Broadcom Inc.

NasdaqGS:AVGO Stock Report

Market Cap: US$855.5b

Broadcom Valuation

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

Discounted Cash Flow
Simply Wall St
US$181.78
Fair Value
0.09% overvalued intrinsic discount
36
Number of Analysts

Below Fair Value: AVGO ($181.94) is trading above our estimate of fair value ($181.78)

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 Ratio82.3x
EarningsUS$10.40b
Market CapUS$855.47b

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 Average69.9x
AMD Advanced Micro Devices
92x31.3%US$151.0b
NVDA NVIDIA
37.1x20.6%US$2.6t
ARM Arm Holdings
136x25.9%US$109.6b
QCOM QUALCOMM
14.6x5.6%US$153.1b
AVGO Broadcom
82.3x26.6%US$855.5b

Price-To-Earnings vs Peers: AVGO is expensive based on its Price-To-Earnings Ratio (82.3x) compared to the peer average (69.9x).

Price to Earnings Ratio vs Industry

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

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TOYO TOYO
4.3xn/aUS$134.89m
SQNS Sequans Communications
0.8x-103.2%US$48.27m
SODI Solitron Devices
4.6xn/aUS$30.23m
CHJI China Changjiang Mining & New Energy Company
0.3xn/aUS$19.39k
AVGO 82.3xIndustry Avg. 23.0xNo. of Companies12PE020406080100+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AVGO is expensive based on its Price-To-Earnings Ratio (82.3x) compared to the US Semiconductor industry average (23x).

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 Ratio82.3x
Fair PE Ratio54.1x

Price-To-Earnings vs Fair Ratio: AVGO is expensive based on its Price-To-Earnings Ratio (82.3x) compared to the estimated Fair Price-To-Earnings Ratio (54.1x).

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$181.94
US$241.67
+32.8%
10.1%US$300.00US$198.00n/a36
Apr ’26US$168.52
US$249.03
+47.8%
9.8%US$300.00US$200.00n/a36
Mar ’26US$199.43
US$246.58
+23.6%
11.2%US$300.00US$181.25n/a37
Feb ’26US$221.27
US$243.02
+9.8%
13.1%US$300.00US$171.60n/a38
Jan ’26US$231.84
US$237.19
+2.3%
13.9%US$300.00US$171.60n/a37
Dec ’25US$162.08
US$193.49
+19.4%
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$105.05US$168.5232
Mar ’25US$139.92
US$124.31
-11.2%
14.2%US$155.00US$95.00US$199.4330
Feb ’25US$120.00
US$117.17
-2.4%
9.8%US$140.00US$95.00US$221.2731
Jan ’25US$111.63
US$107.27
-3.9%
8.9%US$130.00US$92.50US$231.8430
Dec ’24US$93.00
US$99.62
+7.1%
8.5%US$120.00US$84.00US$162.0827
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
AnalystConsensusTarget
Consensus Narrative from 36 Analysts
US$241.67
Fair Value
24.7% 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 Analysis2025/04/13 01:55
End of Day Share Price 2025/04/11 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. 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