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Broadcom (BSP:AVGO34) Cyclically Adjusted Price-to-FCF : 61.93 (As of Jun. 09, 2024)


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What is Broadcom Cyclically Adjusted Price-to-FCF?

As of today (2024-06-09), Broadcom's current share price is R$107.76. Broadcom's Cyclically Adjusted FCF per Share for the quarter that ended in Jan. 2024 was R$1.74. Broadcom's Cyclically Adjusted Price-to-FCF for today is 61.93.

The historical rank and industry rank for Broadcom's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

BSP:AVGO34' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 22.25   Med: 38.74   Max: 66.44
Current: 57.09

During the past years, Broadcom's highest Cyclically Adjusted Price-to-FCF was 66.44. The lowest was 22.25. And the median was 38.74.

BSP:AVGO34's Cyclically Adjusted Price-to-FCF is ranked worse than
63.19% of 345 companies
in the Semiconductors industry
Industry Median: 40.14 vs BSP:AVGO34: 57.09

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Broadcom's adjusted free cash flow per share data for the three months ended in Jan. 2024 was R$0.706. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is R$1.74 for the trailing ten years ended in Jan. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Broadcom Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Broadcom's Cyclically Adjusted Price-to-FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Broadcom Cyclically Adjusted Price-to-FCF Chart

Broadcom Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 36.12 32.49 37.13 24.57 35.55

Broadcom Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 29.16 29.42 39.95 35.55 47.89

Competitive Comparison of Broadcom's Cyclically Adjusted Price-to-FCF

For the Semiconductors subindustry, Broadcom's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Broadcom's Cyclically Adjusted Price-to-FCF Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Broadcom's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Broadcom's Cyclically Adjusted Price-to-FCF falls into.



Broadcom Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Broadcom's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=107.76/1.74
=61.93

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Broadcom's Cyclically Adjusted FCF per Share for the quarter that ended in Jan. 2024 is calculated as:

For example, Broadcom's adjusted Free Cash Flow per Share data for the three months ended in Jan. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Jan. 2024 (Change)*Current CPI (Jan. 2024)
=0.706/130.1244*130.1244
=0.706

Current CPI (Jan. 2024) = 130.1244.

Broadcom Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201404 0.022 100.023 0.029
201407 0.028 100.520 0.036
201410 0.025 100.176 0.032
201501 0.043 98.604 0.057
201504 0.074 99.824 0.096
201507 0.071 100.691 0.092
201510 0.095 100.346 0.123
201601 0.067 99.957 0.087
201604 0.057 100.947 0.073
201607 0.082 101.524 0.105
201610 0.125 101.988 0.159
201701 0.107 102.456 0.136
201704 0.135 103.167 0.170
201707 0.144 103.278 0.181
201710 0.192 104.070 0.240
201801 0.158 104.578 0.197
201804 0.231 105.708 0.284
201807 0.263 106.324 0.322
201810 0.317 106.695 0.387
201901 0.259 106.200 0.317
201904 0.335 107.818 0.404
201907 0.298 108.250 0.358
201910 0.331 108.577 0.397
202001 0.312 108.841 0.373
202004 0.557 108.173 0.670
202007 0.547 109.318 0.651
202010 0.614 109.861 0.727
202101 0.536 110.364 0.632
202104 0.637 112.673 0.736
202107 0.587 115.183 0.663
202110 0.642 116.696 0.716
202201 0.623 118.619 0.683
202204 0.666 121.978 0.710
202207 0.768 125.002 0.799
202210 0.812 125.734 0.840
202301 0.680 126.223 0.701
202304 0.736 127.992 0.748
202307 0.738 128.974 0.745
202310 0.799 129.810 0.801
202401 0.706 130.124 0.706

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Broadcom  (BSP:AVGO34) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Broadcom Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Broadcom's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Broadcom (BSP:AVGO34) Business Description

Industry
Address
3421 Hillview Avenue, Palo Alto, CA, USA, 94304
Broadcom is the sixth-largest semiconductor company globally and has expanded into various software businesses, with over $30 billion in annual revenue. It sells 17 core semiconductor product lines across wireless, networking, broadband, storage, and industrial markets. It is primarily a fabless designer but holds some manufacturing in-house, like for its best-of-breed FBAR filters that sell into the Apple iPhone. In software, it sells virtualization, infrastructure, and security software to large enterprises, financial institutions, and governments.Broadcom is the product of consolidation. Its businesses are an amalgamation of former companies like legacy Broadcom and Avago Technologies in chips, as well as Brocade, CA Technologies, and Symantec in software.

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