Broadcom Inc.

NasdaqGS:AVGO Stock Report

Market Cap: US$1.1t

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-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales 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 ($235.58) is trading above our estimate of fair value ($154.79)

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 barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for AVGO. This is calculated by dividing AVGO's market cap by their current revenue.
What is AVGO's PS Ratio?
PS Ratio21.4x
SalesUS$51.57b
Market CapUS$1.13t

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for AVGO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average13.3x
AMD Advanced Micro Devices
8.2x18.8%US$203.2b
NVDA NVIDIA
29.7x25.5%US$3.4t
QCOM QUALCOMM
4.4x6.5%US$174.7b
TXN Texas Instruments
10.9x10.2%US$174.4b
AVGO Broadcom
21.4x12.9%US$1.1t

Price-To-Sales vs Peers: AVGO is expensive based on its Price-To-Sales Ratio (21.4x) compared to the peer average (13.3x).

Price to Sales Ratio vs Industry

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

18 CompaniesPrice / SalesEstimated GrowthMarket Cap
UCTT Ultra Clean Holdings
0.8x10.5%US$1.65b
JKS JinkoSolar Holding
0.09x9.6%US$1.34b
PENG Penguin Solutions
0.9x11.9%US$1.03b
SEDG SolarEdge Technologies
0.8x20.2%US$799.71m
AVGO 21.4xIndustry Avg. 4.2xNo. of Companies18PS03.67.210.814.418+
18 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: AVGO is expensive based on its Price-To-Sales Ratio (21.4x) compared to the US Semiconductor industry average (4.2x).

Price to Sales Ratio vs Fair Ratio

What is AVGO's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AVGO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio21.4x
Fair PS Ratio24.6x

Price-To-Sales vs Fair Ratio: AVGO is good value based on its Price-To-Sales Ratio (21.4x) compared to the estimated Fair Price-To-Sales Ratio (24.6x).

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$235.58
US$237.19
+0.7%
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$105.05n/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$84.00US$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
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

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/30 00:03
End of Day Share Price 2024/12/30 00:00
Earnings2024/11/03
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 here.

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 .

Analyst Sources

Broadcom Inc. is covered by 84 analysts. 40 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