Broadcom Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • 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 AVGOCL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AVGOCL (CLP165060) is trading above our estimate of fair value (CLP147078.83)

Significantly Below Fair Value: AVGOCL is trading above our estimate of fair value.


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for AVGOCL. This is calculated by dividing AVGOCL's market cap by their current earnings.
What is AVGOCL's PE Ratio?
PE Ratio135.9x
EarningsUS$5.49b
Market CapUS$745.75b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for AVGOCL 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
AVGOCL Broadcom
135.9x43.0%CL$745.8b

Price-To-Earnings vs Peers: AVGOCL 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 AVGOCL's PE Ratio compare vs other companies in the Global Semiconductor Industry?

13 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AVGOCL 135.9xIndustry Avg. 30.7xNo. of Companies92PE020406080100+
13 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AVGOCL is expensive based on its Price-To-Earnings Ratio (135.9x) compared to the Global Semiconductor industry average (30.7x).


Price to Earnings Ratio vs Fair Ratio

What is AVGOCL'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.

AVGOCL 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 AVGOCL'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 AVGOCL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCL$165,060.00
CL$189,699.43
+14.9%
9.4%CL$235,303.20CL$151,966.65n/a37
Nov ’25CL$165,060.00
CL$179,975.05
+9.0%
9.7%CL$223,992.00CL$144,661.50n/a37
Oct ’25CL$160,902.00
CL$172,493.19
+7.2%
9.5%CL$216,348.00CL$139,724.75n/a37
Sep ’25CL$1,591,900.00
CL$179,378.52
-88.7%
9.4%CL$223,922.40CL$144,616.55n/a38
Aug ’25CL$1,591,900.00
CL$182,666.00
-88.5%
9.2%CL$227,179.20CL$146,719.90n/a38
Jul ’25CL$159,190.00
CL$177,026.17
+11.2%
9.5%CL$203,374.95CL$141,889.50n/a37
Jun ’25n/a
CL$139,854.41
0%
9.8%CL$157,902.88CL$96,440.10n/a34
May ’25n/a
CL$144,962.69
0%
11.2%CL$166,117.60CL$101,457.29n/a33
Apr ’25n/a
CL$145,737.78
0%
11.5%CL$167,347.40CL$102,208.40n/a32
Mar ’25n/a
CL$120,370.88
0%
14.2%CL$150,088.05CL$91,989.45n/a30
Feb ’25n/a
CL$107,061.11
0%
9.8%CL$127,920.10CL$86,802.93n/a31
Jan ’25n/a
CL$95,600.14
0%
8.9%CL$115,862.50CL$82,440.63n/a30
Dec ’24n/a
CL$86,443.55
0%
8.5%CL$104,126.40CL$72,888.48n/a27
Nov ’24n/a
CL$90,410.52
0%
5.9%CL$98,043.75CL$76,100.63CL$165,060.0027
Oct ’24n/a
CL$87,003.73
0%
5.7%CL$94,624.43CL$73,446.58CL$160,902.0027
Sep ’24n/a
CL$80,412.53
0%
9.4%CL$89,664.75CL$51,237.00CL$1,591,900.0026
Aug ’24n/a
CL$72,296.48
0%
9.3%CL$85,543.50CL$48,882.00CL$1,591,900.0025
Jul ’24n/a
CL$70,202.85
0%
10.2%CL$84,444.15CL$48,253.80CL$159,190.0025
Jun ’24n/a
CL$58,338.75
0%
11.6%CL$74,448.63CL$48,291.00n/a25
May ’24n/a
CL$55,852.02
0%
7.0%CL$62,277.45CL$48,214.80n/a25
Apr ’24n/a
CL$55,740.81
0%
6.8%CL$62,434.00CL$48,336.00n/a24
Mar ’24n/a
CL$53,427.27
0%
8.1%CL$62,823.83CL$43,774.02n/a24
Feb ’24n/a
CL$52,741.25
0%
8.1%CL$62,267.38CL$43,386.30n/a23
Jan ’24n/a
CL$57,360.72
0%
8.3%CL$68,043.45CL$48,727.89n/a23
Dec ’23n/a
CL$62,958.01
0%
9.7%CL$75,143.23CL$52,357.86n/a23
Nov ’23n/a
CL$62,958.01
0%
9.7%CL$75,143.23CL$52,357.86n/a23

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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