BROADCOM INC (1AVGO.MI) Fundamental Analysis & Valuation

BIT:1AVGO • US11135F1012

Current stock price

258.8 EUR
-2.85 (-1.09%)
Last:

This 1AVGO.MI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. 1AVGO.MI Profitability Analysis

1.1 Basic Checks

  • 1AVGO had positive earnings in the past year.
  • 1AVGO had a positive operating cash flow in the past year.
  • Each year in the past 5 years 1AVGO has been profitable.
  • In the past 5 years 1AVGO always reported a positive cash flow from operatings.
1AVGO.MI Yearly Net Income VS EBIT VS OCF VS FCF1AVGO.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B 20B 25B

1.2 Ratios

  • The Return On Assets of 1AVGO (14.70%) is better than 79.31% of its industry peers.
  • 1AVGO's Return On Equity of 31.27% is fine compared to the rest of the industry. 1AVGO outperforms 77.59% of its industry peers.
  • The Return On Invested Capital of 1AVGO (11.54%) is comparable to the rest of the industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for 1AVGO is below the industry average of 14.98%.
  • The 3 year average ROIC (10.89%) for 1AVGO is below the current ROIC(11.54%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 14.7%
ROE 31.27%
ROIC 11.54%
ROA(3y)12.13%
ROA(5y)12.05%
ROE(3y)31.95%
ROE(5y)34.21%
ROIC(3y)10.89%
ROIC(5y)10.78%
1AVGO.MI Yearly ROA, ROE, ROIC1AVGO.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40

1.3 Margins

  • 1AVGO has a Profit Margin of 36.57%. This is amongst the best in the industry. 1AVGO outperforms 93.10% of its industry peers.
  • In the last couple of years the Profit Margin of 1AVGO has grown nicely.
  • With an excellent Operating Margin value of 41.58%, 1AVGO belongs to the best of the industry, outperforming 91.38% of the companies in the same industry.
  • In the last couple of years the Operating Margin of 1AVGO has grown nicely.
  • The Gross Margin of 1AVGO (67.93%) is better than 91.38% of its industry peers.
  • In the last couple of years the Gross Margin of 1AVGO has grown nicely.
Industry RankSector Rank
OM 41.58%
PM (TTM) 36.57%
GM 67.93%
OM growth 3Y-1.65%
OM growth 5Y17.55%
PM growth 3Y2.31%
PM growth 5Y26.56%
GM growth 3Y0.66%
GM growth 5Y3.66%
1AVGO.MI Yearly Profit, Operating, Gross Margins1AVGO.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60

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5

2. 1AVGO.MI Health Analysis

2.1 Basic Checks

  • 1AVGO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • Compared to 1 year ago, 1AVGO has more shares outstanding
  • 1AVGO has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, 1AVGO has an improved debt to assets ratio.
1AVGO.MI Yearly Shares Outstanding1AVGO.MI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B
1AVGO.MI Yearly Total Debt VS Total Assets1AVGO.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B

2.2 Solvency

  • 1AVGO has an Altman-Z score of 10.50. This indicates that 1AVGO is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of 1AVGO (10.50) is better than 68.97% of its industry peers.
  • The Debt to FCF ratio of 1AVGO is 2.28, which is a good value as it means it would take 1AVGO, 2.28 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of 1AVGO (2.28) is comparable to the rest of the industry.
  • 1AVGO has a Debt/Equity ratio of 0.80. This is a neutral value indicating 1AVGO is somewhat dependend on debt financing.
  • The Debt to Equity ratio of 1AVGO (0.80) is worse than 84.48% of its industry peers.
  • Although 1AVGO's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.8
Debt/FCF 2.28
Altman-Z 10.5
ROIC/WACC1.03
WACC11.25%
1AVGO.MI Yearly LT Debt VS Equity VS FCF1AVGO.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B

2.3 Liquidity

  • 1AVGO has a Current Ratio of 1.90. This is a normal value and indicates that 1AVGO is financially healthy and should not expect problems in meeting its short term obligations.
  • 1AVGO has a Current ratio of 1.90. This is in the lower half of the industry: 1AVGO underperforms 72.41% of its industry peers.
  • 1AVGO has a Quick Ratio of 1.73. This is a normal value and indicates that 1AVGO is financially healthy and should not expect problems in meeting its short term obligations.
  • 1AVGO has a Quick ratio (1.73) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.9
Quick Ratio 1.73
1AVGO.MI Yearly Current Assets VS Current Liabilites1AVGO.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

