Broadcom Inc. (AVGO) Stock Analysis

Price updated yesterday · SEC data refreshed 3 months ago ⓘ · Not investment advice

Broadcom Inc.

AVGO Technology Semiconductors📄 SEC filings ↗ CUSIP 11135F101
Valuation N/A
Long-term trend (200d) 4% below 200-day Risk 28/100 Moderate
▾ What's in the 28/100 risk score? (higher = riskier)
Fundamental health (43%) 22/100 → +9.4
leverage 20/100 · FCF trend 25/100 · Altman Z not scored — input unavailable (see Financial Health)
Smart money (short interest + insider buying) (31%) 31/100 → +9.7
Macro backdrop (VIX, curve, credit, fear/greed + week-over-week momentum) (26%) 33/100 → +8.5
Total28/100

Contributions (weight × component score) sum to the total. This near-term score now includes fundamental health (leverage, FCF trend). It excludes the Altman Z score, whose retained-earnings input this filer does not report separately. See the Financial Health section for the full balance-sheet read.

💵 Price $339.27 · yesterday 📄 Financials SEC EDGAR · refreshed 3 months ago
📍 START HERE

How to read AVGO

We are not publishing an intrinsic value for this one — the section below says exactly why. Everything on this page that comes straight from the filings and the tape is still here; treat the missing valuation as a known gap, not as a verdict on the business.

Where to start — the sections that matter most for this stock
  1. 1 Reported earnings & margins ↓
    What the company actually reported — unaffected by the valuation being held.
  2. 2 Balance sheet & book value ↓
    Assets, liabilities and equity as filed.
  3. 3 Who's selling & betting against it ↓
    Insider and short-interest behaviour needs no valuation model.
Or — what are you trying to decide?
A note on process: fear-driven decisions — including fear of missing out — tend to be the expensive ones. A stock up 10% a day for three days is excitement, not evidence. Whichever reader you are, the data below is there to be checked before anything is decided.
🚀
"It's surging — should I chase it?"
The momentum / FOMO trade. Before you chase, see whether the people who know it best are quietly selling into the rally.
🏷️
"Is it a cheap bargain?"
The deep-value trade. How far below assets and our value it trades — and whether it's cheap for a reason.
ⓘ A share-count quirk blocked the per-share math

The share count we read for AVGO looks wrong — common for multi-class / founder-controlled filers that report shares per share-class. That makes per-share figures (including intrinsic value) misleading, so we suppressed them. The company's total financials below are sound.

What to use instead: Lean on the totals — revenue, net income, cash flow — and the balance sheet. Multi-class share counts are being corrected; once fixed, the per-share valuation returns automatically.

This note is only about the single DCF fair-value number — AVGO's full financial statements, health scores, and written analysis are all below.

ⓘ Why does AVGO trade at $339.27?

Broadcom Inc. has 4.85 billion shares outstanding. At $339.27 per share, the market values all outstanding AVGO equity at $1.65 trillion. That's market capitalization, not enterprise value — enterprise value also accounts for debt and cash (AVGO carries little or no debt, so the two are close here). The share price by itself tells you almost nothing — a company can pick any share price by splitting or issuing more shares. What matters is the total value (Market Cap?Market Cap — The total dollar value the market is assigning to the entire company.
Why it matters: This is the number that actually matters when comparing companies. Two companies with the same business but different share counts have the same market cap.
Reference: Mega cap >$200B · Large $10–200B · Mid $2–10B · Small $300M–2B · Micro <$300M
Full explanation →) compared to what the business actually produces. This page values AVGO in Per Share?Per Share — A company-level figure divided by total shares — what one share represents.
Why it matters: Per-share metrics are the only way to fairly compare two companies with different share counts.
Full explanation → economics — what each share represents of the underlying business. Play with the share-price calculator on the homepage →

Loading insider & short-seller data…
Checking filings for failure warnings…
VALUATION RANGE — CROSS-METHOD CHECK

Football field: where does the price sit?

Different valuation methods produce different fair-value ranges depending on assumptions. Plotting them together lets you see at a glance whether the current price is reasonable across approaches, or only one specific lens.

