(AVGO) Broadcom - Overview
Sector: Technology | Industry: Semiconductors | Exchange: NASDAQ (USA) | Market Cap: 1.946.280m USD | Total Return: 81.1% in 12m
Industry Rotation: +7.3
Avg Turnover: 7.74B
EPS Trend: 96.3%
Qual. Beats: 3
Rev. Trend: 99.1%
Qual. Beats: 0
Warnings
P/E ratio 80.1
Tailwinds
Confidence
Broadcom Inc. (AVGO) is a global technology leader specializing in semiconductor devices and infrastructure software. The company operates through two primary segments: Semiconductor Solutions and Infrastructure Software. Its hardware portfolio covers networking, wireless connectivity, server storage, and broadband access, while its software division provides private cloud solutions, mainframe management, and cybersecurity services.
Broadcom follows a highly acquisitive business model, integrating established software platforms like VMware and CA Technologies to generate recurring revenue streams alongside its hardware sales. The semiconductor sector is currently driven by the rapid expansion of AI data centers, where Broadcom’s custom accelerators and high-speed switching silicon play a critical role in networking infrastructure.
Investors may find additional performance metrics and peer comparisons on ValueRay to further their analysis. Founded in 1961 and headquartered in Palo Alto, Broadcom serves diverse end markets ranging from telecommunications and enterprise networking to industrial automation and alternative energy systems.
- Hyperscale data center demand for AI networking and custom accelerators drives revenue
- VMware integration and subscription transition expand software segment operating margins
- Concentration of wireless chip sales to Apple impacts seasonal revenue stability
- High interest rates and debt levels influence capital allocation and dividend growth
- Enterprise infrastructure spending cycles dictate legacy semiconductor and storage hardware demand
| Net Income: 24.97b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.17 > 0.02 and ΔFCF/TA 4.48 > 1.0 |
| NWC/Revenue: 22.27% < 20% (prev 0.15%; Δ 22.12% < -1%) |
| CFO/TA 0.17 > 3% & CFO 29.68b > Net Income 24.97b |
| Net Debt (51.88b) to EBITDA (38.92b): 1.33 < 3 |
| Current Ratio: 1.90 > 1.5 & < 3 |
| Outstanding Shares: last quarter (4.89b) vs 12m ago 1.08% < -2% |
| Gross Margin: 67.09% > 18% (prev 0.65%; Δ 6.64k% > 0.5%) |
| Asset Turnover: 40.73% > 50% (prev 32.98%; Δ 7.76% > 0%) |
| Interest Coverage Ratio: 9.24 > 6 (EBITDA TTM 38.92b / Interest Expense TTM 3.03b) |
| A: 0.09 (Total Current Assets 32.06b - Total Current Liabilities 16.86b) / Total Assets 169.90b |
| B: 0.04 (Retained Earnings 6.52b / Total Assets 169.90b) |
| C: 0.17 (EBIT TTM 27.99b / Avg Total Assets 167.63b) |
| D: 0.07 (Book Value of Equity 6.74b / Total Liabilities 90.03b) |
| Altman-Z'' = 1.91 = BBB |
| DSRI: 0.88 (Receivables 8.46b/7.68b, Revenue 68.28b/54.53b) |
| GMI: 0.96 (GM 67.09% / 64.70%) |
| AQI: 0.93 (AQ_t 0.80 / AQ_t-1 0.86) |
| SGI: 1.25 (Revenue 68.28b / 54.53b) |
| TATA: -0.03 (NI 24.97b - CFO 29.68b) / TA 169.90b) |
| Beneish M = -3.05 (Cap -4..+1) = AA |
Over the past week, the price has changed by -2.60%, over one month by -2.01%, over three months by +25.63% and over the past year by +81.10%.