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10

3. 1AVGO.MI Growth Analysis

3.1 Past

  • 1AVGO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.74%, which is quite impressive.
  • The Earnings Per Share has been growing by 25.23% on average over the past years. This is a very strong growth
  • 1AVGO shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.22%.
  • 1AVGO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.74% yearly.
EPS 1Y (TTM)35.74%
EPS 3Y21.91%
EPS 5Y25.23%
EPS Q2Q%28.12%
Revenue 1Y (TTM)25.22%
Revenue growth 3Y24.38%
Revenue growth 5Y21.74%
Sales Q2Q%29.47%

3.2 Future

  • Based on estimates for the next years, 1AVGO will show a very strong growth in Earnings Per Share. The EPS will grow by 28.32% on average per year.
  • 1AVGO is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 30.05% yearly.
EPS Next Y51.85%
EPS Next 2Y45.28%
EPS Next 3Y37.71%
EPS Next 5Y28.32%
Revenue Next Year65.02%
Revenue Next 2Y59.04%
Revenue Next 3Y47.04%
Revenue Next 5Y30.05%

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
1AVGO.MI Yearly Revenue VS Estimates1AVGO.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 50B 100B 150B 200B
1AVGO.MI Yearly EPS VS Estimates1AVGO.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15 20

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4

4. 1AVGO.MI Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 40.95, which means the current valuation is very expensive for 1AVGO.
  • The rest of the industry has a similar Price/Earnings ratio as 1AVGO.
  • 1AVGO is valuated expensively when we compare the Price/Earnings ratio to 25.35, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 20.67, which indicates a rather expensive current valuation of 1AVGO.
  • Based on the Price/Forward Earnings ratio, 1AVGO is valued a bit cheaper than the industry average as 68.97% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of 1AVGO to the average of the S&P500 Index (22.61), we can say 1AVGO is valued inline with the index average.
Industry RankSector Rank
PE 40.95
Fwd PE 20.67
1AVGO.MI Price Earnings VS Forward Price Earnings1AVGO.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • 79.31% of the companies in the same industry are cheaper than 1AVGO, based on the Enterprise Value to EBITDA ratio.
  • 1AVGO's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 48.73
EV/EBITDA 39.33
1AVGO.MI Per share data1AVGO.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The excellent profitability rating of 1AVGO may justify a higher PE ratio.
  • A more expensive valuation may be justified as 1AVGO's earnings are expected to grow with 37.71% in the coming years.
PEG (NY)0.79
PEG (5Y)1.62
EPS Next 2Y45.28%
EPS Next 3Y37.71%

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4

5. 1AVGO.MI Dividend Analysis

5.1 Amount

  • 1AVGO has a yearly dividend return of 0.84%, which is pretty low.
  • 1AVGO's Dividend Yield is a higher than the industry average which is at 0.78.
  • Compared to an average S&P500 Dividend Yield of 1.89, 1AVGO's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.84%

5.2 History

  • The dividend of 1AVGO is nicely growing with an annual growth rate of 11.45%!
Dividend Growth(5Y)11.45%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

  • 45.87% of the earnings are spent on dividend by 1AVGO. This is a bit on the high side, but may be sustainable.
  • 1AVGO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP45.87%
EPS Next 2Y45.28%
EPS Next 3Y37.71%
1AVGO.MI Yearly Income VS Free CF VS Dividend1AVGO.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B 20B 25B
1AVGO.MI Dividend Payout.1AVGO.MI Dividend Payout, showing the Payout Ratio.1AVGO.MI Dividend Payout.PayoutRetained Earnings

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1AVGO.MI Fundamentals: All Metrics, Ratios and Statistics

BROADCOM INC

BIT:1AVGO (3/30/2026, 7:00:00 PM)