$39$119$200$280$360Current price $339.27EV / Sales (p25→p75)$42.83$187.64
The current price sits ABOVE the high end of every method. The market is paying a premium to all of these lenses — it expects materially better growth or margins than the models assume.

Industry multiples sourced from: industry: Semiconductors. See the Peer Basket section below for the peer comparison and its limited-comparables caveat.

PEER BASKET — LIMITED COMPARABLES

⚠ We found only 1 genuine same-industry (Semiconductors) comparable — fewer than the 4 we require for a reliable median. So we do not derive a peer-implied share value here. Read the multiples as rough context only.

How does AVGO stack up against its closest peers?

Ideally we compare AVGO only to same-industry peers, but too few exist in our universe right now, so the basket below mixes in broader-sector names. Treat the multiples as rough context, not a valuation. For a leveraged business, EV/EBIT and FCF yield (both in the table) are usually more reliable than EV/Sales, because revenue multiples ignore differences in margins and debt.

▾ What's "EV / Sales" in plain English?

EV (Enterprise Value) = market cap + total debt − cash. It's "what you'd pay to buy the entire company outright" — you pay the market cap to shareholders and take over their debt, but you keep their cash. EV is fairer than market cap alone because it includes the debt the new owner inherits.

EV / Sales = EV ÷ annual revenue. So "2.5×" means investors pay $2.50 of enterprise value per $1 of yearly sales. Higher = market is paying more per dollar of sales (usually because they expect future growth or fat margins).

p25 / median / p75 are the 25th, 50th (middle), and 75th percentile of the peers' multiples. Half the peers fall between p25 and p75. The median (p50) is the typical peer — that's the benchmark we compare to.

What peers trade at (p25 / median / p75)

Bold middle number = median peer. Half the peers trade above it, half below. Based on the single available name (broad — see caveat) we could price — with one company there is no median, so read it as a single data point.

Peer-implied value check
We're not showing a peer-implied price for AVGO: with only 1 genuine same-industry comparable, a median built partly from broader-sector names would be misleading. Lean on the DCF above; use the multiples table only as loose context.

⚠️ Important caveat: peer multiples only work if the peers are genuinely comparable. Always check the peer list below — if the auto-picker grabbed micro-caps or unrelated businesses, the comparison is noise. A medical-device giant priced against tiny biotech startups won't produce a useful signal.

▾ View peer list (1)
Ticker Company Industry Mcap EV/Sales EV/GPEV/EBIT FCF Yield
TSM TAIWAN SEMICONDUCTOR MANUFACTURING Semiconductors $2.25T suspect 25.5x 45.4x55.8x 1.2%
FINANCIAL HEALTH SCREENS

Quality & solvency checks

Cheap stocks can be cheap for a reason. These screens warn when a low valuation comes paired with structural fragility.

Altman Z-Score?Altman Z-Score — A bankruptcy-risk score combining 5 financial ratios into one number. Predictive of bankruptcy within 2 years.
Why it matters: Cheap-looking stocks (low P/E or P/B) often have low Z-scores because the market knows the company is dying. Z-score warns you before you fall into a value trap.
Reference: > 3.0 = safe zone · 1.81–3.0 = grey zone · < 1.81 = distress zone
Full explanation →
n/a
Not reliably computable

We can't produce a trustworthy Altman Z here: retained earnings weren't separately reported in our data, so a core input would have to be fabricated. Rather than show a categorical "distress" verdict from an invented number, we mark it unavailable. Judge financial health from the leverage, cash position, and the measurable Piotroski checks instead.

