The equity value of Broadcom has traded at 14x-25x free cash flow since 2010. Wireless communications generate 31% of revenues, while enterprise storage and industrial/other generate 16% and 5%, respectively.While much of the high growth in revenue and profits stems from M&A activity, analysis indicates that organic sales growth has outpaced the semiconductor industry over the past few years.
This copy is for your personal, non-commercial use only. CA has limited use for cash flow in its core business, so recent years have seen several acquisitions. Broadcom currently generates $15/share in free cash flow, and CA adds about $2/share to achieve $17/share. Total sales to Key competitors include Intel, NXP, Marvell, and Mediatek. The increased number of high-profile patent suits is indicative of strong rivalry.
About 80 percent of mobile traffic happens over Wi-Fi. Chapter 1, to describe Bluetooth Modules product scope, market overview, market opportunities, market driving force and market risks. Assuming Broadcom can achieve the 20th percentile of major competitors and trade at an 18x FCF multiple, a $360 price target over the next several years is achievable. Broadcom is buying cash flow in an expanded technology space with room for add-on growth. Broadcom currently has about 21,000 U.S. and other patents. The statistic depicts Broadcom's market share in the global semiconductor industry from 2010 to 2019. Show source Another key risk is competition around 5G network buildout. CA acquired Rally Software in 2015 for $480 million to gain a cloud-based Agile development platform. Network tracking firm ABI Research indicates that since the first quarter of 2015 to the end of 2017, Broadcom’s market share in Wi-Fi has dipped from … Barron’s scans the world’s major publications each day to find news that helps financial advisors serve their clients better.
The recent $200 billion tariff threat for August 2018 targets China’s manufacturing export industries, which may impact the chip makers who outsource manufacturing to China, such as Nvidia, AMD, and Broadcom. Over the past 3 years, CA has paid out 70% of FCF in dividends (57%) and share buybacks (43%). New networking technologies, especially those in 5G, and the expansion of connected and intelligent solutions require a high investment in new networks that will be denser and more complex. Overview and forecasts on trending topicsIndustry insights and forecastsKey figures and rankings about companiesConsumer insights and preferences in various industriesDetailed information about political and social topicsAll key figures about regions and countriesEverything you need to know about Consumer GoodsIdentify market potentials of the digital futureKey economic and social indicatorsInsights into the world's most important technology marketsFigures and insights about the advertising and media worldEverything you need to know about the industry developmentFind studies from all around the internetKey company figures at a glanceData sets for your business plan Find the latest Broadcom Inc. (AVGO) stock quote, history, news and other vital information to help you with your stock trading and investing.
For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. In 2019, Broadcom's market share was 3.7 percent. I believe Broadcom will perform well from the current valuation discount on cash flows.Across the four business segments, Broadcom competes most broadly in its largest segment, wired infrastructure. Semiconductor industry sales worldwide 1987-2021Semiconductor sales - top companies 2014-2019Major countries in silicon production 2014-2019Forecast revenue growth rate global semiconductor industry 1988-2021You can only download this statistic as a Premium user.You can only download this statistic as a Premium user.You can only download this statistic as a Premium user.As a Premium user you get access to the detailed source references and background information about this statistic.As a Premium user you get access to background information and details about the release of this statistic.As soon as this statistic is updated, you will immediately be notified via e-mail....and make my research life easier.
Additional semiconductor tuck-in acquisitions might be feasible, but anti-trust concerns loom over patent concentration in the chip arena. Investors are selling Broadcom in disapproval of the strategy surprise, yet the intrinsic value of Broadcom is likely much higher in the next several years.An error has occurred, please try again later.Copyright ©2020 Dow Jones & Company, Inc. All Rights ReservedThis copy is for your personal, non-commercial use only.