AVGO Stock Analysis: Broadcom | NASDAQ
Semiconductors | NASDAQ, USA | Market Cap: 1.869.681m USD | 12M Return: 26% | US11135F1012 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 7.47B
EPS Trend: 97.5%
Qual. Beats: 4
Rev. Trend: 99.5%
Qual. Beats: 0
Warnings
Tailwinds
Seasonality 11.6 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Broadcom Inc. (NASDAQ: AVGO) is a global semiconductor and infrastructure software company headquartered in Palo Alto, California, founded in 1961. It operates through two main segments: Semiconductor Solutions and Infrastructure Software. The semiconductor business spans networking connectivity (custom silicon, Ethernet switching/routing, fiber optics), wireless device components (RF semiconductors, touch controllers, inductive charging ASICs), server and storage solutions (PCIe switches, SAS/RAID, fibre channel, HDD/SSD), broadband, and industrial products. The infrastructure software segment is built largely around the VMware portfolio acquired in 2023 and includes private cloud and mainframe software, cybersecurity, enterprise software, and FC SAN management tools.
Its products serve enterprise and data center networking-including AI networking and connectivity-telecommunications equipment, broadband and home connectivity, factory automation, power generation, and electronic displays. Within the Information Technology sector (GICS Sub Industry: Semiconductors), Broadcom is a mega-cap company (~$1.96 trillion market cap) listed on NASDAQ since 2009, notable for its hybrid business model that combines merchant and custom silicon chip design with a large recurring-revenue software franchise.
- Custom AI silicon revenue surges on hyperscaler demand
- VMware integration expands software margins and recurring revenue
- Aggressive share buybacks amplify earnings per share growth
| Net Income: 29.3b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.18 > 0.02 and ΔFCF/TA 4.50 > 1.0 |
| NWC/Revenue: 30.94% < 20% (prev 2.78%; Δ 28.17% < -1%) |
| CFO/TA 0.19 > 3% & CFO 33.6b > Net Income 29.3b |
| Net Debt (45.3b) to EBITDA (42.0b): 1.08 < 3 |
| Current Ratio: 2.24 > 1.5 & < 3 |
| Outstanding Shares: last quarter (4.88b) vs 12m ago 1.04% < -2% |
| Gross Margin: 66.96% > 18% (prev 66.09%; Δ 0.88% > 0.5%) |
| Asset Turnover: 43.90% > 50% (prev 34.65%; Δ 9.25% > 0%) |
| Interest Coverage Ratio: 11.07 > 6 (EBIT TTM 33.3b / Interest Expense TTM 3.01b) |
| A: 0.13 (Total Current Assets 42.2b - Total Current Liabilities 18.9b) / Total Assets 179b |
| B: 0.07 (Retained Earnings 12.2b / Total Assets 179b) |
| C: 0.19 (EBIT TTM 33.3b / Avg Total Assets 172b) |
| D: 0.96 (Book Value of Equity 87.7b / Total Liabilities 91.5b) |
| Altman-Z'' = 3.38 = A |
| DSRI: 1.44 (Receivables 16.7b/8.80b, Revenue 75.5b/57.0b) |
| GMI: 0.99 (GM 66.09% / 66.96%) |
| AQI: 0.88 (AQ_t 0.75 / AQ_t-1 0.85) |
| SGI: 1.32 (Revenue 75.5b / 57.0b) |
| TATA: -0.02 (NI 29.3b - CFO 33.6b) / TA 179b) |
| Beneish M = -2.52 (Cap -4..+1) = A |
As of August 21, 2026, the stock is trading at USD 364.03 with a total of 19,689,176 shares traded. Over the past week, the price has changed by -12.87%, over one month by -3.74%, over three months by -12.72% and over the past year by +25.95%.
Current recommended Stop Loss: 343.90 (which is 5.5% or 1.2 ATR below the current price).
Broadcom has received a consensus analysts rating of 4.72. Therefore, it is recommended to buy AVGO.