Piotroski F-Score?Piotroski F-Score — A 9-point quality checklist scoring profitability, leverage, and operating efficiency.
Why it matters: High score = fundamentals improving. Low score = deteriorating. Especially powerful for filtering cheap stocks: cheap + high F-score historically outperforms; cheap + low F-score is often a value trap.
Reference: 7–9 = strong · 4–6 = mediocre · 0–3 = weak
Full explanation →
8 / 9
Strong
▾ The checks — what passed, what didn't (and what we couldn't measure)
  • ✓ Positive net income
    Net income $23,126.0M in FY2025.
  • ✓ Positive operating cash flow
    Operating cash flow $27,537.0M (was $19,962.0M the prior year).
  • ✓ Cash flow backs up reported profit
    Operating cash flow $27,537.0M vs net income $23,126.0M.
  • ✓ Return on assets improving
    Return on assets 13.5% vs 3.6% a year ago.
  • ✓ Debt load (vs assets)
    The filing reports no interest-bearing debt in either year (total assets $171,092.0M).
  • ✓ Short-term liquidity (current ratio)
    Current ratio 1.71x vs 1.17x a year ago.
  • ✗ Share count (dilution)
    Share count rose 1.6% (4,778.0M → 4,853.0M year-over-year).
    Why this matters: Issuing lots of new shares splits the pie into more pieces, shrinking your slice. Stable or falling share count protects existing owners.
  • ✓ Pricing power (gross margin)
    Gross margin 67.8% vs 63.0% a year ago.
  • ✓ Sales per asset (asset turnover)
    Asset turnover 0.37x vs 0.31x a year ago.

Missing data is never counted as a pass or a fail — it's shown as n/a and excluded from the denominator. Each check compares the company against its own prior year.

INTERACTIVE — TWEAK YOUR ASSUMPTIONS

What if you assume different inputs?

Here's where we land — and what happens if you change the assumptions. Drag the sliders to set your own Discount Rate?Discount Rate — The annual return you demand for taking single-stock risk instead of buying a safe Treasury or index fund.
Why it matters: Higher discount rate = stricter valuation (a stock has to produce more cash to be worth holding). Lower = more generous.
Reference: 8–12% is standard · 9–10% matches S&P 500 historical return · Below 7% is illogical for single-stock risk
Full explanation → (the annual return you demand for single-stock risk) and terminal growth; the value updates live so you can see whether the stock looks cheaper or richer. The discount rate starts at 10.0%, the figure our model used for AVGO. Open Advanced to also change beta, growth and the rate path.

Note: no headline intrinsic value is published for this stock (the valuation is held for a data-quality reason — see the notes above). The calculator below is a what-if tool: the values it produces are your assumptions played out, not our estimate.

4.5% (risk-free)9-10% normal18% (deep-risk)
0%2-3% (GDP)5% (rarely sustainable)

A full intrinsic value isn't shown for AVGO because the valuation is currently held for a data-quality reason (see the guardrail notes above). The reverse-DCF reading still works — it needs only the price and cash flow — but we won't publish a forward value until the underlying data passes our checks.

For comparison — the revenue growth today's price already assumes
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—

—

⚙ Advanced — tinker with every input (beta, growth, rate path, margin → full intrinsic value)
Where the discount rate comes from — discount rate = risk-free + beta × equity-risk-premium
What you'd earn risk-free from government bonds — the floor under every other rate. Slide it down to model the market expecting rate cuts (value rises); up for higher-for-longer.
The extra yearly return investors demand for owning stocks instead of safe bonds — the price of risk. History runs ~4.5–6.5%; we default to 5.5% (slightly conservative). It's an estimate, not a law — lower it if you think equities are less risky than that.
Inflation reduces the purchasing power of a nominal return: a 9% gain at 3% inflation is about 6% in real terms. The intrinsic value above is already in today's dollars (a nominal DCF carries inflation in both the growth and the discount rate), so this switch does not change the value — it restates the return in real terms.
Higher beta → higher discount rate (sets the rate above). 1.0 = moves with the market.
What you think AVGO can grow revenue for ~5 years, then fades to terminal.
For a pre-profit company: the % of revenue that eventually becomes free cash flow once mature. (Our published value uses the sector norm.)
All inputs start at the values our model used.

    Copy shareable link to this scenario →

    Price$339.27
    Model IVNot applicable — DCF couldn't price this stock. The other valuation lenses on this page (reverse-DCF, peers, sector lens — whichever apply to this filer) carry the read instead.