- StrongBuy: 36
- Buy: 7
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 477.1 | 15.2% |
P/E Forward = 38.61
P/S = 28.5036
P/B = 25.4896
P/EG = 0.9355
Revenue TTM = 68.28b USD
EBIT TTM = 27.99b USD
EBITDA TTM = 38.92b USD
Long Term Debt = 63.80b USD (from longTermDebt, last quarter)
Short Term Debt = 2.25b USD (from shortTermDebt, last quarter)
Debt = 66.06b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 51.88b USD (calculated: Debt 66.06b - CCE 14.17b)
Enterprise Value = 1998.16b USD (1946.28b + Debt 66.06b - CCE 14.17b)
Interest Coverage Ratio = 9.24 (Ebit TTM 27.99b / Interest Expense TTM 3.03b)
EV/FCF = 69.11x (Enterprise Value 1998.16b / FCF TTM 28.91b)
FCF Yield = 1.45% (FCF TTM 28.91b / Enterprise Value 1998.16b)
FCF Margin = 42.34% (FCF TTM 28.91b / Revenue TTM 68.28b)
Net Margin = 36.57% (Net Income TTM 24.97b / Revenue TTM 68.28b)
Gross Margin = 67.09% ((Revenue TTM 68.28b - Cost of Revenue TTM 22.47b) / Revenue TTM)
Gross Margin QoQ = 65.57% (prev 67.99%)
Tobins Q-Ratio = 11.76 (Enterprise Value 1998.16b / Total Assets 169.90b)
Interest Expense / Debt = 1.13% (Interest Expense 746.0m / Debt 66.06b)
Taxrate = 10.32% (846.0m / 8.20b)
NOPAT = 25.10b (EBIT 27.99b * (1 - 10.32%))
Current Ratio = 1.90 (Total Current Assets 32.06b / Total Current Liabilities 16.86b)
Debt / Equity = 0.83 (Debt 66.06b / totalStockholderEquity, last quarter 79.87b)
Debt / EBITDA = 1.33 (Net Debt 51.88b / EBITDA 38.92b)
Debt / FCF = 1.79 (Net Debt 51.88b / FCF TTM 28.91b)
Total Stockholder Equity = 76.01b (last 4 quarters mean from totalStockholderEquity)
RoA = 14.90% (Net Income 24.97b / Total Assets 169.90b)
RoE = 32.85% (Net Income TTM 24.97b / Total Stockholder Equity 76.01b)
RoCE = 20.02% (EBIT 27.99b / Capital Employed (Equity 76.01b + L.T.Debt 63.80b))
RoIC = 17.79% (NOPAT 25.10b / Invested Capital 141.12b)
WACC = 12.88% (E(1946.28b)/V(2012.34b) * Re(13.28%) + D(66.06b)/V(2012.34b) * Rd(1.13%) * (1-Tc(0.10)))
Discount Rate = 13.28% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 77.78 | Cagr: 6.19%
[DCF] Terminal Value 64.83% ; FCFF base≈25.64b ; Y1≈28.55b ; Y5≈37.57b
[DCF] Fair Price = 58.69 (EV 329.78b - Net Debt 51.88b = Equity 277.90b / Shares 4.73b; r=12.88% [WACC]; 5y FCF grow 13.12% → 3.0% )
EPS Correlation: 96.25 | EPS CAGR: 24.73% | SUE: 0.96 | # QB: 3
Revenue Correlation: 99.11 | Revenue CAGR: 30.43% | SUE: 0.83 | # QB: 0
EPS current Quarter (2026-07-31): EPS=3.22 | Chg30d=N/A | Revisions=+25% | Analysts=35
EPS current Year (2026-10-31): EPS=11.38 | Chg30d=-0.44% | Revisions=+25% | GrowthEPS=+66.8% | GrowthRev=+62.0%
EPS next Year (2027-10-31): EPS=18.25 | Chg30d=+0.74% | Revisions=+56% | GrowthEPS=+60.5% | GrowthRev=+53.3%
[Analyst] Revisions Ratio: +56%