BROADCOM INC (AVGO) Fundamental Analysis & Valuation

NASDAQ:AVGO • US11135F1012

Current stock price

402.17 USD
+2.54 (+0.64%)
At close:
406.31 USD
+4.14 (+1.03%)
Pre-Market:

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

9

1. AVGO Profitability Analysis

1.1 Basic Checks

  • In the past year AVGO was profitable.
  • AVGO had a positive operating cash flow in the past year.
  • AVGO had positive earnings in each of the past 5 years.
  • Each year in the past 5 years AVGO had a positive operating cash flow.
AVGO Yearly Net Income VS EBIT VS OCF VS FCFAVGO 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

  • With an excellent Return On Assets value of 14.70%, AVGO belongs to the best of the industry, outperforming 87.83% of the companies in the same industry.
  • The Return On Equity of AVGO (31.27%) is better than 92.17% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 11.54%, AVGO belongs to the top of the industry, outperforming 85.22% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for AVGO is in line with the industry average of 10.89%.
  • The last Return On Invested Capital (11.54%) for AVGO is above the 3 year average (10.89%), which is a sign of increasing profitability.
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%
AVGO Yearly ROA, ROE, ROICAVGO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40

1.3 Margins

  • AVGO has a Profit Margin of 36.57%. This is amongst the best in the industry. AVGO outperforms 95.65% of its industry peers.
  • In the last couple of years the Profit Margin of AVGO has grown nicely.
  • AVGO has a better Operating Margin (41.58%) than 95.65% of its industry peers.
  • In the last couple of years the Operating Margin of AVGO has grown nicely.
  • The Gross Margin of AVGO (67.93%) is better than 90.43% of its industry peers.
  • In the last couple of years the Gross Margin of AVGO 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%
AVGO Yearly Profit, Operating, Gross MarginsAVGO 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. AVGO Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AVGO is destroying value.
  • Compared to 1 year ago, AVGO has more shares outstanding
  • AVGO has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, AVGO has an improved debt to assets ratio.
AVGO Yearly Shares OutstandingAVGO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B
AVGO Yearly Total Debt VS Total AssetsAVGO 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

  • AVGO has an Altman-Z score of 13.80. This indicates that AVGO is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 13.80, AVGO is in the better half of the industry, outperforming 74.78% of the companies in the same industry.
  • AVGO has a debt to FCF ratio of 2.28. This is a good value and a sign of high solvency as AVGO would need 2.28 years to pay back of all of its debts.
  • AVGO's Debt to FCF ratio of 2.28 is fine compared to the rest of the industry. AVGO outperforms 65.22% of its industry peers.
  • AVGO has a Debt/Equity ratio of 0.80. This is a neutral value indicating AVGO is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.80, AVGO is doing worse than 80.00% of the companies in the same industry.
  • Even though the debt/equity ratio score it not favorable for AVGO, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
Industry RankSector Rank
Debt/Equity 0.8
Debt/FCF 2.28
Altman-Z 13.8
ROIC/WACC0.97
WACC11.85%
AVGO Yearly LT Debt VS Equity VS FCFAVGO 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

  • AVGO has a Current Ratio of 1.90. This is a normal value and indicates that AVGO is financially healthy and should not expect problems in meeting its short term obligations.
  • AVGO has a Current ratio of 1.90. This is amonst the worse of the industry: AVGO underperforms 81.74% of its industry peers.
  • A Quick Ratio of 1.73 indicates that AVGO should not have too much problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 1.73, AVGO is doing worse than 68.70% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.9
Quick Ratio 1.73
AVGO Yearly Current Assets VS Current LiabilitesAVGO 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. AVGO Growth Analysis

3.1 Past

  • AVGO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.74%, which is quite impressive.
  • Measured over the past years, AVGO shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.23% on average per year.
  • The Revenue has grown by 25.22% in the past year. This is a very strong growth!
  • The Revenue has been growing by 21.74% on average over the past years. This is a very strong growth!
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

  • The Earnings Per Share is expected to grow by 28.32% on average over the next years. This is a very strong growth
  • AVGO is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 30.05% yearly.
EPS Next Y68.68%
EPS Next 2Y62.38%
EPS Next 3Y47.66%
EPS Next 5Y28.32%
Revenue Next Year65.54%
Revenue Next 2Y59.53%
Revenue Next 3Y47.22%
Revenue Next 5Y30.05%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
  • 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.
AVGO Yearly Revenue VS EstimatesAVGO 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
AVGO Yearly EPS VS EstimatesAVGO 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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6

4. AVGO Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 55.32, which means the current valuation is very expensive for AVGO.
  • 68.70% of the companies in the same industry are more expensive than AVGO, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 27.66. AVGO is valued rather expensively when compared to this.
  • The Price/Forward Earnings ratio is 22.37, which indicates a rather expensive current valuation of AVGO.
  • Based on the Price/Forward Earnings ratio, AVGO is valued cheaply inside the industry as 86.09% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of AVGO to the average of the S&P500 Index (38.00), we can say AVGO is valued slightly cheaper.
Industry RankSector Rank
PE 55.32
Fwd PE 22.37
AVGO Price Earnings VS Forward Price EarningsAVGO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, AVGO is valued a bit cheaper than 61.74% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of AVGO indicates a somewhat cheap valuation: AVGO is cheaper than 65.22% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 65.86
EV/EBITDA 52.66
AVGO Per share dataAVGO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10 -10 15