    A standard DCF?DCF — Discounted Cash Flow — sums up all future cash a business will produce, adjusted for the fact that future dollars are worth less than dollars today.
    Why it matters: It is the most fundamentally honest valuation method when applicable — but only works for companies with predictable, positive cash flow.
    Reference: Best for: mature, profitable businesses. Fails for: pre-profit growth, banks, REITs.
    Full explanation →     valuation is not meaningful for Broadcom due to a data/units issue, likely a share-count mismatch, which leads to an extreme valuation output. While the model shows a significantly lower intrinsic value?Intrinsic Value — Our DCF model's estimate of what each share is mathematically worth based on projected cash flows.
    Why it matters: Compare to current price. Below IV = potentially undervalued. Above IV = priced for growth that must actually happen.
    Reference: Model-derived; quality depends on data and assumptions.
    Full explanation →    , the market is pricing in expectations for continued revenue growth (23.5%/yr) and expanding gross margins (67.8%). Investors are likely betting on Broadcom's strategic acquisitions and its position in critical technology infrastructure. The primary quantifiable risk is the extreme valuation (P/IV?P/IV — Current price divided by our intrinsic value estimate.
    Why it matters: Below 1.0 = stock trades below model fair value. Above 1.0 = stock trades above model fair value (must justify with growth that exceeds our assumptions).
    Reference: < 0.85 = potentially undervalued · 0.85–1.10 = fair · > 1.10 = premium
    Full explanation →     8.3337x) indicated by the model, suggesting the market may be assigning value to future opportunities not captured by historical cash flows.

    ⚠️ Revenue/margin projection model used - trailing FCF may understate growth runway at current scale.

    As of 3 months ago

    ANATOMY

    Anatomy of a share

    What you're buying per share. Bars are at the same scale so you can see the relative size of revenue, costs, cash flow, and debt — not just read them in a table.

    AVGO Broadcom Inc. stock anatomy showing per-share revenue, operating expenses, free cash flow, and debt
    36.2%
    profit
    Where each $1 of revenue goes
    Net profit — 36.2¢ of every dollar ($4.77/sh — latest fiscal-year net income per share)
    Costs & taxes — 63.8¢ (on $13.16 revenue/sh)
    Net margin = net income ÷ revenue (most recent fiscal year).
    Plain English: each share (at $339) represents $13.16 of revenue per share per year, $4.77 of net income per current share, and $3.99 of free cash flow per share from the latest fiscal year. The filing reports no interest-bearing debt — the 89.8B of total liabilities on the balance sheet are operating items (payables, leases, deferred taxes), not borrowings.
    What's free cash flow / what do these mean?

    Revenue per share — how much the business earns from customers, divided by the number of shares outstanding. Top of the income statement.

    Earnings per share — profit left after operating costs, interest, and taxes, per share. Two versions appear on this page and are not interchangeable: GAAP diluted EPS uses the company's weighted-average diluted share count during the reporting period (this is the "earnings" in "price-to-earnings"); net income per current share divides annual net income by today's share count. They differ whenever the share count has changed.

    Owner-earnings free cash flow per share — the cash the business produces for shareholders. Savng's owner-earnings FCF subtracts capital expenditures and stock-based compensation from operating cash flow (SBC is a real dilution cost even though it's non-cash). This is deliberately more conservative than "standard" FCF, which subtracts only capital expenditures — so our figure is lower than the headline FCF you'll see elsewhere. FCF funds dividends, buybacks, debt repayment, and acquisitions; a company can report positive earnings yet negative FCF.

    Debt per share — total interest-bearing borrowings divided by shares. High debt-per-share next to thin FCF-per-share is a fragility signal.

    THE KEY DEBATE

    What you actually need to decide

    Every stock price is a disagreement. Here's the single thing that must go right for the bulls, the single thing that breaks the thesis, and the concrete signposts to watch so you can update your view as real results arrive.

    🐂 The Bull Case
    For the stock to perform, Broadcom must continue its revenue growth trajectory, maintaining its 23.5%/yr rate, by successfully integrating new acquisitions and expanding its market share in both semiconductor and software segments.
    🐻 The Bear Case
    The biggest fundamental risk is that the extreme valuation (P/IV?P/IV — Current price divided by our intrinsic value estimate.
    Why it matters: Below 1.0 = stock trades below model fair value. Above 1.0 = stock trades above model fair value (must justify with growth that exceeds our assumptions).
    Reference: < 0.85 = potentially undervalued · 0.85–1.10 = fair · > 1.10 = premium
    Full explanation →     8.3337x) implies significant future growth and optionality that may not materialize, leading to a potential re-rating if growth slows or integration challenges arise.
    📌 Signposts to watch — update your view as these print
    • Announcements of new strategic acquisitions or partnerships
    • Quarterly revenue growth rates for semiconductor and software segments
    • Updates on gross margin expansion and operating cash flow generation
    MOMENTUM — WHAT'S GETTING BETTER & WORSE

    The trend, in plain numbers (FY2024 → FY2025, latest reported)

    Straight from the financial statements — no model, no opinion. For a small or unprofitable company, the direction of these numbers usually tells you more than any single valuation.

