Broadcom Valuation

Is 1YDD 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 1YDD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€164.61
Fair Value
8.2% undervalued intrinsic discount
36
Number of Analysts

Below Fair Value: 1YDD (€151.06) is trading below our estimate of fair value (€164.61)

Significantly Below Fair Value: 1YDD 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 1YDD?

Key metric: As 1YDD is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1YDD. This is calculated by dividing 1YDD's market cap by their current earnings.
What is 1YDD's PE Ratio?
PE Ratio77.3x
EarningsUS$10.40b
Market CapUS$803.99b

Price to Earnings Ratio vs Peers

How does 1YDD's PE Ratio compare to its peers?

The above table shows the PE ratio for 1YDD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average67.2x
2330 Taiwan Semiconductor Manufacturing
16.8x14.7%NT$22.0t
AMD Advanced Micro Devices
86.2x31.9%US$141.4b
NVDA NVIDIA
34x20.6%US$2.5t
ARM Arm Holdings
131.7x26.1%US$106.2b
1YDD Broadcom
77.3x26.6%€804.0b

Price-To-Earnings vs Peers: 1YDD is expensive based on its Price-To-Earnings Ratio (77.3x) compared to the peer average (67.2x).


Price to Earnings Ratio vs Industry

How does 1YDD's PE Ratio compare vs other companies in the European Semiconductor Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies7PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1YDD is expensive based on its Price-To-Earnings Ratio (77.3x) compared to the European Semiconductor industry average (15.3x).


Price to Earnings Ratio vs Fair Ratio

What is 1YDD'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.

1YDD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio77.3x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 1YDD'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 1YDD forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€151.06
€211.99
+40.3%
10.1%€263.76€174.08n/a36
Apr ’26€154.34
€230.83
+49.6%
9.8%€278.07€185.38n/a36
Mar ’26€191.56
€237.03
+23.7%
11.2%€288.39€174.24n/a37
Feb ’26€217.10
€233.55
+7.6%
13.1%€288.30€164.91n/a38
Jan ’26€227.80
€227.89
+0.04%
13.9%€288.24€164.87n/a37
Dec ’25€151.12
€183.79
+21.6%
9.4%€227.98€147.23n/a37
Nov ’25€155.60
€176.29
+13.3%
9.7%€219.41€141.70n/a37
Oct ’25€150.28
€171.20
+13.9%
9.5%€214.73€138.68n/a37
Sep ’25€144.86
€175.90
+21.4%
9.4%€219.58€141.81n/a38
Aug ’25€145.82
€177.85
+22.0%
9.2%€221.18€142.85n/a38
Jul ’25n/a
€174.29
0%
9.5%€200.23€139.70n/a37
Jun ’25n/a
€140.43
0%
9.8%€158.55€96.84n/a34
May ’25€118.22
€141.02
+19.3%
11.2%€161.59€98.69n/a33
Apr ’25n/a
€137.97
0%
11.5%€158.43€96.76€154.3432
Mar ’25€125.48
€114.71
-8.6%
14.2%€143.03€87.67€191.5630
Feb ’25€110.90
€108.02
-2.6%
9.8%€129.07€87.58€217.1031
Jan ’25n/a
€97.40
0%
8.9%€118.04€83.99€227.8030
Dec ’24€86.09
€90.69
+5.3%
8.5%€109.24€76.47€151.1227
Nov ’24€78.34
€91.71
+17.1%
5.9%€99.46€77.20€155.6027
Oct ’24€77.83
€91.16
+17.1%
5.7%€99.14€76.95€150.2827
Sep ’24€80.76
€87.41
+8.2%
9.4%€97.47€55.70€144.8626
Aug ’24€81.59
€79.03
-3.1%
9.3%€93.51€53.44€145.8225
Jul ’24n/a
€79.46
0%
10.2%€95.58€54.62n/a25
Jun ’24€75.55
€67.56
-10.6%
11.6%€86.22€55.93n/a25
May ’24€56.03
€63.26
+12.9%
7.0%€70.53€54.61€118.2225
Apr ’24€58.02
€64.49
+11.2%
6.8%€72.23€55.92n/a24
AnalystConsensusTarget
Consensus Narrative from 36 Analysts
€213.01
Fair Value
29.1% undervalued intrinsic discount
36
Number of Analysts

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


Discover undervalued companies

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/04/20 14:53
End of Day Share Price 2025/04/17 00:00
Earnings2025/02/02
Annual Earnings2024/11/03

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Broadcom Inc. is covered by 85 analysts. 38 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Brett SimpsonArete Research Services LLP
James KelleherArgus Research Company
Tristan GerraBaird