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BROADCOM INC (AVGO) Stock Fundamental Analysis

USA - Nasdaq - NASDAQ:AVGO - US11135F1012 - Common Stock

406.37 USD
-6.6 (-1.6%)
Last: 12/11/2025, 10:20:41 PM
385.8 USD
-20.57 (-5.06%)
Pre-Market: 12/12/2025, 5:01:49 AM
Fundamental Rating

6

Taking everything into account, AVGO scores 6 out of 10 in our fundamental rating. AVGO was compared to 112 industry peers in the Semiconductors & Semiconductor Equipment industry. AVGO has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, AVGO is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

8

1. Profitability

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 4 of the past 5 years.
AVGO had a positive operating cash flow in 4 of the past 5 years.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B

1.2 Ratios

The Return On Assets of AVGO (11.43%) is better than 84.82% of its industry peers.
With an excellent Return On Equity value of 25.84%, AVGO belongs to the best of the industry, outperforming 90.18% of the companies in the same industry.
AVGO has a Return On Invested Capital of 12.26%. This is amongst the best in the industry. AVGO outperforms 85.71% of its industry peers.
AVGO had an Average Return On Invested Capital over the past 3 years of 14.76%. This is above the industry average of 10.82%.
Industry RankSector Rank
ROA 11.43%
ROE 25.84%
ROIC 12.26%
ROA(3y)12.74%
ROA(5y)10.05%
ROE(3y)38.95%
ROE(5y)30.76%
ROIC(3y)14.76%
ROIC(5y)11.78%
AVGO Yearly ROA, ROE, ROICAVGO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40

1.3 Margins

Looking at the Profit Margin, with a value of 31.59%, AVGO belongs to the top of the industry, outperforming 90.18% of the companies in the same industry.
AVGO's Profit Margin has been stable in the last couple of years.
The Operating Margin of AVGO (39.20%) is better than 96.43% of its industry peers.
In the last couple of years the Operating Margin of AVGO has grown nicely.
With an excellent Gross Margin value of 67.03%, AVGO belongs to the best of the industry, outperforming 91.07% of the companies in the same industry.
In the last couple of years the Gross Margin of AVGO has grown nicely.
Industry RankSector Rank
OM 39.2%
PM (TTM) 31.59%
GM 67.03%
OM growth 3Y-2.23%
OM growth 5Y9.44%
PM growth 3Y-21.3%
PM growth 5Y-0.85%
GM growth 3Y1.13%
GM growth 5Y2.71%
AVGO Yearly Profit, Operating, Gross MarginsAVGO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60

5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AVGO is creating some value.
AVGO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
AVGO Yearly Shares OutstandingAVGO Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B
AVGO Yearly Total Debt VS Total AssetsAVGO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B

2.2 Solvency

An Altman-Z score of 13.39 indicates that AVGO is not in any danger for bankruptcy at the moment.
AVGO's Altman-Z score of 13.39 is fine compared to the rest of the industry. AVGO outperforms 79.46% of its industry peers.
AVGO has a debt to FCF ratio of 2.58. This is a good value and a sign of high solvency as AVGO would need 2.58 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.58, AVGO is doing good in the industry, outperforming 66.07% of the companies in the same industry.
A Debt/Equity ratio of 0.86 indicates that AVGO is somewhat dependend on debt financing.
AVGO has a worse Debt to Equity ratio (0.86) than 83.93% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.86
Debt/FCF 2.58
Altman-Z 13.39
ROIC/WACC1.17
WACC10.45%
AVGO Yearly LT Debt VS Equity VS FCFAVGO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

2.3 Liquidity

A Current Ratio of 1.50 indicates that AVGO should not have too much problems paying its short term obligations.
AVGO's Current ratio of 1.50 is on the low side compared to the rest of the industry. AVGO is outperformed by 83.04% of its industry peers.
A Quick Ratio of 1.37 indicates that AVGO should not have too much problems paying its short term obligations.
The Quick ratio of AVGO (1.37) is worse than 77.68% of its industry peers.
Industry RankSector Rank
Current Ratio 1.5
Quick Ratio 1.37
AVGO Yearly Current Assets VS Current LiabilitesAVGO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 40.47% over the past year.
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.
EPS 1Y (TTM)40.47%
EPS 3Y21.91%
EPS 5Y25.23%
EPS Q2Q%37.32%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%28.18%