    ✅ Improving
    • Revenue grew +24% to $63.89B.
    • Free cash flow rose to $19.35B.
    • Gross margin improved to 68% (+5 pts).
    • Net income grew +292% to $23.13B.

    Nothing was clearly worsening year-over-year.

    WHO

    Management & Leadership

    Hock Tan has served as Broadcom's President and CEO since 2008, leading the company through significant growth and numerous strategic acquisitions. His tenure has focused on expanding Broadcom's semiconductor and infrastructure software portfolio, making him a key figure in the industry.

    Hock Tan
    President and Chief Executive Officer
    Kirsten Spears
    Chief Financial Officer
    WHAT

    What They Make

    Broadcom Inc. designs, develops, and supplies a broad range of semiconductor and infrastructure software solutions. Its products are used by enterprises, service providers, and government organizations globally for data center, networking, broadband, storage, and industrial applications.

    End Markets

    Data CenterNetworkingBroadband Communication

    Revenue Drivers

    Semiconductor solutions
    Infrastructure software
    Strategic acquisitions
    Market Cap: 1.6TBeta: 1.77
    WHY

    Why Is It Priced Like This?

    Why Customers Pay

    High-performance, reliable semiconductor components
    Integrated software solutions for complex IT environments
    Scalable and energy-efficient infrastructure products
    No discounted-cash-flow value for this filer We aren't publishing a discounted-cash-flow value here: the model's output failed our plausibility checks, so showing it would imply more precision than we have.

    What we use instead: earnings (P/E, EV/EBIT), book value (P/B) — computed from the figures this company does report, shown in the sections below. Those numbers are unaffected by the missing cash-flow data.

    The market is likely pricing Broadcom based on its consistent revenue growth (23.5%/yr) and expanding gross margins (67.8%), indicating strong operational efficiency. The market may be assigning value to Broadcom's ability to integrate large acquisitions and its strategic positioning in critical technology infrastructure, which is not fully captured by a backward-looking cash flow model. The positive net income and operating cash flow over the last five years also provide a foundation for investor confidence in its profitability and cash generation capabilities.

    HOW

    Business Model & Valuation

    How They Make Money

    Sales of semiconductor devices
    Licensing of infrastructure software
    Providing support and maintenance services

    Broadcom has been reducing its long-term debt, which has fallen from $39665M to $0M, indicating a focus on strengthening its balance sheet while also returning capital to shareholders through dividends and buybacks.

    Growth / Revenue DCF Moderate franchise

    Extreme market premium (P/FCF 109x): market is pricing future growth far beyond current FCF. Using revenue/margin model.

    Show advanced inputs
    Revenue Growth23.5%

    What this model does NOT do: this is a consolidated owner-earnings FCF model. Standalone segment assumptions: none. It does not project product, services and recurring/cloud lines independently; their combined effect is embedded in the historical revenue and cash-flow trend the model extrapolates. The calculator above can only approximate a segment's impact through the single consolidated growth rate — it cannot model any one line separately. For a true segment-level view, build a separate model from the company's segment disclosures.

    WHEN

    Maturity & Competitive Position

    Growth / re-investment phase

    Moat Signals

    Extensive patent portfolio in semiconductor design
    High switching costs for integrated software solutions
    Economies of scale in manufacturing and R&D

    Revenue has been growing at 23.5%/yr over the last four years, from $27450M to $63887M, and net income has been positive for the last five years.

    WHERE

    Geography & Markets

    Broadcom Inc. is headquartered in the United States and operates globally, with significant sales and operations across North America, Europe, and Asia. Exact geographic revenue splits are not available in the current data.

