The wireless connectivity business is the most valuable segment for Broadcom in our view, accounting for 38% of its valuation and more than 40% of its revenue. The company is the number one player in connectivity with most of the high end smartphones using its wireless connectivity solutions. We forecast only a slight increase in Broadcom’s connectivity market share going forward. Our $46 valuation for Broadcom is at an approximate 10% discount to the current market price. If our estimate does not hold true, and Broadcom’s market share in connectivity solutions increases to 40% over the next 6-7 years, there will be a 10% increase in our valuation for the company. You can see the modified model and the resultant impact on key financial estimates here.

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