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.
  • AVGO has an outstanding profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as AVGO's earnings are expected to grow with 47.66% in the coming years.
PEG (NY)0.81
PEG (5Y)2.19
EPS Next 2Y62.38%
EPS Next 3Y47.66%

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6

5. AVGO Dividend Analysis

5.1 Amount

  • AVGO has a yearly dividend return of 0.65%, which is pretty low.
  • AVGO's Dividend Yield is rather good when compared to the industry average which is at 0.45. AVGO pays more dividend than 83.48% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.81, AVGO's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.65%

5.2 History

  • The dividend of AVGO is nicely growing with an annual growth rate of 11.45%!
  • AVGO has paid a dividend for at least 10 years, which is a reliable track record.
  • AVGO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.45%
Div Incr Years15
Div Non Decr Years15
AVGO Yearly Dividends per shareAVGO Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

5.3 Sustainability

  • 45.87% of the earnings are spent on dividend by AVGO. This is a bit on the high side, but may be sustainable.
  • AVGO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP45.87%
EPS Next 2Y62.38%
EPS Next 3Y47.66%
AVGO Yearly Income VS Free CF VS DividendAVGO 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
AVGO Dividend Payout.AVGO Dividend Payout, showing the Payout Ratio.AVGO Dividend Payout.PayoutRetained Earnings

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AVGO Fundamentals: All Metrics, Ratios and Statistics

BROADCOM INC

NASDAQ:AVGO (4/21/2026, 8:26:55 PM)

Premarket: 406.31 +4.14 (+1.03%)

402.17

+2.54 (+0.64%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)03-04
Earnings (Next)06-03
Inst Owners79.28%
Inst Owner Change0.11%
Ins Owners1.85%
Ins Owner Change-3.45%
Market Cap1.90T
Revenue(TTM)68.28B
Net Income(TTM)24.97B
Analysts84.91
Price Target475.62 (18.26%)
Short Float %1.15%
Short Ratio2
Dividend
Industry RankSector Rank
Dividend Yield 0.65%
Yearly Dividend2.36
Dividend Growth(5Y)11.45%
DP45.87%
Div Incr Years15
Div Non Decr Years15
Ex-Date03-23
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)2.84%
PT rev (3m)1.59%
EPS NQ rev (1m)1.12%
EPS NQ rev (3m)12.85%
EPS NY rev (1m)11.08%
EPS NY rev (3m)12.01%
Revenue NQ rev (1m)0.94%
Revenue NQ rev (3m)8.37%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)8.29%
Valuation
Industry RankSector Rank
PE 55.32
Fwd PE 22.37
P/S 27.89
P/FCF 65.86
P/OCF 64.15
P/B 23.84
P/tB N/A
EV/EBITDA 52.66
EPS(TTM)7.27
EY1.81%
EPS(NY)17.98
Fwd EY4.47%
FCF(TTM)6.11
FCFY1.52%
OCF(TTM)6.27
OCFY1.56%
SpS14.42
BVpS16.87
TBVpS-10.19
PEG (NY)0.81
PEG (5Y)2.19
Graham Number52.5304 (-86.94%)
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 13.8
F-Score8
WACC11.85%
ROIC/WACC0.97
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 Y68.68%
EPS Next 2Y62.38%
EPS Next 3Y47.66%
EPS Next 5Y28.32%
Revenue 1Y (TTM)25.22%
Revenue growth 3Y24.38%
Revenue growth 5Y21.74%
Sales Q2Q%29.47%
Revenue Next Year65.54%
Revenue Next 2Y59.53%
Revenue Next 3Y47.22%
Revenue Next 5Y30.05%
EBIT growth 1Y50.21%
EBIT growth 3Y22.33%
EBIT growth 5Y43.11%
EBIT Next Year66.87%
EBIT Next 3Y44.92%
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 / AVGO Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for BROADCOM INC?

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


Can you provide the valuation status for BROADCOM INC?

ChartMill assigns a valuation rating of 6 / 10 to BROADCOM INC (AVGO). This can be considered as Fairly Valued.


What is the profitability of AVGO stock?

BROADCOM INC (AVGO) has a profitability rating of 9 / 10.


Can you provide the PE and PB ratios for AVGO stock?

The Price/Earnings (PE) ratio for BROADCOM INC (AVGO) is 55.32 and the Price/Book (PB) ratio is 23.84.


What is the expected EPS growth for BROADCOM INC (AVGO) stock?

The Earnings per Share (EPS) of BROADCOM INC (AVGO) is expected to grow by 68.68% in the next year.