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Barchart
Barchart
Mark R. Hake, CFA

Broadcom Looks Deeply Undervalued Based on its Strong Free Cash Flow

Broadcom AVGO Barchart

Broadcom Inc. (AVGO) stock still looks very cheap today, based on its free cash flow (FCF) and related FCF margins. As a result, AVGO The stock could be worth over 22% more at $1,626 per share. This is a result of projecting next year's FCF using its existing FCF margins and applying a 3% FCF yield metric.

I discussed this in my last Barchart article on March 31, “Broadcom's Free Cash Flow Could Value AVGO Stock 21% Higher - Good for Short-Put Investors.” At the time, AVGO stock was at $1,325.41, and on Friday, May 10, AVGO closed at $1,332.80.

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