AVGO Stock Analysis: Broadcom | NASDAQ
Semiconductors | NASDAQ, USA | Market Cap: 1.569.331m USD | 12M Return: -3.5% | US11135F1012 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 7.78B
EPS Trend: 98.2%
Qual. Beats: 5
Rev. Trend: 99.1%
Qual. Beats: 1
Warnings
Tailwinds
Seasonality 11.7 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 technology company that designs, develops, and supplies semiconductor devices and infrastructure software solutions, operating through two main segments: Semiconductor Solutions and Infrastructure Software. The Semiconductor Solutions segment spans networking connectivity (custom silicon, Ethernet switching/routing, NIC controllers, fiber optics), wireless device connectivity (RF semiconductors, custom touch controllers, inductive charging ASICs), server and storage system components (PCIe switches, SAS/RAID, fibre channel, HDD/SSD solutions), broadband, and industrial products. The Infrastructure Software segment includes a private cloud software portfolio built around the VMware platform (Cloud Foundation, vSphere, telco cloud, private AI), mainframe software, cybersecurity, enterprise software, and FC SAN management.
The companys products serve a diverse set of end markets, including enterprise and data center networking, AI networking and connectivity, home connectivity, set-top boxes, broadband access, telecom equipment, wireless devices and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. Broadcom is headquartered in Palo Alto, California, and was founded in 1961.
Broadcom operates within the Information Technology sector (GICS Sub-Industry: Semiconductors), an industry characterized by significant R&D intensity and, for fabless players like Broadcom, reliance on third-party foundries for chip manufacturing. The company follows a diversified business model, combining a broad semiconductor portfolio with a sizable enterprise software franchise built largely through acquisitions, including the landmark 2023 acquisition of VMware, which significantly expanded its recurring software revenue base.
- AI semiconductor revenue surges on hyperscaler custom silicon demand
- VMware integration lifts software margins and recurring revenue base
- Apple wireless content shipments drive connectivity chip segment growth
| Net Income: 38.3b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.21 > 0.02 and ΔFCF/TA 5.89 > 1.0 |
| NWC/Revenue: 35.17% < 20% (prev 13.84%; Δ 21.33% < -1%) |
| CFO/TA 0.22 > 3% & CFO 40.7b > Net Income 38.3b |
| Net Debt (35.4b) to EBITDA (52.3b): 0.68 < 3 |
| Current Ratio: 2.50 > 1.5 & < 3 |
| Outstanding Shares: last quarter (4.89b) vs 12m ago 0.56% < -2% |
| Gross Margin: 68.77% > 18% (prev 66.83%; Δ 1.94% > 0.5%) |
| Asset Turnover: 50.37% > 50% (prev 36.18%; Δ 14.19% > 0%) |
| Interest Coverage Ratio: 13.99 > 6 (EBIT TTM 43.6b / Interest Expense TTM 3.12b) |
| A: 0.17 (Total Current Assets 52.2b - Total Current Liabilities 20.8b) / Total Assets 188b |
| B: 0.12 (Retained Earnings 22.2b / Total Assets 188b) |
| C: 0.25 (EBIT TTM 43.6b / Avg Total Assets 177b) |
| D: 1.13 (Book Value of Equity 99.7b / Total Liabilities 88.5b) |
| Altman-Z'' = 4.32 = AA |
| DSRI: 0.87 (Receivables 13.7b/10.7b, Revenue 89.1b/59.9b) |
| GMI: 0.97 (GM 66.83% / 68.77%) |
| AQI: 0.85 (AQ_t 0.71 / AQ_t-1 0.83) |
| SGI: 1.49 (Revenue 89.1b / 59.9b) |
| TATA: -0.01 (NI 38.3b - CFO 40.7b) / TA 188b) |
| Beneish M = -2.91 (Cap -4..+1) = A |
As of October 20, 2026, the stock is trading at USD 334.59 with a total of 17,120,557 shares traded. Over the past week, the price has changed by -5.68%, over one month by -7.74%, over three months by -11.36% and over the past year by -3.48%.
Current recommended Stop Loss: 320.30 (which is 4.3% or 1.2 ATR below the current price).
