corp. 46.95 95.69 57.58 58.98 52.92 21.08
Qualcomm Inc. 15.19 12.82 7.84 12.76 19.49 10.55
Texas Instruments Inc. — 16.36 14.69 15.54 21.75 17.73
EV/EBITDA, Sector
Semiconductors & Semiconductor Equipment — 26.77 14.62 15.67 14.89 —
EV/EBITDA, Industry
Information Technology — 23.49 18.19 20.35 19.58 —

Based on: 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), 10-K (reporting date: 2019-11-03).

1 See details »

2 See details »

3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= 1,093,139 ÷ 23,879 = 45.78

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/EBITDA Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. Broadcom Inc. EV/EBITDA ratio increased from 2022 to 2023 and from 2023 to 2024.