AVGO Stock Analysis: Broadcom | NASDAQ
Semiconductors | NASDAQ, USA | Market Cap: 1.657.882m USD | 12M Return: 5.8% | US11135F1012 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 9.42B
EPS Trend: 98.2%
Qual. Beats: 5
Rev. Trend: 99.1%
Qual. Beats: 1
Warnings
Tailwinds
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Broadcom Inc. (NASDAQ: AVGO) is a global semiconductor and infrastructure software company headquartered in Palo Alto, California, founded in 1961. It operates through two main segments: Semiconductor Solutions and Infrastructure Software. The semiconductor business spans networking connectivity (custom silicon, Ethernet switching/routing, fiber optics), wireless device components (RF semiconductors, touch controllers, inductive charging ASICs), server and storage solutions (PCIe switches, SAS/RAID, fibre channel, HDD/SSD), broadband, and industrial products. The infrastructure software segment is built largely around the VMware portfolio acquired in 2023 and includes private cloud and mainframe software, cybersecurity, enterprise software, and FC SAN management tools.
Its products serve enterprise and data center networking-including AI networking and connectivity-telecommunications equipment, broadband and home connectivity, factory automation, power generation, and electronic displays. Within the Information Technology sector (GICS Sub Industry: Semiconductors), Broadcom is a mega-cap company (~$1.96 trillion market cap) listed on NASDAQ since 2009, notable for its hybrid business model that combines merchant and custom silicon chip design with a large recurring-revenue software franchise.
- Custom AI silicon revenue surges on hyperscaler demand
- VMware integration expands software margins and recurring revenue
- Aggressive share buybacks amplify earnings per share growth
| Net Income: 38.3b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.21 > 0.02 and ΔFCF/TA 5.89 > 1.0 |
| NWC/Revenue: 35.17% < 20% (prev 13.84%; Δ 21.33% < -1%) |
| CFO/TA 0.22 > 3% & CFO 40.7b > Net Income 38.3b |
| Net Debt (35.4b) to EBITDA (52.3b): 0.68 < 3 |
| Current Ratio: 2.50 > 1.5 & < 3 |
| Outstanding Shares: last quarter (4.89b) vs 12m ago 0.56% < -2% |
| Gross Margin: 67.66% > 18% (prev 66.83%; Δ 0.83% > 0.5%) |
| Asset Turnover: 50.37% > 50% (prev 36.18%; Δ 14.19% > 0%) |
| Interest Coverage Ratio: 14.36 > 6 (EBIT TTM 43.5b / Interest Expense TTM 3.03b) |
| A: 0.17 (Total Current Assets 52.2b - Total Current Liabilities 20.8b) / Total Assets 188b |
| B: 0.12 (Retained Earnings 22.2b / Total Assets 188b) |
| C: 0.25 (EBIT TTM 43.5b / Avg Total Assets 177b) |
| D: 1.13 (Book Value of Equity 99.7b / Total Liabilities 88.5b) |
| Altman-Z'' = 4.31 = AA |
| DSRI: 0.87 (Receivables 13.7b/10.7b, Revenue 89.1b/59.9b) |
| GMI: 0.99 (GM 66.83% / 67.66%) |
| AQI: 0.85 (AQ_t 0.71 / AQ_t-1 0.83) |
| SGI: 1.49 (Revenue 89.1b / 59.9b) |
| TATA: -0.01 (NI 38.3b - CFO 40.7b) / TA 188b) |
| Beneish M = -2.89 (Cap -4..+1) = A |
As of September 27, 2026, the stock is trading at USD 352.81 with a total of 15,753,539 shares traded. Over the past week, the price has changed by -1.16%, over one month by -0.92%, over three months by -6.72% and over the past year by +5.76%.
Current recommended Stop Loss: 338.80 (which is 4% or 1.2 ATR below the current price).
Broadcom has received a consensus analysts rating of 4.72. Therefore, it is recommended to buy AVGO.
