BROADCOM INC (AVGO) Fundamental Analysis & Valuation

NASDAQ:AVGO • US11135F1012

Current stock price

310.51 USD
-9.33 (-2.92%)
At close:
313.1 USD
+2.59 (+0.83%)
After Hours:

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.
  • In the past year AVGO had a positive cash flow from operations.
  • AVGO had positive earnings in each of the past 5 years.
  • AVGO had a positive operating cash flow in each 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B 20B 25B

1.2 Ratios

  • AVGO has a better Return On Assets (14.70%) than 87.83% of its industry peers.
  • AVGO has a better Return On Equity (31.27%) than 92.17% of its industry peers.
  • With an excellent Return On Invested Capital value of 11.54%, AVGO belongs to the best of the industry, outperforming 85.22% of the companies in the same industry.
  • AVGO had an Average Return On Invested Capital over the past 3 years of 10.89%. This is in line with the industry average of 10.52%.
  • 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.
  • Looking at the Operating Margin, with a value of 41.58%, AVGO belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
  • In the last couple of years the Operating Margin of AVGO has grown nicely.
  • AVGO's Gross Margin of 67.93% is amongst the best of the industry. AVGO outperforms 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

  • AVGO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • The number of shares outstanding for AVGO has been increased compared to 1 year ago.
  • Compared to 5 years ago, AVGO has more shares outstanding
  • AVGO has a better debt/assets ratio than last year.
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 10.91. This indicates that AVGO is financially healthy and has little risk of bankruptcy at the moment.
  • AVGO has a Altman-Z score of 10.91. This is in the better half of the industry: AVGO outperforms 73.91% of its industry peers.
  • 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.
  • Looking at the Debt to FCF ratio, with a value of 2.28, AVGO is in the better half of the industry, outperforming 65.22% of the companies in the same industry.
  • A Debt/Equity ratio of 0.80 indicates that AVGO is somewhat dependend on debt financing.
  • With a Debt to Equity ratio value of 0.80, AVGO is not doing good in the industry: 79.13% of the companies in the same industry are doing better.
  • Although AVGO'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 10.91
ROIC/WACC1.02
WACC11.35%
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's Current ratio of 1.90 is on the low side compared to the rest of the industry. AVGO is outperformed by 78.26% of its industry peers.
  • A Quick Ratio of 1.73 indicates that AVGO should not have too much problems paying its short term obligations.
  • The Quick ratio of AVGO (1.73) is worse than 66.09% of its industry peers.
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

10

3. AVGO Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 35.74% over the past year.
  • The Earnings Per Share has been growing by 25.23% on average over the past years. This is a very strong growth
  • AVGO shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.22%.
  • Measured over the past years, AVGO shows a very strong growth in Revenue. The Revenue has been growing by 21.74% on average per year.
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
  • Based on estimates for the next years, AVGO will show a very strong growth in Revenue. The Revenue will grow by 30.05% on average per year.
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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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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5

4. AVGO Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 42.71, the valuation of AVGO can be described as expensive.
  • Based on the Price/Earnings ratio, AVGO is valued a bit cheaper than 67.83% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.23. AVGO is valued rather expensively when compared to this.
  • A Price/Forward Earnings ratio of 21.57 indicates a rather expensive valuation of AVGO.
  • AVGO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AVGO is cheaper than 78.26% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of AVGO to the average of the S&P500 Index (23.28), we can say AVGO is valued inline with the index average.
Industry RankSector Rank
PE 42.71
Fwd PE 21.57
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AVGO indicates a somewhat cheap valuation: AVGO is cheaper than 61.74% of the companies listed in the same industry.
  • AVGO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AVGO is cheaper than 65.22% of the companies in the same industry.
Industry RankSector Rank
P/FCF 50.85
EV/EBITDA 40.98
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.
  • The excellent profitability rating of AVGO may justify a higher PE ratio.
  • A more expensive valuation may be justified as AVGO's earnings are expected to grow with 37.71% in the coming years.
PEG (NY)0.82
PEG (5Y)1.69
EPS Next 2Y45.28%
EPS Next 3Y37.71%

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6

5. AVGO Dividend Analysis

5.1 Amount

  • AVGO has a yearly dividend return of 0.81%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.50, AVGO pays a better dividend. On top of this AVGO pays more dividend than 83.48% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, AVGO's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.81%

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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)11.45%
Div Incr Years14
Div Non Decr Years14
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

  • AVGO pays out 45.87% of its income as dividend. This is a bit on the high side, but may be sustainable.
  • The dividend of AVGO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP45.87%
EPS Next 2Y45.28%
EPS Next 3Y37.71%
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 (3/20/2026, 8:00:01 PM)

After market: 313.1 +2.59 (+0.83%)

310.51

-9.33 (-2.92%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)03-04
Earnings (Next)06-03
Inst Owners79.08%
Inst Owner Change1.08%
Ins Owners1.91%
Ins Owner Change0.56%
Market Cap1.47T
Revenue(TTM)68.28B
Net Income(TTM)24.97B
Analysts84.83
Price Target462.47 (48.94%)
Short Float %1.03%
Short Ratio1.8
Dividend
Industry RankSector Rank
Dividend Yield 0.81%
Yearly Dividend2.36
Dividend Growth(5Y)11.45%
DP45.87%
Div Incr Years14
Div Non Decr Years14
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)-0.7%
PT rev (3m)12.44%
EPS NQ rev (1m)11.43%
EPS NQ rev (3m)13.03%
EPS NY rev (1m)0.64%
EPS NY rev (3m)8.24%
Revenue NQ rev (1m)7.34%
Revenue NQ rev (3m)9.55%
Revenue NY rev (1m)7.6%
Revenue NY rev (3m)19.64%
Valuation
Industry RankSector Rank
PE 42.71
Fwd PE 21.57
P/S 21.53
P/FCF 50.85
P/OCF 49.53
P/B 18.41
P/tB N/A
EV/EBITDA 40.98
EPS(TTM)7.27
EY2.34%
EPS(NY)14.4
Fwd EY4.64%
FCF(TTM)6.11
FCFY1.97%
OCF(TTM)6.27
OCFY2.02%
SpS14.42
BVpS16.87
TBVpS-10.19
PEG (NY)0.82
PEG (5Y)1.69
Graham Number52.53
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 10.91
F-Score8
WACC11.35%
ROIC/WACC1.02
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 / 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 5 / 10 to BROADCOM INC (AVGO). This can be considered as Fairly Valued.


Can you provide the profitability details for BROADCOM INC?

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


How financially healthy is BROADCOM INC?

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


Can you provide the dividend sustainability for AVGO stock?

The dividend rating of BROADCOM INC (AVGO) is 6 / 10 and the dividend payout ratio is 45.87%.