By Johnny Hopkins
Publication Date: 2025-12-19 02:33:00
Each week we run a DCF (Discounted Cash Flow) model on a company from our watchlist. This week’s pick: Broadcom Inc. (AVGO).
Profile
Broadcom is one of the world’s leading semiconductor and infrastructure software companies, with dominant positions across custom AI accelerators, networking chips, wireless components, and mainframe software. The company benefits from deep integration with hyperscalers, telecom operators, and enterprise customers. Broadcom’s portfolio spans high-margin chipsets, mission-critical infrastructure software, and recently expanded cloud and virtualization capabilities through VMware. Its combination of scale, recurring software revenue, and exposure to surging AI accelerator demand reinforces one of the most durable competitive moats in the industry.
DCF Analysis
Inputs:
Discount Rate: 10%
Terminal Growth Rate: 3%
WACC: 10%
Forecasted Free Cash Flows (in billions USD)
2025: $28.0 → PV: $25.5
2026: $30.0 → PV: $25.8
2027: $32.0 → PV:…
