Broadcom Inc’s Discounted Earnings model uses EPS without NRI of $6.82, a 10% discount rate and a ten-year 19.6% growth stage, followed by a ten-year 4% terminal growth. The growth stage value of 111.2 plus terminal stage value of 117.17 yields a $228.37 intrinsic value, versus a $319.55 trading price, equating to a -39.93% margin of safety.

Using trailing twelve-month Free Cash Flow per share, the traditional DCF model calculates an intrinsic value of $190.73, resulting in a -67.54% margin of safety compared with the current market price. This secondary valuation also indicates modest overvaluation under free cash flow assumptions.

The analysis applies a 10% discount rate derived from a 4% risk-free rate plus a 6% equity risk premium, capping growth rates between 5% and 20%. The disparity between EPS-based and FCF-based models highlights sensitivity to cash flow metrics and underscores potential downside if growth slows.