Broadcom Limited designs, develops and supplies a broad range of analog and digital semiconductor connectivity solutions, including wired infrastructure, wireless communications, enterprise storage and industrial & others. The Company's products are used in data center networking, home connectivity, broadband access, telecommunications equipment, smartphones and base stations.
AVGO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for AVGO, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Broadcom Inc ranked in the 85th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 696% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Broadcom Inc, consider:
Broadcom Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than just 0% of US stocks with positive free cash flow.
The weighted average cost of capital for the company is 8. This value is greater than merely 11.95% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BELFA, LYTS, AMD, DAVA, and TRT can be thought of as valuation peers to AVGO, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.