Broadcom Inc.

NasdaqGS:AVGO Stock Report

Market Cap: US$772.3b

Broadcom Valuation

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

Valuation Score

0/6

Valuation 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 ($163.25) is trading above our estimate of fair value ($159.76)

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?

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

The above table shows the Price to Earnings ratio for AVGO. This is calculated by dividing AVGO's market cap by their current earnings.
What is AVGO's PE Ratio?
PE Ratio139x
EarningsUS$5.49b
Market CapUS$772.28b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for AVGO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average59.8x
AMD Advanced Micro Devices
122.3x40.5%US$226.2b
QCOM QUALCOMM
17x7.3%US$183.0b
TXN Texas Instruments
36.6x15.4%US$183.4b
ADI Analog Devices
63.3x25.7%US$104.5b
AVGO Broadcom
139x43.0%US$772.3b

Price-To-Earnings vs Peers: AVGO is expensive based on its Price-To-Earnings Ratio (139x) compared to the peer average (59.8x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TOYO TOYO
4.5xn/aUS$148.87m
SQNS Sequans Communications
1.6x-156.5%US$67.23m
No more companies available in this PE range
AVGO 139.0xIndustry Avg. 30.3xNo. of Companies9PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AVGO is expensive based on its Price-To-Earnings Ratio (139x) compared to the US Semiconductor industry average (30.3x).

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.

AVGO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio139x
Fair PE Ratio66.3x

Price-To-Earnings vs Fair Ratio: AVGO is expensive based on its Price-To-Earnings Ratio (139x) compared to the estimated Fair Price-To-Earnings Ratio (66.3x).

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 AVGO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$163.25
US$193.49
+18.5%
9.4%US$240.00US$155.00n/a37
Nov ’25US$168.92
US$192.84
+14.2%
9.7%US$240.00US$155.00n/a37
Oct ’25US$167.47
US$191.35
+14.3%
9.5%US$240.00US$155.00n/a37
Sep ’25US$162.82
US$192.26
+18.1%
9.4%US$240.00US$155.00n/a38
Aug ’25US$147.02
US$192.97
+31.3%
9.2%US$240.00US$155.00n/a38
Jul ’25US$164.08
US$187.15
+14.1%
9.5%US$215.00US$150.00n/a37
Jun ’25US$132.86
US$152.34
+14.7%
9.8%US$172.00US$105.05n/a34
May ’25US$124.29
US$150.10
+20.8%
11.2%US$172.00US$105.05n/a33
Apr ’25US$135.03
US$149.79
+10.9%
11.5%US$172.00US$105.05n/a32
Mar ’25US$139.92
US$124.31
-11.2%
14.2%US$155.00US$95.00n/a30
Feb ’25US$120.00
US$117.17
-2.4%
9.8%US$140.00US$95.00n/a31
Jan ’25US$111.63
US$107.27
-3.9%
8.9%US$130.00US$92.50n/a30
Dec ’24US$93.00
US$99.62
+7.1%
8.5%US$120.00US$84.00n/a27
Nov ’24US$85.29
US$96.83
+13.5%
5.9%US$105.00US$81.50US$168.9227
Oct ’24US$83.06
US$96.54
+16.2%
5.7%US$105.00US$81.50US$167.4727
Sep ’24US$87.25
US$94.17
+7.9%
9.4%US$105.00US$60.00US$162.8226
Aug ’24US$92.00
US$88.74
-3.5%
9.3%US$105.00US$60.00US$147.0225
Jul ’24US$86.74
US$87.29
+0.6%
10.2%US$105.00US$60.00US$164.0825
Jun ’24US$79.00
US$72.48
-8.2%
11.6%US$92.50US$60.00US$132.8625
May ’24US$63.80
US$69.50
+8.9%
7.0%US$77.50US$60.00US$124.2925
Apr ’24US$64.15
US$69.19
+7.9%
6.8%US$77.50US$60.00US$135.0324
Mar ’24US$59.36
US$65.91
+11.0%
8.1%US$77.50US$54.00US$139.9224
Feb ’24US$60.28
US$65.64
+8.9%
8.1%US$77.50US$54.00US$120.0023
Jan ’24US$55.91
US$65.33
+16.8%
8.3%US$77.50US$55.50US$111.6323
Dec ’23US$55.08
US$64.93
+17.9%
9.7%US$77.50US$54.00US$93.0023
Nov ’23US$46.79
US$64.93
+38.8%
9.7%US$77.50US$54.00US$85.2923

Analyst Forecast: Target price is less than 20% higher than the current share price.

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