Broadcom Inc. (AVGO) DCF Valuation
Transparent DCF models put Broadcom Inc. (AVGO)'s fair value in a range of $59.36 – $197.83 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $377.65 sits above that range — by these conservative assumptions it looks richly valued; the reverse-DCF below is the better lens for a high-growth name.
Reverse DCF: at today's $377.65, the market is pricing in roughly +28.6%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of +20.7%. The price is betting on acceleration above its track record.
Current Price
$377.65
Fair-Value Range
$59.36 – $197.83
Market-Implied Growth
+28.6%/yr
vs +20.7% 5Y actual
AVGO DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $20.1B · 4.72B shares · net debt $49.0B
Estimated Fair Value
$59.36
-84.3% vs $377.65
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $377.65; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $76.28 | $80.73 | $85.98 | $92.28 | $99.98 |
| 9.0% | $64.06 | $67.10 | $70.60 | $74.69 | $79.52 |
| 10.0% | $54.75 | $56.91 | $59.36 | $62.15 | $65.38 |
| 11.0% | $47.43 | $49.01 | $50.78 | $52.77 | $55.03 |
| 12.0% | $41.53 | $42.72 | $44.03 | $45.49 | $47.13 |
About Broadcom Inc.
Broadcom Inc. is a prominent global technology enterprise focused on the innovation, development, and supply of advanced semiconductor solutions and critical infrastructure software. The company's headquarters are situated in San Jose, California, and it maintains a significant team of 19,000 full-time staff. Its operations are segmented into four primary divisions: Wired Infrastructure, Wireless Communications, Enterprise Storage, and Industrial & Other. Broadcom’s diverse product range is integrated into numerous end-user technologies, including enterprise and data center networking, residential internet solutions, digital television receivers, telecommunications apparatus, mobile phones, data center servers and storage architectures, industrial automation, alternative and power generation systems, and electronic display technologies. The company's product offerings extend from fundamental discrete components to intricate sub-systems incorporating various device categories. This also encompasses specialized firmware designed to facilitate interaction between analog and digital systems, alongside mechanical hardware engineered to connect with optoelectronic or capacitive sensing technologies.
- Sector
- Technology
- Industry
- Semiconductors
- CEO
- Hock E. Tan