- StrongBuy: 36
- Buy: 7
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 531.9 | 50.7% |
P/E Trailing = 44.2985
P/E Forward = 18.0832
P/S = 18.6061
P/B = 16.2573
P/EG = 0.3362
Revenue TTM = 89.1b USD
EBIT TTM = 43.5b USD
EBITDA TTM = 52.3b USD
Long Term Debt = 57.2b USD (from longTermDebt, last quarter)
Short Term Debt = 2.25b USD (from shortTermDebt, last quarter)
Debt = 59.4b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 35.4b USD (calculated: Debt 59.4b - CCE 24.0b)
Enterprise Value = 1693b USD (1658b + Debt 59.4b - CCE 24.0b)
Interest Coverage Ratio = 14.36 (Ebit TTM 43.5b / Interest Expense TTM 3.03b)
EV/FCF = 42.97x (Enterprise Value 1693b / FCF TTM 39.4b)
FCF Yield = 2.33% (FCF TTM 39.4b / Enterprise Value 1693b)
FCF Margin = 44.22% (FCF TTM 39.4b / Revenue TTM 89.1b)
Net Margin = 42.94% (Net Income TTM 38.3b / Revenue TTM 89.1b)
Gross Margin = 67.66% ((Revenue TTM 89.1b - Cost of Revenue TTM 28.8b) / Revenue TTM)
Gross Margin QoQ = 69.13% (prev 67.24%)
Tobins Q-Ratio = 9.00 (Enterprise Value 1693b / Total Assets 188b)
Interest Expense / Debt = 5.10% (Interest Expense 3.03b / Debt 59.4b)
Taxrate = 5.45% (2.20b / 40.5b)
NOPAT = 41.1b (EBIT 43.5b * (1 - 5.45%))
Current Ratio = 2.50 (Total Current Assets 52.2b / Total Current Liabilities 20.8b)
Debt / Equity = 0.60 (Debt 59.4b / totalStockholderEquity, last quarter 99.7b)
Debt / EBITDA = 0.68 (Net Debt 35.4b / EBITDA 52.3b)
Debt / FCF = 0.90 (Net Debt 35.4b / FCF TTM 39.4b)
Total Stockholder Equity = 87.1b (last 4 quarters mean from totalStockholderEquity)
RoA = 21.63% (Net Income 38.3b / Total Assets 188b)
RoE = 43.91% (Net Income TTM 38.3b / Total Stockholder Equity 87.1b)
RoCE = 30.14% (EBIT 43.5b / Capital Employed (Equity 87.1b + L.T.Debt 57.2b))
RoIC = 24.91% (NOPAT 41.1b / Invested Capital 165b)
WACC = 12.96% (E(1658b)/V(1717b) * Re(13.25%) + D(59.4b)/V(1717b) * Rd(5.10%) * (1-Tc(0.05)))
Discount Rate = 13.25% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: 74.61 | Cagr: 0.80%
[DCF] Terminal Value 64.55% ; FCFF base≈33.6b ; Y1≈38.5b ; Y5≈56.7b
[DCF] Fair Price = 90.65 (EV 468b - Net Debt 35.4b = Equity 433b / Shares 4.77b; r=12.96% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 98.18 | EPS CAGR: 34.35% | SUE: 4.0 | # QB: 5
Revenue Correlation: 99.14 | Revenue CAGR: 34.79% | SUE: 0.87 | # QB: 1
EPS current Quarter (2027-01-31): EPS=4.08 | Chg30d=-1.29% | Revisions=-37% | Analysts=35
EPS current Year (2026-10-31): EPS=11.66 | Chg30d=+0.28% | Revisions=+22% | GrowthEPS=+70.9% | GrowthRev=+65.9%
EPS next Year (2027-10-31): EPS=19.38 | Chg30d=-1.09% | Revisions=-36% | GrowthEPS=+66.3% | GrowthRev=+63.7%
[Analyst] Revisions Ratio: -17% (up=40, down=57)