(AVGO) Broadcom - Ratings and Ratios
Semiconductors, Ethernet Chips, Fiber Optics, Wi-Fi SoCs, RF Modules
AVGO EPS (Earnings per Share)
AVGO Revenue
| Risk via 10d forecast | |
|---|---|
| Volatility | 47.2% |
| Value at Risk 5%th | 67.1% |
| Reward | |
|---|---|
| Sharpe Ratio | 1.38 |
| Alpha | 82.24 |
| Character | |
|---|---|
| Hurst Exponent | 0.490 |
| Beta | 1.210 |
| Drawdowns 3y | |
|---|---|
| Max DD | 41.15% |
| Mean DD | 6.39% |
Description: AVGO Broadcom September 24, 2025
Broadcom Inc. (NASDAQ:AVGO) is a diversified semiconductor and infrastructure-software company that operates through two primary segments: Semiconductor Solutions and Infrastructure Software. The semiconductor side supplies a broad portfolio of custom silicon and component technologies-including Ethernet switching and routing ASICs, optical-copper PHYs, Wi-Fi/Bluetooth/GNSS SoCs, RF front-end modules, and a range of industrial and medical sensors-while the software side delivers networking-and-security platforms that complement its hardware offerings.
The firm’s products are embedded in high-growth end-markets such as data-center networking (especially AI-accelerated workloads), 5G and broadband access, smartphone connectivity, and factory automation. In fiscal 2023 Broadcom generated roughly $37 billion in revenue with an operating margin near 30 % and free cash flow exceeding $15 billion, underscoring the cash-generative nature of its mix of mature hardware and recurring-revenue software licenses. Key macro drivers include the ongoing global rollout of 5G, rising demand for AI-optimized networking gear, and the shift toward edge-computing architectures that rely on Broadcom’s high-performance interconnect solutions.
Assuming the company maintains its current product roadmap and that macro-economic conditions (e.g., semiconductor supply-chain stability and corporate cap-ex spending) stay broadly supportive, AVGO’s valuation appears anchored to a blend of steady dividend yields (~3 %) and growth potential in AI-centric data-center markets; however, any slowdown in enterprise cap-ex or a significant pricing pressure in the commoditized networking segment would materially alter that outlook. For a deeper quantitative assessment of AVGO’s valuation relative to peers, you might explore the analytics on ValueRay.
AVGO Stock Overview
| Market Cap in USD | 1,650,136m |
| Sub-Industry | Semiconductors |
| IPO / Inception | 2009-08-06 |
| Return 12m vs S&P 500 | 75.6% |
| Analyst Rating | 4.60 of 5 |
AVGO Dividends
| Dividend Yield | 0.66% |
| Yield on Cost 5y | 7.13% |
| Yield CAGR 5y | 12.91% |
| Payout Consistency | 100.0% |
| Payout Ratio | 37.5% |
AVGO Growth Ratios
| CAGR | 95.65% |
| CAGR/Max DD Calmar Ratio | 2.32 |
| CAGR/Mean DD Pain Ratio | 14.96 |
| Current Volume | 16409k |
| Average Volume | 20317.2k |
Piotroski VR‑10 (Strict, 0-10) 7.0
| Net Income (18.93b TTM) > 0 and > 6% of Revenue (6% = 3.60b TTM) |
| FCFTA 0.15 (>2.0%) and ΔFCFTA 3.95pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 13.84% (prev 1.55%; Δ 12.29pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.15 (>3.0%) and CFO 25.44b > Net Income 18.93b (YES >=105%, WARN >=100%) |
| Net Debt (53.51b) to EBITDA (31.77b) ratio: 1.68 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.50 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (4.86b) change vs 12m ago 4.22% (target <= -2.0% for YES) |
| Gross Margin 66.83% (prev 63.90%; Δ 2.93pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 35.93% (prev 27.87%; Δ 8.06pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 6.97 (EBITDA TTM 31.77b / Interest Expense TTM 3.26b) >= 6 (WARN >= 3) |
Altman Z'' 1.37
| (A) 0.05 = (Total Current Assets 25.00b - Total Current Liabilities 16.70b) / Total Assets 165.62b |
| (B) 0.02 = Retained Earnings (Balance) 4.04b / Total Assets 165.62b |
| (C) 0.14 = EBIT TTM 22.72b / Avg Total Assets 166.79b |
| (D) 0.05 = Book Value of Equity 4.27b / Total Liabilities 92.34b |
| Total Rating: 1.37 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 80.71
| 1. Piotroski 7.0pt = 2.0 |
| 2. FCF Yield 1.46% = 0.73 |
| 3. FCF Margin 41.60% = 7.50 |
| 4. Debt/Equity 0.88 = 2.13 |
| 5. Debt/Ebitda 1.68 = 0.61 |
| 6. ROIC - WACC (= 2.93)% = 3.66 |
| 7. RoE 27.01% = 2.25 |
| 8. Rev. Trend 95.97% = 7.20 |
| 9. EPS Trend 92.36% = 4.62 |
What is the price of AVGO shares?
