Ep. 301: AVGO to Potentially Acquire SYMC's Enterprise Business

Run rate revenue on March 2019 quarter Enterprise Revenue of $584 million implies $2.336 Billion run rate revenue for SYMC's Enterprise Business. -A 35% Op Margin applied to $2.3B revenue implies a 12x multiple at the $10B valuation reported by the WSJ. -A 40% Op Margin implies 11x. -A 45% Op Margin implies 10x. -A 50% Op Margin implies 9x. -These implied multiples are what one would expect for a slow-growth to flat topline business. -The Enterprise Business is a flat-ish topline business (run rate revenue flat with FY19 reported revenue of $2.3B). Should AVGO wish to grow this business expanding Op Margin beyond 35% would make growing the topline difficult.