    Geographic Risks

    Global supply chain disruptions impacting semiconductor production
    Intense competition in both semiconductor and enterprise software markets
    SIGNALS

    Market Signals

    These are timing signals, not value signals — they describe the stock's recent price behavior, not what the business is worth. Use them for the "the thesis looks good, but is now the moment?" question. Each tile below explains what it's saying.

    Model neutral, tape bullish
    RSI?RSI — Relative Strength Index — a 0-100 momentum gauge. Above 70 = overbought; below 30 = oversold.
    Why it matters: Short-term contrarian indicator. Extreme readings often precede mean reversion, though not always.
    Reference: 30–70 normal · >70 overbought · <30 oversold
    Full explanation →     (14)    65.9NeutralMomentum is balanced — neither overbought nor oversold.
    MACD?MACD — Moving Average Convergence Divergence — compares a fast and a slow price trend to gauge momentum direction.
    Why it matters: When the fast line crosses above the slow line, short-term momentum is turning up; below, turning down. A timing cue, not a value signal.
    Reference: Line above signal = bullish momentum · below = bearish
    Full explanation →    BearishLine below signalThe fast trend is below the slow trend — short-term momentum is currently downward.
    50-Day Average$385.70Price below (-12.0%)Price below its 50-day average = near-term downtrend.
    200-Day Average$352.30Price belowThe 200-day line is the long-term trend divider — above it is generally considered a bull market for the stock.
    50 vs 200 CrossGolden50-day above 200-dayA "golden cross" — the medium trend has overtaken the long trend (often read as bullish).

    Technicals describe price, not the business. A great company can have a "bearish" tape (a buying chance) and a weak one a "bullish" tape (a trap). Pair these with the valuation and health sections above.

    QUALITY

    Data Quality & Risk Flags (4 notes — click to expand/collapse)
    Guardrail Notes (4)
    • Revenue/margin projection model used - trailing FCF may understate growth runway at current scale.
    • Price is far above the model output - market may be pricing optionality, narrative catalysts, or margin expansion beyond what trailing cash flows support.
    • Extreme valuation (P/IV withheld — see the note above); output dominated by data/units issue (often a multi-class share-count mismatch). Suppressed.
    • DATA UNAVAILABLE: per-share values suppressed due to missing/unreliable shares data.
    FINANCIALS

    Financial Statements (5-year tables — click to expand)

    From Broadcom Inc.'s SEC filings (EDGAR).

    Income (5yr)

    YearRevenueNet IncomeEPS
    202563.9B23.1B$4.77
    202451.6B5.9B$1.23
    202335.8B14.1B$3.30
    202233.2B11.5B$2.65
    202127.5B6.7B$15.00

    Cash Flow (5yr)

    YearOperating CFCapEx− SBC & adj.Free Cash Flow
    2025 27.5B 623.0M 7.6B 19.3B
    2024 20.0B 548.0M 5.7B 13.7B
    2023 18.1B 452.0M 2.2B 15.5B
    2022 16.7B 424.0M 1.5B 14.8B
    2021 13.8B 443.0M 1.7B 11.6B

    How we define FCF: operating cash flow − capital expenditure − stock-based compensation (owner-earnings basis — SBC is a real cost to shareholders even though it's non-cash). Latest year: 27.5B − 623.0M − 7.6B (SBC & adj.) = 19.3B. This is the same owner-earnings FCF definition the valuation model uses, though the DCF's starting value is a projected from revenue × terminal margin, not this single year.

    Balance Sheet

    Total Assets171.1B
    Total Liabilities89.8B
    Equity81.3B
    VIDEOS

    Recent video coverage

    Top recent YouTube videos by date. We don't endorse the channels — these are surfaced for context.

    YOU MIGHT ALSO LIKE

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    PG
    Methodology by Pouyan Golshani, MD — founder of Gighz. Savng was built by a physician for busy professionals: every number on this page comes from SEC filings (EDGAR) and FINRA data through transparent, rules-based models — no analyst opinions, no hidden inputs. How we calculate every number →
    ⚠️ Not investment advice. Automated model outputs, last refreshed May 30, 2026 (the analysis-refresh date, not the latest filing period). All models have blind spots. Full disclaimer →
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