AVGO logo
Broadcom Inc.
AVGO
342.46 (1.01%) 3.47
Information Technology
Semiconductors and Semiconductor Equipment
Broadcom Inc. designs develops and supplies various semiconductor devices and infrastructure software solutions worldwide. The company operates in two segments Semiconductor Solutions and Infrastructure Software. It provides Ethernet switching and routing custom silicon solutions optical and copper physical layer devices and fiber optic transmitter and receiver components; set-top box system-on-chips (SoCs) data over cable service interface specifications cable modem and networking infrastructure DSL access multiplexer/PON optical line termination products and Wi-Fi access point SoCs as well as digital subscriber line (DSL)/cable passive optical networking (PON) gateways; and fiber optic components and mobile device connectivity solutions. The company also offers RF front end modules and filters; Wi-Fi Bluetooth and global positioning system/global navigation satellite system SoCs; custom touch controllers; inductive charging application specific integrated circuits; serial attached small computer system interface and redundant array of independent disks controllers and adapters peripheral component interconnect express switches fiber channel host bus adapters read channel based SoCs custom flash controllers and preamplifiers; and optocouplers industrial fiber optics industrial and medical sensors motion control encoders and subsystems light emitting diodes ethernet PHYs switch ICs and camera microcontrollers. Its products are used in various applications in enterprise and data center networking including artificial intelligence networking and connectivity home connectivity set-top boxes broadband access telecommunication equipment smartphones and base stations data center servers and storage systems factory automation power generation and alternative energy systems and electronic displays. Broadcom Inc. was founded in 1961 and is headquartered in Palo Alto California.

Quality Checklist 7/8

ROIC > 10%
Debt/Equity < 1
Current Ratio > 1
Quick Ratio > 1
Net Margin > 10%
Past Net Income CAGR > 0%
Est. EPS Growth > 5%
5Y Shares Out Change < 0%
0.0%of Portfolio

My holdings

Day change:
Total change:
Shares:
Cost basis:
Market cap: $1.62(T)
EV: $1.67(T)
Total Equity: $73.28(B)
Earnings date: Dec-11-2025
P/E: 84.98
Forward P/E: 50.73
P/FCF: 64.86
P/S: 26.86
P/B: 22.07
EPS: $4.0
EPS (fwd): $6.8
FCF/share: $5.3
Revenue/share: $12.8
Book value/share: $15.5
ROIC: 13.9%
ROA: 11.3%
ROE: 27.3%
Debt/Equity: 0.88
Current Ratio: 1.50
Gross margin: 77.2%
Operating margin: 39.0%
Net margin: 31.6%
Dividend/share: $2.4
Div. yield: 0.69%

AVGO Valuation & Price Targets

Current Price
$342

Favorite Valuation Methods

More Valuation Methods

DCF (simple)
N/A
N/A
DCF (exit mult.)
N/A
N/A
DDM
N/A
N/A
EPS growth
N/A
N/A
Revenue growth
N/A
N/A
Peter Lynch FV
N/A
N/A
Graham No.
N/A
N/A

PEvaluation

13% undervalued
Low
$290
Mid
$386
High
$483
Current price
$342
Fair P/E
Margin of safety
EPS
Market Model
Shares outstan...ROICRevenue growthDebt/FCFAssets/Liabili...
Economic moat: Very wide

EPS Estimates

LowAvgHigh#
FY+16.76.87.041
FY+28.19.310.444
FY+39.712.215.930
FY+413.115.818.95
FY+522.222.222.21

Analyst Price Targets

17% undervalued
Low
$273
Mid
$400
High
$480
Current price
$342

Analyst Recommendations

Strong Buy7
Buy36
Hold3
Sell0
Strong Sell0

2-stage DCF

First Stage Duration: 5 Years
Starting Free Cash Flow
First Stage Growth Rate
LowMidHigh
Terminal Growth Rate
LowMidHigh
Discount Rate

Discounted Cash Flow

Forecast years: 5 Years
Terminal Growth Rate
LowMidHigh
Discount Rate
Free cash flow estimates:
Y+1 est.
Y+2 est.
0.00%
Y+3 est.
0.00%
Y+4 est.
0.00%
Y+5 est.
0.00%

Discounted Cash Flow (exit mult.)

Forecast years: 5 Years
Exit FCF Multiple
LowMidHigh
Discount Rate
Free cash flow estimates:
Y+1 est.
Y+2 est.
0.00%
Y+3 est.
0.00%
Y+4 est.
0.00%
Y+5 est.
0.00%

Dividend Discount Model

Annual Dividend
First Stage Length (Years): 0 Years
First Stage Growth Rate
Final Growth Rate
Discount Rate

EPS Growth

Forecast years: 5 Years
Starting EPS
EPS Growth Rate
LowMidHigh
Final P/E
LowMidHigh
Discount Rate

Revenue Growth Valuation

Forecast Years: 10 Years
Base Revenue
Revenue Growth Rate
LowMidHigh
Final Net Margin
LowMidHigh
Final P/E Ratio
LowMidHigh
Discount Rate

Peter Lynch Fair Value

Earnings Per Share
Growth Rate

Graham Formula

Earnings Per Share
EPS Growth (7-10 years)
Government Bond Rate