Broadcom Inc.

BIT:1AVGO Stock Report

Market Cap: €832.9b

Broadcom Valuation

Is 1AVGO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

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

Discounted Cash Flow
Simply Wall St
€190.28
Fair Value
7.2% undervalued intrinsic discount
36
Number of Analysts

Below Fair Value: 1AVGO (€176.6) is trading below our estimate of fair value (€190.28)

Significantly Below Fair Value: 1AVGO 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 1AVGO?

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

The above table shows the Price to Earnings ratio for 1AVGO. This is calculated by dividing 1AVGO's market cap by their current earnings.
What is 1AVGO's PE Ratio?
PE Ratio85.1x
EarningsUS$10.40b
Market CapUS$899.25b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for 1AVGO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average84.5x
2330 Taiwan Semiconductor Manufacturing
21.9x16.6%NT$25.7t
AMD Advanced Micro Devices
113.4x31.8%US$184.5b
NVDA NVIDIA
40.4x20.6%US$3.0t
ARM Arm Holdings
162.5x29.0%US$131.6b
1AVGO Broadcom
85.1x26.6%€899.2b

Price-To-Earnings vs Peers: 1AVGO is expensive based on its Price-To-Earnings Ratio (85.1x) compared to the peer average (84.5x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
1AVGO 85.1xIndustry Avg. 17.9xNo. of Companies6PE01224364860+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1AVGO is expensive based on its Price-To-Earnings Ratio (85.1x) compared to the European Semiconductor industry average (18x).

Price to Earnings Ratio vs Fair Ratio

What is 1AVGO'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.

1AVGO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio85.1x
Fair PE Ratio91.7x

Price-To-Earnings vs Fair Ratio: 1AVGO is good value based on its Price-To-Earnings Ratio (85.1x) compared to the estimated Fair Price-To-Earnings Ratio (91.7x).

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 1AVGO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€176.60
€230.11
+30.3%
9.7%€275.67€183.78n/a36
Mar ’26€190.90
€237.03
+24.2%
11.2%€288.39€174.24n/a37
Feb ’26€217.30
€233.55
+7.5%
13.1%€288.30€164.91n/a38
Jan ’26€226.35
€227.89
+0.7%
13.9%€288.24€164.87n/a37
Dec ’25€153.38
€183.79
+19.8%
9.4%€227.98€147.23n/a37
Nov ’25€156.98
€176.29
+12.3%
9.7%€219.41€141.70n/a37
Oct ’25€150.96
€171.20
+13.4%
9.5%€214.73€138.68n/a37
Sep ’25€144.90
€175.90
+21.4%
9.4%€219.58€141.81n/a38
Aug ’25€142.60
€177.85
+24.7%
9.2%€221.18€142.85n/a38
Jul ’25€150.00
€174.29
+16.2%
9.5%€200.23€139.70n/a37
Jun ’25€121.96
€140.43
+15.1%
9.8%€158.55€96.84n/a34
May ’25€124.68
€141.02
+13.1%
11.2%€161.59€98.69n/a33
Apr ’25€122.26
€137.97
+12.9%
11.5%€158.43€96.76n/a32
Mar ’25€126.78
€114.71
-9.5%
14.2%€143.03€87.67€190.9030
Feb ’25€109.52
€108.02
-1.4%
9.8%€129.07€87.58€217.3031
Jan ’25€101.58
€97.40
-4.1%
8.9%€118.04€83.99€226.3530
Dec ’24€85.63
€90.69
+5.9%
8.5%€109.24€76.47€153.3827
Nov ’24€80.00
€91.71
+14.6%
5.9%€99.46€77.20€156.9827
Oct ’24€78.73
€91.16
+15.8%
5.7%€99.14€76.95€150.9627
Sep ’24€80.64
€87.41
+8.4%
9.4%€97.47€55.70€144.9026
Aug ’24€83.02
€79.03
-4.8%
9.3%€93.51€53.44€142.6025
Jul ’24€79.34
€79.46
+0.2%
10.2%€95.58€54.62€150.0025
Jun ’24€74.35
€67.56
-9.1%
11.6%€86.22€55.93€121.9625
May ’24€56.03
€63.26
+12.9%
7.0%€70.53€54.61€124.6825
Apr ’24€58.39
€64.49
+10.4%
6.8%€72.23€55.92€122.2624
Mar ’24€55.46
€61.82
+11.5%
8.1%€72.69€50.65€126.7824
Analyst Price Target
Consensus Narrative from 36 Analysts
€234.91
Fair Value
24.8% 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.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/03/25 05:10
End of Day Share Price 2025/03/25 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 86 analysts. 39 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