Stock Analysis on Net
Stock Analysis on Net

Broadcom Inc. (NASDAQ:AVGO)

Price to FCFE (P/FCFE) 

Microsoft Excel

Free Cash Flow to Equity (FCFE)

Broadcom Inc., FCFE calculation

US$ in millions

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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
Purchases of property, plant and equipment (452) (424) (443) (463) (432) (635)
Proceeds from long-term borrowings — 1,935 9,904 27,802 28,793 —
Payments on debt obligations (403) (2,361) (11,495) (18,814) (16,800) (973)
Other borrowings, net — — — (1,285) 1,241 —
Free cash flow to equity (FCFE) 17,230 15,886 11,730 19,301 22,499 7,272

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).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Broadcom Inc. 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. FCFE increased from 2021 to 2022 and from 2022 to 2023.

Price to FCFE Ratio, Current

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

Microsoft Excel
No. shares of common stock outstanding 4,670,576,083
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 17,230
FCFE per share 3.69
Current share price (P) 163.25
Valuation Ratio
P/FCFE 44.25
Benchmarks
P/FCFE, Competitors1
Advanced Micro Devices Inc. 199.20
Analog Devices Inc. 25.95
Applied Materials Inc. 18.31
First Solar Inc. —
Intel Corp. —
KLA Corp. 21.91
Lam Research Corp. 22.54
Micron Technology Inc. —
NVIDIA Corp. 138.64
Qualcomm Inc. 16.56
Texas Instruments Inc. 46.97
P/FCFE, Sector
Semiconductors & Semiconductor Equipment 117.35
P/FCFE, Industry
Information Technology 51.66

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

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

Microsoft Excel
Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Nov 1, 2020 Nov 3, 2019 Nov 4, 2018
No. shares of common stock outstanding1 4,681,405,690 4,178,861,400 4,128,739,680 4,067,131,180 3,977,922,890 4,072,709,010
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 17,230 15,886 11,730 19,301 22,499 7,272
FCFE per share3 3.68 3.80 2.84 4.75 5.66 1.79
Share price1, 4 110.65 55.59 63.50 43.46 31.90 24.49
Valuation Ratio
P/FCFE5 30.06 14.62 22.35 9.16 5.64 13.72
Benchmarks
P/FCFE, Competitors6
Advanced Micro Devices Inc. 241.70 33.46 44.72 133.51 — —
Analog Devices Inc. 22.28 24.14 34.67 33.98 37.52 50.53
Applied Materials Inc. 17.53 19.17 27.20 23.21 19.53 10.21
First Solar Inc. — 61.91 — — — —
Intel Corp. — — 14.25 8.57 16.55 —
KLA Corp. 26.78 9.01 28.05 19.15 9.84 —
Lam Research Corp. 18.67 24.95 34.58 16.89 6.14 —
Micron Technology Inc. — 18.66 37.24 81.71 13.92 —
NVIDIA Corp. 151.07 54.83 35.22 44.24 30.15 —
Qualcomm Inc. 11.97 19.13 17.93 34.91 16.39 —
Texas Instruments Inc. 37.61 23.88 21.87 24.10 18.77 —
P/FCFE, Sector
Semiconductors & Semiconductor Equipment 48.29 29.17 25.08 17.87 14.27 —
P/FCFE, Industry
Information Technology 33.47 26.69 27.52 23.46 19.14 —

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 Data adjusted for splits and stock dividends.

2 See details »

3 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 17,230,000,000 ÷ 4,681,405,690 = 3.68

4 Closing price as at the filing date of Broadcom Inc. Annual Report.

5 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 110.65 ÷ 3.68 = 30.06

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Broadcom Inc. P/FCFE ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.