Broadcom Inc.

WBAG:BROA Stock Report

Market Cap: €728.3b

Broadcom Valuation

Is BROA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of BROA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BROA (€150.14) is trading below our estimate of fair value (€159.06)

Significantly Below Fair Value: BROA is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BROA?

Key metric: As BROA is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for BROA. This is calculated by dividing BROA's market cap by their current earnings.
What is BROA's PE Ratio?
PE Ratio135.9x
EarningsUS$5.49b
Market CapUS$769.43b

Price to Earnings Ratio vs Peers

How does BROA's PE Ratio compare to its peers?

The above table shows the PE ratio for BROA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average50x
2330 Taiwan Semiconductor Manufacturing
25x19.7%NT$25.9t
AMD Advanced Micro Devices
121.1x40.1%US$223.5b
QCOM QUALCOMM
17.2x7.1%US$174.3b
TXN Texas Instruments
36.8x15.3%US$183.3b
BROA Broadcom
135.9x43.0%€769.4b

Price-To-Earnings vs Peers: BROA is expensive based on its Price-To-Earnings Ratio (135.9x) compared to the peer average (50x).

Price to Earnings Ratio vs Industry

How does BROA's PE Ratio compare vs other companies in the European Semiconductor Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
BROA 135.9xIndustry Avg. 14.7xNo. of Companies7PE01632486480+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BROA is expensive based on its Price-To-Earnings Ratio (135.9x) compared to the European Semiconductor industry average (14.9x).

Price to Earnings Ratio vs Fair Ratio

What is BROA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BROA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio135.9x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate BROA's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst BROA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€150.14
€183.79
+22.4%
9.4%€227.98€147.23n/a37
Nov ’25€156.90
€176.29
+12.4%
9.7%€219.41€141.70n/a37
Oct ’25€151.20
€171.20
+13.2%
9.5%€214.73€138.68n/a37
Sep ’25€144.50
€175.90
+21.7%
9.4%€219.58€141.81n/a38
Aug ’25€142.58
€177.85
+24.7%
9.2%€221.18€142.85n/a38
Jul ’25€149.92
€174.29
+16.3%
9.5%€200.23€139.70n/a37
Jun ’25€121.52
€140.43
+15.6%
9.8%€158.55€96.84n/a34
May ’25€124.42
€141.02
+13.3%
11.2%€161.59€98.69n/a33
Apr ’25€120.90
€137.97
+14.1%
11.5%€158.43€96.76n/a32
Mar ’25€126.72
€114.71
-9.5%
14.2%€143.03€87.67n/a30
Feb ’25€109.44
€108.02
-1.3%
9.8%€129.07€87.58n/a31
Jan ’25€101.02
€97.40
-3.6%
8.9%€118.04€83.99n/a30
Dec ’24€85.60
€90.69
+5.9%
8.5%€109.24€76.47n/a27
Nov ’24€80.00
€91.71
+14.6%
5.9%€99.46€77.20€156.9027
Oct ’24€78.61
€91.16
+16.0%
5.7%€99.14€76.95€151.2027
Sep ’24€80.74
€87.41
+8.3%
9.4%€97.47€55.70€144.5026
Aug ’24€82.97
€79.03
-4.7%
9.3%€93.51€53.44€142.5825
Jul ’24€79.35
€79.46
+0.1%
10.2%€95.58€54.62€149.9225
Jun ’24€74.48
€67.56
-9.3%
11.6%€86.22€55.93€121.5225
May ’24€55.61
€63.26
+13.7%
7.0%€70.53€54.61€124.4225
Apr ’24€58.40
€64.49
+10.4%
6.8%€72.23€55.92€120.9024
Mar ’24€55.43
€61.82
+11.5%
8.1%€72.69€50.65€126.7224
Feb ’24€54.17
€60.16
+11.0%
8.1%€71.02€49.49€109.4423
Jan ’24€51.81
€61.54
+18.8%
8.3%€73.00€52.28€101.0223
Dec ’23€52.09
€65.98
+26.7%
9.7%€78.75€54.87€85.6023
Nov ’23€47.19
€65.98
+39.8%
9.7%€78.75€54.87€80.0023

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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