3.2 Future

AVGO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.36% yearly.
AVGO is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 24.46% yearly.
EPS Next Y40.29%
EPS Next 2Y37.85%
EPS Next 3Y33.21%
EPS Next 5Y15.36%
Revenue Next Year37.93%
Revenue Next 2Y35.1%
Revenue Next 3Y29.97%
Revenue Next 5Y24.46%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
AVGO Yearly Revenue VS EstimatesAVGO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 50B 100B 150B
AVGO Yearly EPS VS EstimatesAVGO Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15 20

3

4. Valuation

4.1 Price/Earnings Ratio

AVGO is valuated quite expensively with a Price/Earnings ratio of 59.59.
AVGO's Price/Earnings is on the same level as the industry average.
AVGO is valuated expensively when we compare the Price/Earnings ratio to 26.76, which is the current average of the S&P500 Index.
AVGO is valuated quite expensively with a Price/Forward Earnings ratio of 42.47.
AVGO's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.96. AVGO is valued rather expensively when compared to this.
Industry RankSector Rank
PE 59.59
Fwd PE 42.47
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

AVGO's Enterprise Value to EBITDA ratio is in line with the industry average.
AVGO's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 76.98
EV/EBITDA 60.42
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 PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AVGO has an outstanding profitability rating, which may justify a higher PE ratio.
AVGO's earnings are expected to grow with 33.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.48
PEG (5Y)2.36
EPS Next 2Y37.85%
EPS Next 3Y33.21%

5

5. Dividend

5.1 Amount

AVGO has a yearly dividend return of 0.57%, which is pretty low.
AVGO's Dividend Yield is a higher than the industry average which is at 2.09.
Compared to an average S&P500 Dividend Yield of 2.31, AVGO's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.57%

5.2 History

The dividend of AVGO is nicely growing with an annual growth rate of 16.17%!
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)16.17%
Div Incr Years14
Div Non Decr Years14
AVGO Yearly Dividends per shareAVGO Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2

5.3 Sustainability

57.20% 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 slower than its dividend. This means the dividend growth is not sustainable.
DP57.2%
EPS Next 2Y37.85%
EPS Next 3Y33.21%
AVGO Yearly Income VS Free CF VS DividendAVGO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B
AVGO Dividend Payout.AVGO Dividend Payout, showing the Payout Ratio.AVGO Dividend Payout.PayoutRetained Earnings

BROADCOM INC

NASDAQ:AVGO (12/11/2025, 10:20:41 PM)

Premarket: 385.8 -20.57 (-5.06%)

