AVGO

Broadcom Inc.

Fundamental data last updated:May 12, 2026

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company profile

SECTOR

Technology

industry

Semiconductors

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

06/03/2026

Business Summary

Broadcom, Inc. is a global technology company, which designs, develops and supplies semiconductor and infrastructure software solutions. The company is headquartered in San Jose, California and currently employs 19,000 full-time employees. The firm operates through four segments: Wired Infrastructure, Wireless Communications, Enterprise Storage, and Industrial & Other. The company offers a range of products that are used in end-products, such as enterprise and data center networking, home connectivity, set-top boxes, telecommunication equipment, smartphones, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. Its product portfolio ranges from discrete devices to complex sub-systems that include multiple device types, and also includes firmware for interfacing between analog and digital systems. Its products include mechanical hardware that interfaces with optoelectronic or capacitive sensors.

 


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VALUATION

P/E

81.71

Market Cap ($M USD)

$2.04T

Forward P/E

17.37

PEG

0.05

PRICE TO SALES

29.84

PRICE TO BOOK

25.55

EV / EBITDA

53.69

5-Year Average P/E

Free Cash Flow Yield

1.42%

DCF Value

$205.01

Graham Number

$44.68

Price to FCF

70.49

EV to FCF

72.28

Earnings Yield

1.22%

FCF Yield

1.42%

DIVIDEND

Yield

0.58%

Annual Payout

$2.48

Payout Ratio

45.87%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$5.27

Next Year EPS Growth Estimate

$24.78

Next Year Revenue Growth Estimate

$139.00B

Return on Equity (ROE)

32.85%

FREE CASH FLOW

Operating Margin

40.87%

Debt-to-Equity

0.80

Piotroski F-Score

6

Altman Z-Score

14.67

Return on Invested Capital (ROIC)

18.23%

Current Ratio

1.90

Quick Ratio

1.73

Net Debt to EBITDA

1.33

Interest Coverage

9.21

Gross Profit margin

67.09%

FCF PER SHARE

$6.10

REVENUE PER SHARE

$14.40

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Gainseekers Quantitative Analysis

Summary

Broadcom Inc. is priced for perfection, with a staggering Price/Earnings ratio of 81.64, indicating high market expectations. Despite this, the Forward P/E of 17.35 suggests anticipated earnings growth, aligning with a robust Altman Z-score of 14.67, which signals financial stability. However, the stock’s Snapshot Price traded significantly above its DCF Value, hinting at potential overvaluation. The Earnings Yield of 1.22% is underwhelming, raising questions about immediate returns. Overall, while the company exhibits strong growth prospects, its current valuation may not offer a margin of safety for value investors.

AI Exposure / Tech Reliance

Positioned within the semiconductor industry, Broadcom is well-placed to capitalize on AI and tech advancements. Its robust operating margin of 40.87% indicates efficient operations, crucial for adapting to rapid technological shifts. The company's strategic focus on high-margin products ensures resilience in a competitive tech landscape.

The Bull Case

For GARP investors, Broadcom's appeal lies in its impressive ROIC of 18.23%, reflecting superior capital efficiency. The Piotroski F-Score of 6 indicates solid financial health, while a strong operating margin underscores its pricing power. Despite a low FCF Yield, the company's ability to generate cash through high-margin operations makes it an attractive long-term play.

The Bear Case

The stock's high valuation multiples, such as a Price/Sales ratio of 29.82 and Price/Book of 25.52, suggest it is priced at a premium, potentially limiting upside. With a Price to FCF of 70.42, cash flow generation appears weak relative to its market cap. Additionally, trading near its 52-week high, the stock may be technically overextended, posing a risk for new investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$443.72

Institutional Ownership %

1-Year Beta

1.44

Insider Buying % (6 Mo)

Distance to 52-Week High

1.69%

Distance to 52-Week Low

49.84%

EARNINGS SURPRISE %

0.99%

50-DAY SMA

$358.86

200-DAY SMA

$343.55

⚠️ 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.