DCF Valuation
Base-case fair value
$243.05
Intrinsic $324.06 · 25% MOS
Current price: $411.35
Base-case summary
Our base-case DCF for Broadcom Inc. (AVGO) projects 10 years of free cash flow growth at 19.7% for years 1–5 and 9.9% for years 6–10, anchored to 19.7% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $32.8B in trailing free cash flow, this produces an intrinsic value of $324.06 per share. A 25% safety margin gives a fair value of $243.05, suggesting the stock is currently 41% overvalued against the $411.35 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$32.8B
Cash & equivalents
$19.6B
Total debt
$64.9B
Shares outstanding
4.9B