Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Broadcom Inc. (AVGO)

Company Dividend Discount ModelIndustry: SemiconductorsSector: Technology

Valuation Snapshot

Stable Growth$70.59 - $128.15$94.53
Multi-Stage$57.35 - $62.44$59.85
Blended Fair Value$77.19
Current Price$362.55
Upside-78.71%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS15.02%39.20%2.302.021.581.451.281.140.870.620.340.15
YoY Growth--13.53%28.37%8.72%13.20%12.25%30.67%41.26%81.37%120.40%83.82%
Dividend Yield--0.63%0.93%1.87%2.49%2.18%2.44%2.86%2.27%1.37%0.77%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)23,126.00
(-) Cash Dividends Paid (M)11,142.00
(=) Cash Retained (M)11,984.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)4,625.202,890.751,734.45
Cash Retained (M)11,984.0011,984.0011,984.00
(-) Cash Required (M)-4,625.20-2,890.75-1,734.45
(=) Excess Retained (M)7,358.809,093.2510,249.55
(/) Shares Outstanding (M)4,852.754,852.754,852.75
(=) Excess Retained per Share1.521.872.11
LTM Dividend per Share2.302.302.30
(+) Excess Retained per Share1.521.872.11
(=) Adjusted Dividend3.814.174.41
WACC / Discount Rate11.20%11.20%11.20%
Growth Rate5.50%6.50%7.50%
Fair Value$70.59$94.53$128.15
Upside / Downside-80.53%-73.93%-64.65%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)23,126.0024,629.1926,230.0927,935.0429,750.8231,684.6232,635.16
Payout Ratio48.18%56.54%64.91%73.27%81.64%90.00%92.50%
Projected Dividends (M)11,142.0013,926.2417,025.3520,468.5124,287.3528,516.1630,187.53

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate11.20%11.20%11.20%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)12,406.2412,523.8412,641.43
Year 2 PV (M)13,511.6713,769.0314,028.82
Year 3 PV (M)14,471.2414,886.6615,309.95
Year 4 PV (M)15,297.0015,885.2816,490.37
Year 5 PV (M)16,000.1416,772.9517,575.34
PV of Terminal Value (M)206,614.67216,594.23226,955.74
Equity Value (M)278,300.97290,432.00303,001.66
Shares Outstanding (M)4,852.754,852.754,852.75
Fair Value$57.35$59.85$62.44
Upside / Downside-84.18%-83.49%-82.78%

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