Broadcom Valuation
Is AVGO * undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
0/6Valuation Score 0/6
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 AVGO * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: AVGO * (MX$22080) is trading above our estimate of fair value (MX$17775.23)
Significantly Below Fair Value: AVGO * is trading above our estimate of fair value.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for AVGO *?
Other financial metrics that can be useful for relative valuation.
| What is AVGO *'s n/a Ratio? | |
|---|---|
| n/a | 0x |
| n/a | n/a |
| Market Cap | US$614.20b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 17.5x |
| Enterprise Value/EBITDA | 33.2x |
| PEG Ratio | 2.2x |
Price to Earnings Ratio vs Peers
How does AVGO *'s PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 37.5x | ||
2330 Taiwan Semiconductor Manufacturing | 24.1x | 16.1% | NT$20.6t |
QCOM QUALCOMM | 23.8x | 8.9% | US$201.5b |
TXN Texas Instruments | 28.7x | 8.7% | US$167.5b |
NVDA NVIDIA | 73.4x | 23.4% | US$2.2t |
AVGO * Broadcom | 52.2x | 23.2% | Mex$614.2b |
Price-To-Earnings vs Peers: AVGO * is expensive based on its Price-To-Earnings Ratio (52.2x) compared to the peer average (37.5x).
Price to Earnings Ratio vs Industry
How does AVGO *'s PE Ratio compare vs other companies in the Global Semiconductor Industry?
Price-To-Earnings vs Industry: AVGO * is expensive based on its Price-To-Earnings Ratio (52.2x) compared to the Global Semiconductor industry average (32.3x).
Price to Earnings Ratio vs Fair Ratio
What is AVGO *'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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 52.2x |
| Fair PE Ratio | n/a |
Price-To-Earnings vs Fair Ratio: Insufficient data to calculate AVGO *'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?
| Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
|---|---|---|---|---|---|---|---|
| Current | Mex$22,080.00 | Mex$25,515.93 +15.6% | 11.4% | Mex$29,229.85 | Mex$17,852.30 | n/a | 32 |
| May ’25 | Mex$22,790.00 | Mex$25,603.52 +12.3% | 11.2% | Mex$29,339.93 | Mex$17,919.53 | n/a | 33 |
| Apr ’25 | Mex$22,426.60 | Mex$25,065.94 +11.8% | 11.5% | Mex$28,782.65 | Mex$17,579.17 | n/a | 32 |
| Mar ’25 | Mex$23,708.00 | Mex$21,155.87 -10.8% | 14.2% | Mex$26,378.83 | Mex$16,167.67 | n/a | 30 |
| Feb ’25 | Mex$20,479.88 | Mex$20,292.65 -0.9% | 9.8% | Mex$24,246.32 | Mex$16,452.86 | n/a | 31 |
| Jan ’25 | Mex$18,872.81 | Mex$18,222.86 -3.4% | 8.9% | Mex$22,085.18 | Mex$15,714.46 | n/a | 30 |
| Dec ’24 | Mex$16,017.55 | Mex$17,067.15 +6.6% | 8.5% | Mex$20,558.40 | Mex$14,390.88 | n/a | 27 |
| Nov ’24 | Mex$15,075.11 | Mex$17,591.59 +16.7% | 5.9% | Mex$19,076.82 | Mex$14,807.25 | n/a | 27 |
| Oct ’24 | Mex$14,663.00 | Mex$16,800.83 +14.6% | 5.7% | Mex$18,272.42 | Mex$14,182.87 | n/a | 27 |
| Sep ’24 | Mex$14,957.70 | Mex$16,094.09 +7.6% | 9.4% | Mex$17,945.87 | Mex$10,254.78 | n/a | 26 |
| Aug ’24 | Mex$15,500.53 | Mex$14,853.21 -4.2% | 9.3% | Mex$17,574.80 | Mex$10,042.74 | n/a | 25 |
| Jul ’24 | Mex$14,690.11 | Mex$14,950.68 +1.8% | 10.2% | Mex$17,983.56 | Mex$10,276.32 | n/a | 25 |
| Jun ’24 | Mex$14,039.00 | Mex$12,800.53 -8.8% | 11.6% | Mex$16,335.32 | Mex$10,595.88 | n/a | 25 |
| May ’24 | Mex$11,100.03 | Mex$12,574.80 +13.3% | 7.0% | Mex$14,021.46 | Mex$10,855.32 | Mex$22,790.00 | 25 |
| Apr ’24 | Mex$11,550.13 | Mex$13,138.25 +13.7% | 6.8% | Mex$14,715.86 | Mex$11,392.92 | Mex$22,426.60 | 24 |
| Mar ’24 | Mex$10,760.06 | Mex$11,931.32 +10.9% | 8.1% | Mex$14,029.75 | Mex$9,775.57 | Mex$23,708.00 | 24 |
| Feb ’24 | Mex$11,055.00 | Mex$12,330.60 +11.5% | 8.1% | Mex$14,557.76 | Mex$10,143.47 | Mex$20,479.88 | 23 |
| Jan ’24 | Mex$10,868.00 | Mex$12,650.03 +16.4% | 8.3% | Mex$15,005.94 | Mex$10,746.19 | Mex$18,872.81 | 23 |
| Dec ’23 | Mex$10,079.26 | Mex$12,997.89 +29.0% | 9.7% | Mex$15,513.56 | Mex$10,809.45 | Mex$16,017.55 | 23 |
| Nov ’23 | Mex$9,251.79 | Mex$12,997.89 +40.5% | 9.7% | Mex$15,513.56 | Mex$10,809.45 | Mex$15,075.11 | 23 |
| Oct ’23 | Mex$9,060.00 | Mex$13,046.40 +44.0% | 8.9% | Mex$15,436.06 | Mex$10,755.45 | Mex$14,663.00 | 23 |
| Sep ’23 | Mex$9,918.72 | Mex$13,455.93 +35.7% | 8.5% | Mex$15,602.34 | Mex$10,801.62 | Mex$14,957.70 | 23 |
| Aug ’23 | Mex$10,700.00 | Mex$13,803.38 +29.0% | 8.5% | Mex$16,005.21 | Mex$11,080.53 | Mex$15,500.53 | 23 |
| Jul ’23 | Mex$9,568.00 | Mex$13,843.93 +44.7% | 6.9% | Mex$15,702.10 | Mex$12,078.54 | Mex$14,690.11 | 23 |
| Jun ’23 | Mex$11,448.53 | Mex$13,759.90 +20.2% | 6.9% | Mex$15,368.73 | Mex$11,822.10 | Mex$14,039.00 | 23 |
| May ’23 | Mex$11,490.00 | Mex$14,066.63 +22.4% | 6.7% | Mex$15,753.82 | Mex$11,007.47 | Mex$11,100.03 | 28 |
Analyst Forecast: Target price is less than 20% higher than the current share price.