Broadcom Inc
Exchange: NASDAQSector: TechnologyIndustry: Semiconductors
Broadcom Inc., a Delaware corporation headquartered in San Jose, CA, is a global technology leader that designs, develops and supplies a broad range of semiconductor and infrastructure software solutions. Broadcom's category-leading product portfolio serves critical markets including data center, networking, enterprise software, broadband, wireless, storage and industrial. Our solutions include data center networking and storage, enterprise, mainframe and cyber security software focused on automation, monitoring and security, smartphone components, telecoms and factory automation.
Did you know?
AVGO's revenue grew at a 18.9% CAGR over the last 6 years.
Current Price
$314.55
+0.34%GoodMoat Value
$220.56
29.9% overvaluedProfile
Valuation (TTM)
Market Cap$1.49T
P/E59.72
EV$1.58T
P/B18.35
Shares Out4.74B
P/Sales21.84
Revenue$68.28B
EV/EBITDA41.35
Broadcom Inc (AVGO) Stock Analysis
GoodMoat Analysis
Broadcom is a dominant semiconductor and infrastructure software company with a strong competitive moat, scoring an estimated 7/14. However, its current valuation appears extremely high, trading at a P/E of 60.5 and a price significantly above the GoodMoat target, indicating a low margin of safety.
Read full analysis
Broadcom Inc. designs and supplies a broad range of semiconductor and infrastructure software solutions critical to data centers, networking, and broadband. Applying the GoodMoat framework, the company demonstrates a durable competitive advantage, with an estimated Moat Score of 7/14. This is supported by several criteria, including high switching costs through mission-critical hardware and software, proprietary technology leadership in areas like networking ASICs, strategic partnerships (notably with Apple), and a founder-led culture with a proven acquisition track record. Its financial quality is strong, with a robust ROE of 30.7%, an operating margin of 39.9%, and a profit margin of 36.6%. The business passes the Moat & Quality Gate for further analysis. The primary concern is valuation. At a P/E of 60.5 and a stock price of $318.81, it trades far above the GoodMoat target of $220.56, suggesting a negative margin of safety. The free cash flow yield of 1.8% is also low. According to the Decision Framework, this combination of a strong business but extreme valuation places it in the 'With Caution' category. It requires a very high-conviction view on future execution to justify the price, making it unfavourable for a value investor seeking a margin of safety today. Analysis based on data as of 2024-05-15.
Market Cap$1.49T
Current Price$314.55
P/E Ratio59.72
Forward P/E—
PEG Ratio1.84
EPS$4.77
Book Value$17.15
P/B Ratio18.35
AVGO Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 19.3% FCF growth (CAGR)
Cash vs Debt
Net Debt: 49.0B
Revenue
22.6B
FY19
23.9B
FY20
27.4B
FY21
33.2B
FY22
35.8B
FY23
51.6B
FY24
63.9B
FY25
Net Income
2.7B
FY19
3.0B
FY20
6.7B
FY21
11.5B
FY22
14.1B
FY23
5.9B
FY24
23.1B
FY25
AVGO 52-Week Range
$152.91
$411.36
50-Day MA: $324.29200-Day MA: $326.64
Did you know?
AVGO's revenue grew at a 18.9% CAGR over the last 6 years.
Broadcom Inc (AVGO) Financial Summary
Broadcom Inc (AVGO) is a Technology company in the Semiconductors industry, listed on NASDAQ. The stock currently trades at $314.55 with a market capitalization of $1.49T.
Key valuation metrics include a P/E ratio of 59.72, price-to-book ratio of 18.35, and EPS of $4.77. The company reports a profit margin of 36.6% and return on equity of 30.7%.
AVGO Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $1.49T |
| P/E Ratio | 59.72 |
| EPS | $4.77 |
| P/B Ratio | 18.35 |
| P/S Ratio | 21.84 |
| EV/EBITDA | 41.35 |
| Dividend Yield | 0.75% |
| Profit Margin | 36.6% |
| Return on Equity | 30.7% |
| Debt/Equity | 0.80 |
AVGO Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $22.60B | $2.72B |
| FY20 | $23.89B | $2.96B |
| FY21 | $27.45B | $6.74B |
| FY22 | $33.20B | $11.49B |
| FY23 | $35.82B | $14.08B |
| FY24 | $51.57B | $5.89B |
| FY25 | $63.89B | $23.13B |
Broadcom Inc (AVGO) Valuation
Based on GoodMoat's DCF model, Broadcom Inc has a fair value estimate of $220.56. At the current price of $314.55, the stock appears 42.6% overvalued relative to our intrinsic value estimate.
AVGO Quality Indicators
Broadcom Inc maintains a profit margin of 36.6% and an operating margin of 39.9%. Return on equity stands at 30.7%. The current ratio is 1.71. Debt-to-equity ratio is 0.80.
About Broadcom Inc
Broadcom Inc., a Delaware corporation headquartered in San Jose, CA, is a global technology leader that designs, develops and supplies a broad range of semiconductor and infrastructure software solutions. Broadcom's category-leading product portfolio serves critical markets including data center, networking, enterprise software, broadband, wireless, storage and industrial. Our solutions include data center networking and storage, enterprise, mainframe and cyber security software focused on automation, monitoring and security, smartphone components, telecoms and factory automation.
AVGO Free Cash Flow
Broadcom Inc generated $26.91B in trailing twelve-month free cash flow, representing an FCF yield of 1.80%. This low FCF yield may reflect heavy reinvestment or growth spending.
AVGO Shares Outstanding
Broadcom Inc has 4.74 billion shares outstanding at a share price of $314.55, giving it a market capitalization of $1.49T.
AVGO Recent Insider Trades
Recent insider transactions at Broadcom Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| SAMUELI HENRY | SELL | 34,308 | $10.89M |
| Velaga S. Ram (President, ISG) | SELL | 360 | $115957.44 |
| Spears Kirsten M. (CFO & Chief Accounting Officer) | SELL | 120 | $38575.56 |