- StrongBuy: 36
- Buy: 7
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 527.9 | 45% |
P/E Trailing = 65.2807
P/E Forward = 22.6244
P/S = 24.7755
P/B = 22.9169
P/EG = 0.4748
Revenue TTM = 75.5b USD
EBIT TTM = 33.3b USD
EBITDA TTM = 42.0b USD
Long Term Debt = 62.7b USD (from longTermDebt, last quarter)
Short Term Debt = 2.25b USD (from shortTermDebt, last quarter)
Debt = 64.9b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 45.3b USD (calculated: Debt 64.9b - CCE 19.6b)
Enterprise Value = 1915b USD (1870b + Debt 64.9b - CCE 19.6b)
Interest Coverage Ratio = 11.07 (Ebit TTM 33.3b / Interest Expense TTM 3.01b)
EV/FCF = 58.45x (Enterprise Value 1915b / FCF TTM 32.8b)
FCF Yield = 1.71% (FCF TTM 32.8b / Enterprise Value 1915b)
FCF Margin = 43.41% (FCF TTM 32.8b / Revenue TTM 75.5b)
Net Margin = 38.85% (Net Income TTM 29.3b / Revenue TTM 75.5b)
Gross Margin = 66.96% ((Revenue TTM 75.5b - Cost of Revenue TTM 24.9b) / Revenue TTM)
Gross Margin QoQ = 67.24% (prev 65.57%)
Tobins Q-Ratio = 10.69 (Enterprise Value 1915b / Total Assets 179b)
Interest Expense / Debt = 4.63% (Interest Expense 3.01b / Debt 64.9b)
Taxrate = 3.81% (1.16b / 30.5b)
NOPAT = 32.0b (EBIT 33.3b * (1 - 3.81%))
Current Ratio = 2.24 (Total Current Assets 42.2b / Total Current Liabilities 18.9b)
Debt / Equity = 0.74 (Debt 64.9b / totalStockholderEquity, last quarter 87.7b)
Debt / EBITDA = 1.08 (Net Debt 45.3b / EBITDA 42.0b)
Debt / FCF = 1.38 (Net Debt 45.3b / FCF TTM 32.8b)
Total Stockholder Equity = 80.5b (last 4 quarters mean from totalStockholderEquity)
RoA = 17.06% (Net Income 29.3b / Total Assets 179b)
RoE = 36.40% (Net Income TTM 29.3b / Total Stockholder Equity 80.5b)
RoCE = 23.24% (EBIT 33.3b / Capital Employed (Equity 80.5b + L.T.Debt 62.7b))
RoIC = 20.16% (NOPAT 32.0b / Invested Capital 159b)
WACC = 12.95% (E(1870b)/V(1935b) * Re(13.24%) + D(64.9b)/V(1935b) * Rd(4.63%) * (1-Tc(0.04)))
Discount Rate = 13.24% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: 81.74 | Cagr: 1.94%
[DCF] Terminal Value 64.59% ; FCFF base≈28.7b ; Y1≈32.9b ; Y5≈48.5b
[DCF] Fair Price = 74.72 (EV 401b - Net Debt 45.3b = Equity 355b / Shares 4.76b; r=12.95% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 97.51 | EPS CAGR: 28.95% | SUE: 1.35 | # QB: 4
Revenue Correlation: 99.47 | Revenue CAGR: 32.18% | SUE: 0.35 | # QB: 0
EPS current Quarter (2026-07-31): EPS=3.24 | Chg30d=+0.00% | Revisions=+43% | Analysts=37
EPS current Year (2026-10-31): EPS=11.63 | Chg30d=+0.01% | Revisions=+17% | GrowthEPS=+70.5% | GrowthRev=+66.0%
EPS next Year (2027-10-31): EPS=19.53 | Chg30d=+0.70% | Revisions=+40% | GrowthEPS=+68.0% | GrowthRev=+63.6%
[Analyst] Revisions Ratio: +45% (up=29, down=10)