AVGO

Broadcom Inc.

Fundamental data last updated:July 16, 2026

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company profile

SECTOR

Technology

industry

Semiconductors

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

09/03/2026

Business Summary

Broadcom Inc. is a prominent global technology enterprise focused on the innovation, development, and supply of advanced semiconductor solutions and critical infrastructure software. The company's headquarters are situated in San Jose, California, and it maintains a significant team of 19,000 full-time staff. Its operations are segmented into four primary divisions: Wired Infrastructure, Wireless Communications, Enterprise Storage, and Industrial & Other. Broadcom’s diverse product range is integrated into numerous end-user technologies, including enterprise and data center networking, residential internet solutions, digital television receivers, telecommunications apparatus, mobile phones, data center servers and storage architectures, industrial automation, alternative and power generation systems, and electronic display technologies. The company's product offerings extend from fundamental discrete components to intricate sub-systems incorporating various device categories. This also encompasses specialized firmware designed to facilitate interaction between analog and digital systems, alongside mechanical hardware engineered to connect with optoelectronic or capacitive sensing technologies.

 


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VALUATION

P/E

60.54

Market Cap ($M USD)

$1.78T

Forward P/E

10.68

PEG

0.02

PRICE TO SALES

23.57

PRICE TO BOOK

20.24

EV / EBITDA

43.41

5-Year Average P/E

Free Cash Flow Yield

1.84%

DCF Value

$195.10

Graham Number

$50.67

Price to FCF

54.30

EV to FCF

55.68

Earnings Yield

1.65%

FCF Yield

1.84%

DIVIDEND

Yield

0.68%

Annual Payout

$2.54

Payout Ratio

40.12%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$6.18

Next Year EPS Growth Estimate

$35.00

Next Year Revenue Growth Estimate

$139.00B

Return on Equity (ROE)

36.40%

FREE CASH FLOW

Operating Margin

43.66%

Debt-to-Equity

0.80

Piotroski F-Score

6

Altman Z-Score

12.95

Return on Invested Capital (ROIC)

20.55%

Current Ratio

2.24

Quick Ratio

2.01

Net Debt to EBITDA

1.08

Interest Coverage

10.96

Gross Profit margin

66.96%

FCF PER SHARE

$6.90

REVENUE PER SHARE

$15.90

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Gainseekers Quantitative Analysis

Summary

Broadcom Inc. appears to be significantly overvalued when juxtaposed against its DCF Value and Graham Number, suggesting a market exuberance that may not be justified by fundamentals. The Forward P/E of 10.79 indicates expectations of robust future earnings growth, yet the current Earnings Yield of 1.63% is underwhelming, hinting at a potential disconnect between price and intrinsic value. However, the Altman Z-score of 12.68 signals a fortress-like financial stability, reducing bankruptcy risk. Despite these mixed signals, the stock’s valuation metrics suggest a cautious approach for value investors.

AI Exposure / Tech Reliance

Positioned at the heart of the semiconductor industry, Broadcom is well-poised to capitalize on AI and tech advancements. Its robust operating margin of 43.66% reflects an ability to innovate and adapt to rapidly changing tech landscapes. As AI demands more sophisticated chips, Broadcom's strategic positioning could enhance its market share.

The Bull Case

For the discerning GARP investor, Broadcom offers compelling reasons to buy. The ROIC of 20.55% underscores exceptional capital efficiency, translating into superior returns on invested capital. A Piotroski F-Score of 6 indicates solid financial health, while a Gross Profit Margin of 66.96% highlights strong pricing power. Despite a modest FCF Yield of 1.82%, the company's ability to generate cash remains robust, suggesting a well-managed operation with potential for growth.

The Bear Case

Yet, the stock is not without its pitfalls. The Price/Book ratio of 20.45 and Price/Sales of 23.81 suggest an overvaluation that could deter value investors. Additionally, the EV to EBITDA of 43.84 raises concerns about the company's ability to generate sufficient earnings relative to its enterprise value. With the stock trading extended above its 50-Day SMA, there is a risk of technical overextension, making it vulnerable to corrections.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$498.19

Institutional Ownership %

1-Year Beta

1.46

Insider Buying % (6 Mo)

Distance to 52-Week High

32.39%

Distance to 52-Week Low

27.90%

EARNINGS SURPRISE %

1.67%

50-DAY SMA

$409.43

200-DAY SMA

$361.45

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.