258.8

-2.85 (-1.09%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)03-04
Earnings (Next)06-03
Inst Owners79.08%
Inst Owner ChangeN/A
Ins Owners1.91%
Ins Owner ChangeN/A
Market Cap1.23T
Revenue(TTM)68.28B
Net Income(TTM)24.97B
Analysts84.83
Price Target394.59 (52.47%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.84%
Yearly Dividend2.05
Dividend Growth(5Y)11.45%
DP45.87%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.89%
Min EPS beat(2)-0.87%
Max EPS beat(2)2.65%
EPS beat(4)2
Avg EPS beat(4)0.34%
Min EPS beat(4)-0.93%
Max EPS beat(4)2.65%
EPS beat(8)5
Avg EPS beat(8)0.97%
EPS beat(12)7
Avg EPS beat(12)0.89%
EPS beat(16)9
Avg EPS beat(16)0.78%
Revenue beat(2)1
Avg Revenue beat(2)-0.16%
Min Revenue beat(2)-1.29%
Max Revenue beat(2)0.96%
Revenue beat(4)1
Avg Revenue beat(4)-0.85%
Min Revenue beat(4)-1.89%
Max Revenue beat(4)0.96%
Revenue beat(8)3
Avg Revenue beat(8)-0.61%
Revenue beat(12)4
Avg Revenue beat(12)-0.95%
Revenue beat(16)5
Avg Revenue beat(16)-0.96%
PT rev (1m)0%
PT rev (3m)4.75%
EPS NQ rev (1m)10.49%
EPS NQ rev (3m)11.57%
EPS NY rev (1m)0.64%
EPS NY rev (3m)0.83%
Revenue NQ rev (1m)8.19%
Revenue NQ rev (3m)7.38%
Revenue NY rev (1m)7.6%
Revenue NY rev (3m)8.09%
Valuation
Industry RankSector Rank
PE 40.95
Fwd PE 20.67
P/S 20.63
P/FCF 48.73
P/OCF 47.46
P/B 17.64
P/tB N/A
EV/EBITDA 39.33
EPS(TTM)6.32
EY2.44%
EPS(NY)12.52
Fwd EY4.84%
FCF(TTM)5.31
FCFY2.05%
OCF(TTM)5.45
OCFY2.11%
SpS12.54
BVpS14.67
TBVpS-8.86
PEG (NY)0.79
PEG (5Y)1.62
Graham Number45.68
Profitability
Industry RankSector Rank
ROA 14.7%
ROE 31.27%
ROCE 18.55%
ROIC 11.54%
ROICexc 12.72%
ROICexgc 164.02%
OM 41.58%
PM (TTM) 36.57%
GM 67.93%
FCFM 42.34%
ROA(3y)12.13%
ROA(5y)12.05%
ROE(3y)31.95%
ROE(5y)34.21%
ROIC(3y)10.89%
ROIC(5y)10.78%
ROICexc(3y)12.9%
ROICexc(5y)12.93%
ROICexgc(3y)453.16%
ROICexgc(5y)376.99%
ROCE(3y)17.51%
ROCE(5y)17.33%
ROICexgc growth 3Y-4.02%
ROICexgc growth 5Y10.23%
ROICexc growth 3Y-10.3%
ROICexc growth 5Y22.21%
OM growth 3Y-1.65%
OM growth 5Y17.55%
PM growth 3Y2.31%
PM growth 5Y26.56%
GM growth 3Y0.66%
GM growth 5Y3.66%
F-Score8
Asset Turnover0.4
Health
Industry RankSector Rank
Debt/Equity 0.8
Debt/FCF 2.28
Debt/EBITDA 1.72
Cap/Depr 8.83%
Cap/Sales 1.13%
Interest Coverage 10.84
Cash Conversion 79.91%
Profit Quality 115.77%
Current Ratio 1.9
Quick Ratio 1.73
Altman-Z 10.5
F-Score8
WACC11.25%
ROIC/WACC1.03
Cap/Depr(3y)8.12%
Cap/Depr(5y)8.04%
Cap/Sales(3y)1.1%
Cap/Sales(5y)1.24%
Profit Quality(3y)190.31%
Profit Quality(5y)184.64%
High Growth Momentum
Growth
EPS 1Y (TTM)35.74%
EPS 3Y21.91%
EPS 5Y25.23%
EPS Q2Q%28.12%
EPS Next Y51.85%
EPS Next 2Y45.28%
EPS Next 3Y37.71%
EPS Next 5Y28.32%
Revenue 1Y (TTM)25.22%
Revenue growth 3Y24.38%
Revenue growth 5Y21.74%
Sales Q2Q%29.47%
Revenue Next Year65.02%
Revenue Next 2Y59.04%
Revenue Next 3Y47.04%
Revenue Next 5Y30.05%
EBIT growth 1Y50.21%
EBIT growth 3Y22.33%
EBIT growth 5Y43.11%
EBIT Next Year55.36%
EBIT Next 3Y36.46%
EBIT Next 5Y32.68%
FCF growth 1Y57.18%
FCF growth 3Y18.17%
FCF growth 5Y18.34%
OCF growth 1Y57.36%
OCF growth 3Y18.06%
OCF growth 5Y17.95%

BROADCOM INC / 1AVGO.MI Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for BROADCOM INC?

ChartMill assigns a fundamental rating of 7 / 10 to 1AVGO.MI.


Can you provide the valuation status for BROADCOM INC?

ChartMill assigns a valuation rating of 4 / 10 to BROADCOM INC (1AVGO.MI). This can be considered as Fairly Valued.


How profitable is BROADCOM INC (1AVGO.MI) stock?

BROADCOM INC (1AVGO.MI) has a profitability rating of 8 / 10.


What is the valuation of BROADCOM INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for BROADCOM INC (1AVGO.MI) is 40.95 and the Price/Book (PB) ratio is 17.64.


Is the dividend of BROADCOM INC sustainable?

The dividend rating of BROADCOM INC (1AVGO.MI) is 4 / 10 and the dividend payout ratio is 45.87%.