Broadcom has received a consensus analysts rating of 4.74. Therefore, it is recommended to buy AVGO.
- StrongBuy: 40
- Buy: 7
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 527.6 | 57.7% |
P/E Trailing = 43.3136
P/E Forward = 19.4175
P/S = 17.6124
P/B = 17.4559
P/EG = 0.361
Revenue TTM = 89.1b USD
EBIT TTM = 43.6b USD
EBITDA TTM = 52.3b USD
Long Term Debt = 57.2b USD (from longTermDebt, last quarter)
Short Term Debt = 2.25b USD (from shortTermDebt, last quarter)
Debt = 59.4b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 35.4b USD (calculated: Debt 59.4b - CCE 24.0b)
Enterprise Value = 1605b USD (1569b + Debt 59.4b - CCE 24.0b)
Interest Coverage Ratio = 13.99 (Ebit TTM 43.6b / Interest Expense TTM 3.12b)
EV/FCF = 40.73x (Enterprise Value 1605b / FCF TTM 39.4b)
FCF Yield = 2.46% (FCF TTM 39.4b / Enterprise Value 1605b)
FCF Margin = 44.22% (FCF TTM 39.4b / Revenue TTM 89.1b)
Net Margin = 42.94% (Net Income TTM 38.3b / Revenue TTM 89.1b)
Gross Margin = 68.77% ((Revenue TTM 89.1b - Cost of Revenue TTM 27.8b) / Revenue TTM)
Gross Margin QoQ = 69.13% (prev 69.48%)
Tobins Q-Ratio = 8.53 (Enterprise Value 1605b / Total Assets 188b)
Interest Expense / Debt = 5.24% (Interest Expense 3.12b / Debt 59.4b)
Taxrate = 5.45% (2.20b / 40.5b)
NOPAT = 41.2b (EBIT 43.6b * (1 - 5.45%))
Current Ratio = 2.50 (Total Current Assets 52.2b / Total Current Liabilities 20.8b)
Debt / Equity = 0.60 (Debt 59.4b / totalStockholderEquity, last quarter 99.7b)
Debt / EBITDA = 0.68 (Net Debt 35.4b / EBITDA 52.3b)
Debt / FCF = 0.90 (Net Debt 35.4b / FCF TTM 39.4b)
Total Stockholder Equity = 87.1b (last 4 quarters mean from totalStockholderEquity)
RoA = 21.63% (Net Income 38.3b / Total Assets 188b)
RoE = 43.91% (Net Income TTM 38.3b / Total Stockholder Equity 87.1b)
RoCE = 30.20% (EBIT 43.6b / Capital Employed (Equity 87.1b + L.T.Debt 57.2b))
RoIC = 24.96% (NOPAT 41.2b / Invested Capital 165b)
WACC = 12.41% (E(1569b)/V(1629b) * Re(12.69%) + D(59.4b)/V(1629b) * Rd(5.24%) * (1-Tc(0.05)))
Discount Rate = 12.69% (= CAPM, Blume Beta Adj.) -> capped to 12.54%
Shares (quarterly) Correlation: 74.61 | Cagr: 0.80%
[DCF] Terminal Value 66.00% ; FCFF base≈33.6b ; Y1≈38.5b ; Y5≈56.7b
[DCF] Fair Price = 96.33 (EV 495b - Net Debt 35.4b = Equity 460b / Shares 4.77b; r=12.41% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 98.18 | EPS CAGR: 34.35% | SUE: 4.0 | # QB: 5
Revenue Correlation: 99.14 | Revenue CAGR: 34.79% | SUE: 0.87 | # QB: 1
EPS current Quarter (2027-01-31): EPS=4.08 | Chg30d=+0.18% | Revisions=-36% | Analysts=36
EPS current Year (2026-10-31): EPS=11.66 | Chg30d=+0.02% | Revisions=+18% | GrowthEPS=+70.9% | GrowthRev=+65.9%
EPS next Year (2027-10-31): EPS=19.40 | Chg30d=+0.07% | Revisions=-31% | GrowthEPS=+66.4% | GrowthRev=+64.2%
[Analyst] Revisions Ratio: -17% (up=44, down=62)