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Broadcom (NEOE:AVGO) Cyclically Adjusted Price-to-FCF : 56.72 (As of Jun. 10, 2024)


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What is Broadcom Cyclically Adjusted Price-to-FCF?

As of today (2024-06-10), Broadcom's current share price is C$34.03. Broadcom's Cyclically Adjusted FCF per Share for the quarter that ended in Jan. 2024 was C$0.60. Broadcom's Cyclically Adjusted Price-to-FCF for today is 56.72.

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

NEOE:AVGO' 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.

NEOE:AVGO's Cyclically Adjusted Price-to-FCF is ranked worse than
63.48% of 345 companies
in the Semiconductors industry
Industry Median: 40.29 vs NEOE:AVGO: 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 C$13.489. 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 C$0.60 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
=34.03/0.6
=56.72

* 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)
=13.489/130.1244*130.1244
=13.489

Current CPI (Jan. 2024) = 130.1244.

Broadcom Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201404 0.758 100.023 0.986
201407 0.933 100.520 1.208
201410 0.789 100.176 1.025
201501 1.391 98.604 1.836
201504 2.111 99.824 2.752
201507 1.990 100.691 2.572
201510 2.254 100.346 2.923
201601 1.642 99.957 2.138
201604 1.433 100.947 1.847
201607 2.277 101.524 2.918
201610 3.639 101.988 4.643
201701 3.087 102.456 3.921
201704 4.034 103.167 5.088
201707 3.995 103.278 5.033
201710 5.294 104.070 6.619
201801 4.274 104.578 5.318
201804 6.036 105.708 7.430
201807 6.334 106.324 7.752
201810 7.660 106.695 9.342
201901 6.453 106.200 7.907
201904 8.059 107.818 9.726
201907 7.233 108.250 8.695
201910 7.480 108.577 8.964
202001 6.883 108.841 8.229
202004 10.300 108.173 12.390
202007 9.804 109.318 11.670
202010 10.094 109.861 11.956
202101 8.894 110.364 10.486
202104 10.002 112.673 11.551
202107 9.981 115.183 11.276
202110 10.084 116.696 11.244
202201 9.959 118.619 10.925
202204 12.384 121.978 13.211
202207 12.960 125.002 13.491
202210 14.822 125.734 15.340
202301 12.305 126.223 12.685
202304 13.831 127.992 14.061
202307 14.223 128.974 14.350
202310 15.167 129.810 15.204
202401 13.489 130.124 13.489

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  (NEOE:AVGO) 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 (NEOE:AVGO) 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.

Broadcom (NEOE:AVGO) Headlines