Over the past week, the price has changed by -1.15%, over one month by +10.40%, over three months by +18.13% and over the past year by +102.29%.
Is Broadcom a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of AVGO is around 579.06 USD . This means that AVGO is currently undervalued and has a potential upside of +61.57% (Margin of Safety).
Is AVGO a buy, sell or hold?
- Strong Buy: 30
- Buy: 7
- Hold: 5
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the AVGO price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 394 | 9.9% |
| Analysts Target Price | 394 | 9.9% |
| ValueRay Target Price | 655 | 82.8% |
AVGO Fundamental Data Overview November 09, 2025
P/E Trailing = 89.3683
P/E Forward = 36.7647
P/S = 27.5362
P/B = 21.7941
P/EG = 0.5503
Beta = 1.21
Revenue TTM = 59.93b USD
EBIT TTM = 22.72b USD
EBITDA TTM = 31.77b USD
Long Term Debt = 62.82b USD (from longTermDebt, last quarter)
Short Term Debt = 1.40b USD (from shortTermDebt, last quarter)
Debt = 64.23b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 53.51b USD (from netDebt column, last quarter)
Enterprise Value = 1703.65b USD (1650.14b + Debt 64.23b - CCE 10.72b)
Interest Coverage Ratio = 6.97 (Ebit TTM 22.72b / Interest Expense TTM 3.26b)
FCF Yield = 1.46% (FCF TTM 24.93b / Enterprise Value 1703.65b)
FCF Margin = 41.60% (FCF TTM 24.93b / Revenue TTM 59.93b)
Net Margin = 31.59% (Net Income TTM 18.93b / Revenue TTM 59.93b)
Gross Margin = 66.83% ((Revenue TTM 59.93b - Cost of Revenue TTM 19.88b) / Revenue TTM)
Gross Margin QoQ = 67.10% (prev 67.96%)
Tobins Q-Ratio = 10.29 (Enterprise Value 1703.65b / Total Assets 165.62b)
Interest Expense / Debt = 1.17% (Interest Expense 754.0m / Debt 64.23b)
Taxrate = 21.67% (1.15b / 5.29b)
NOPAT = 17.80b (EBIT 22.72b * (1 - 21.67%))
Current Ratio = 1.50 (Total Current Assets 25.00b / Total Current Liabilities 16.70b)
Debt / Equity = 0.88 (Debt 64.23b / totalStockholderEquity, last quarter 73.28b)
Debt / EBITDA = 1.68 (Net Debt 53.51b / EBITDA 31.77b)
Debt / FCF = 2.15 (Net Debt 53.51b / FCF TTM 24.93b)
Total Stockholder Equity = 70.08b (last 4 quarters mean from totalStockholderEquity)
RoA = 11.43% (Net Income 18.93b / Total Assets 165.62b)
RoE = 27.01% (Net Income TTM 18.93b / Total Stockholder Equity 70.08b)
RoCE = 17.10% (EBIT 22.72b / Capital Employed (Equity 70.08b + L.T.Debt 62.82b))
RoIC = 13.04% (NOPAT 17.80b / Invested Capital 136.48b)
WACC = 10.11% (E(1650.14b)/V(1714.36b) * Re(10.47%) + D(64.23b)/V(1714.36b) * Rd(1.17%) * (1-Tc(0.22)))
Discount Rate = 10.47% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 6.69%
[DCF Debug] Terminal Value 71.82% ; FCFE base≈22.42b ; Y1≈24.97b ; Y5≈32.85b
Fair Price DCF = 81.17 (DCF Value 383.33b / Shares Outstanding 4.72b; 5y FCF grow 13.12% → 3.0% )
EPS Correlation: 92.36 | EPS CAGR: 19.10% | SUE: 0.97 | # QB: 1
Revenue Correlation: 95.97 | Revenue CAGR: 23.49% | SUE: 0.46 | # QB: 0
Additional Sources for AVGO Stock
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