I am currently going through my Watch List to ensure that each company still deserves to be on the list. Because of the number of companies on my list, I am going to try to knock out 2 per weekday.
| Company name | Broadcom Corporation |
| Stock ticker | BRCM |
| Live stock price | [stckqut]BRCM[/stckqut] |
| P/E compared to competitors | Fair |
MANAGEMENT EXECUTION
| Employee productivity | Good |
| Sales growth | Fair |
| EPS growth | Good |
| P/E growth | Good |
| EBIT growth | Good |
ANALYSIS
| Confident Investor Rating | Good |
| Target stock price (TWCA growth scenario) | $47.45 |
| Target stock price (averages with growth) | $59.93 |
| Target stock price (averages with no growth) | $45.8 |
| Target stock price (manual assumptions) | $39.99 |
The following company description is from Google Finance: http://www.google.com/finance?q=brcm
Broadcom Corporation (Broadcom), is a global semiconductor solution for wired and wireless communications. Broadcom products seamlessly deliver voice, video, data and multimedia connectivity in the home, office and mobile environment. The Company provides system-on-a-chip (SoC), and software solutions. The Company’s segment includes Broadband Communications, Mobile and Wireless and Infrastructure and Networking. During the fiscal year ended December 31, 2012, operates its business to serve three markets: Broadband Communications, Mobile and Wireless and Infrastructure and Networking. In February 2012, the Company acquired NetLogic Microsystems, Inc. In April 2012, it acquired BroadLight, Inc. In March 2014, completed the acquisition of the 10/40/100Gb Ethernet controller-related assets from Broadcom.
Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Broadcom Corporation.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
Stock price at the time of the calculation: $30.63
Growth: 0.16
Current EPS (TTM): $0.73
P/E: 42
Future EPS Calc: $1.53
Future Stock Price Calc: $64.39
Target stock price: $39.98
I hope that this makes you a better investor. [/s2If]