406.37

-6.6 (-1.6%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)12-11 2025-12-11/amc
Earnings (Next)03-04 2026-03-04/amc
Inst Owners79.34%
Inst Owner Change0.81%
Ins Owners1.93%
Ins Owner Change-23.9%
Market Cap1.92T
Revenue(TTM)N/A
Net Income(TTM)18.93B
Analysts85.09
Price Target411.31 (1.22%)
Short Float %1.18%
Short Ratio2.51
Dividend
Industry RankSector Rank
Dividend Yield 0.57%
Yearly Dividend2.22
Dividend Growth(5Y)16.17%
DP57.2%
Div Incr Years14
Div Non Decr Years14
Ex-Date09-22 2025-09-22 (0.59)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.21%
Min EPS beat(2)-0.93%
Max EPS beat(2)0.5%
EPS beat(4)3
Avg EPS beat(4)1.44%
Min EPS beat(4)-0.93%
Max EPS beat(4)5.39%
EPS beat(8)5
Avg EPS beat(8)1.17%
EPS beat(12)7
Avg EPS beat(12)0.73%
EPS beat(16)9
Avg EPS beat(16)0.71%
Revenue beat(2)0
Avg Revenue beat(2)-1.53%
Min Revenue beat(2)-1.89%
Max Revenue beat(2)-1.17%
Revenue beat(4)1
Avg Revenue beat(4)-1.3%
Min Revenue beat(4)-2.22%
Max Revenue beat(4)0.09%
Revenue beat(8)3
Avg Revenue beat(8)-0.95%
Revenue beat(12)3
Avg Revenue beat(12)-1.21%
Revenue beat(16)4
Avg Revenue beat(16)-1.06%
PT rev (1m)4.34%
PT rev (3m)33.83%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)3.91%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)1.17%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)2.8%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.77%
Valuation
Industry RankSector Rank
PE 59.59
Fwd PE 42.47
P/S 32.02
P/FCF 76.98
P/OCF 75.44
P/B 26.19
P/tB N/A
EV/EBITDA 60.42
EPS(TTM)6.82
EY1.68%
EPS(NY)9.57
Fwd EY2.35%
FCF(TTM)5.28
FCFY1.3%
OCF(TTM)5.39
OCFY1.33%
SpS12.69
BVpS15.52
TBVpS-12.47
PEG (NY)1.48
PEG (5Y)2.36
Graham Number48.8
Profitability
Industry RankSector Rank
ROA 11.43%
ROE 25.84%
ROCE 15.78%
ROIC 12.26%
ROICexc 13.21%
ROICexgc 301.66%
OM 39.2%
PM (TTM) 31.59%
GM 67.03%
FCFM 41.6%
ROA(3y)12.74%
ROA(5y)10.05%
ROE(3y)38.95%
ROE(5y)30.76%
ROIC(3y)14.76%
ROIC(5y)11.78%
ROICexc(3y)18.03%
ROICexc(5y)14.28%
ROICexgc(3y)580.38%
ROICexgc(5y)446.38%
ROCE(3y)18.99%
ROCE(5y)15.15%
ROICexgc growth 3Y52.32%
ROICexgc growth 5Y48.04%
ROICexc growth 3Y-10.43%
ROICexc growth 5Y7.73%
OM growth 3Y-2.23%
OM growth 5Y9.44%
PM growth 3Y-21.3%
PM growth 5Y-0.85%
GM growth 3Y1.13%
GM growth 5Y2.71%
F-Score9
Asset Turnover0.36
Health
Industry RankSector Rank
Debt/Equity 0.86
Debt/FCF 2.58
Debt/EBITDA 1.92
Cap/Depr 5.55%
Cap/Sales 0.85%
Interest Coverage 8.67
Cash Conversion 77.92%
Profit Quality 131.68%
Current Ratio 1.5
Quick Ratio 1.37
Altman-Z 13.39
F-Score9
WACC10.45%
ROIC/WACC1.17
Cap/Depr(3y)8.59%
Cap/Depr(5y)7.96%
Cap/Sales(3y)1.2%
Cap/Sales(5y)1.43%
Profit Quality(3y)199.96%
Profit Quality(5y)248.47%
High Growth Momentum
Growth
EPS 1Y (TTM)40.47%
EPS 3Y21.91%
EPS 5Y25.23%
EPS Q2Q%37.32%
EPS Next Y40.29%
EPS Next 2Y37.85%
EPS Next 3Y33.21%
EPS Next 5Y15.36%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%28.18%
Revenue Next Year37.93%
Revenue Next 2Y35.1%
Revenue Next 3Y29.97%
Revenue Next 5Y24.46%
EBIT growth 1Y61.92%
EBIT growth 3Y20.65%
EBIT growth 5Y29.07%
EBIT Next Year45.92%
EBIT Next 3Y36.39%
EBIT Next 5Y33.79%
FCF growth 1Y43.52%
FCF growth 3Y13.38%
FCF growth 5Y15.95%
OCF growth 1Y42.59%
OCF growth 3Y13.19%
OCF growth 5Y15.53%

BROADCOM INC / AVGO FAQ

Can you provide the ChartMill fundamental rating for BROADCOM INC?

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


What is the valuation status for AVGO stock?

ChartMill assigns a valuation rating of 3 / 10 to BROADCOM INC (AVGO). This can be considered as Overvalued.


What is the profitability of AVGO stock?

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


Can you provide the financial health for AVGO stock?

The financial health rating of BROADCOM INC (AVGO) is 5 / 10.


What is the earnings growth outlook for BROADCOM INC?

The Earnings per Share (EPS) of BROADCOM INC (AVGO) is expected to grow by 40.29% in the next year.