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Broadcom

Nasdaq:AVGO
Snowflake Description

Reasonable growth potential with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AVGO
Nasdaq
$106B
Market Cap
  1. Home
  2. US
  3. Semiconductors
Company description

Broadcom Inc. designs, develops, and supplies a range of semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The last earnings update was 3 days ago. More info.


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AVGO Share Price and Events
7 Day Returns
-5.1%
NasdaqGS:AVGO
-1.2%
US Semiconductor
0.5%
US Market
1 Year Returns
0.5%
NasdaqGS:AVGO
-12.1%
US Semiconductor
0.8%
US Market
AVGO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Broadcom (AVGO) -5.1% -8.3% -11.2% 0.5% 69.5% 273.3%
US Semiconductor -1.2% -3.9% -5.5% -12.1% 69.8% 78.8%
US Market 0.5% -0.1% 1% 0.8% 37.5% 37.5%
1 Year Return vs Industry and Market
  • AVGO outperformed the Semiconductor industry which returned -12.1% over the past year.
Price Volatility
AVGO
Industry
5yr Volatility vs Market
Related Companies

AVGO Value

 Is Broadcom undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Broadcom to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Broadcom.

NasdaqGS:AVGO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 29 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:AVGO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Semiconductor Unlevered Beta Simply Wall St/ S&P Global 1.23
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.226 (1 + (1- 21%) (35.47%))
1.382
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.38
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.382 * 5.96%)
10.97%

Discounted Cash Flow Calculation for NasdaqGS:AVGO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Broadcom is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:AVGO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.97%)
2019 9,640.53 Analyst x10 8,687.82
2020 10,919.34 Analyst x10 8,867.80
2021 10,768.00 Analyst x1 7,880.69
2022 10,750.92 Est @ -0.16% 7,090.63
2023 10,827.04 Est @ 0.71% 6,435.15
2024 10,969.37 Est @ 1.31% 5,875.44
2025 11,160.15 Est @ 1.74% 5,386.89
2026 11,387.42 Est @ 2.04% 4,953.40
2027 11,643.01 Est @ 2.24% 4,564.08
2028 11,921.29 Est @ 2.39% 4,211.35
Present value of next 10 years cash flows $63,953.24
NasdaqGS:AVGO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $11,921.29 × (1 + 2.73%) ÷ (10.97% – 2.73%)
$148,696.33
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $148,696.33 ÷ (1 + 10.97%)10
$52,528.85
NasdaqGS:AVGO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $63,953.24 + $52,528.85
$116,482.08
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $116,482.08 / 398.07
$292.61
NasdaqGS:AVGO Discount to Share Price
Calculation Result
Value per share (USD) From above. $292.61
Current discount Discount to share price of $265.93
= -1 x ($265.93 - $292.61) / $292.61
9.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Broadcom is available for.
Intrinsic value
9%
Share price is $265.93 vs Future cash flow value of $292.61
Current Discount Checks
For Broadcom to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Broadcom's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Broadcom's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Broadcom's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Broadcom's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:AVGO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-05-05) in USD $8.50
NasdaqGS:AVGO Share Price ** NasdaqGS (2019-06-14) in USD $265.93
United States of America Semiconductor Industry PE Ratio Median Figure of 69 Publicly-Listed Semiconductor Companies 22.82x
United States of America Market PE Ratio Median Figure of 3,094 Publicly-Listed Companies 17.69x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Broadcom.

NasdaqGS:AVGO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:AVGO Share Price ÷ EPS (both in USD)

= 265.93 ÷ 8.50

31.28x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Broadcom is overvalued based on earnings compared to the US Semiconductor industry average.
  • Broadcom is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Broadcom's expected growth come at a high price?
Raw Data
NasdaqGS:AVGO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 31.28x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 29 Analysts
48.9%per year
United States of America Semiconductor Industry PEG Ratio Median Figure of 63 Publicly-Listed Semiconductor Companies 0.92x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

NasdaqGS:AVGO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 31.28x ÷ 48.9%

0.64x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Broadcom is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Broadcom's assets?
Raw Data
NasdaqGS:AVGO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-05-05) in USD $55.57
NasdaqGS:AVGO Share Price * NasdaqGS (2019-06-14) in USD $265.93
United States of America Semiconductor Industry PB Ratio Median Figure of 107 Publicly-Listed Semiconductor Companies 2.51x
United States of America Market PB Ratio Median Figure of 5,244 Publicly-Listed Companies 1.79x
NasdaqGS:AVGO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:AVGO Share Price ÷ Book Value per Share (both in USD)

= 265.93 ÷ 55.57

4.79x

* Primary Listing of Broadcom.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Broadcom is overvalued based on assets compared to the US Semiconductor industry average.
X
Value checks
We assess Broadcom's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Semiconductor industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Semiconductor industry average (and greater than 0)? (1 check)
  5. Broadcom has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

AVGO Future Performance

 How is Broadcom expected to perform in the next 1 to 3 years based on estimates from 29 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
48.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Broadcom expected to grow at an attractive rate?
  • Broadcom's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Broadcom's earnings growth is expected to exceed the United States of America market average.
  • Broadcom's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:AVGO Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:AVGO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 29 Analysts 48.9%
NasdaqGS:AVGO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 29 Analysts 5.9%
United States of America Semiconductor Industry Earnings Growth Rate Market Cap Weighted Average 18.4%
United States of America Semiconductor Industry Revenue Growth Rate Market Cap Weighted Average 7.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:AVGO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 29 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:AVGO Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-10-31 26,833 1
2021-10-31 25,485 12,986 7,479 6
2020-10-31 23,904 11,576 4,776 29
2019-10-31 22,537 9,931 2,547 25
NasdaqGS:AVGO Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-05-05 21,813 9,681 3,486
2019-02-03 21,310 9,327 6,514
2018-11-04 20,848 8,880 12,278
2018-08-05 20,248 8,204 11,690
2018-05-06 19,648 7,613 10,976
2018-02-04 18,824 6,883 7,699
2017-10-29 17,636 6,551 1,698
2017-07-30 16,928 5,944 601
2017-04-30 16,257 5,251 -168
2017-01-29 15,608 4,290 -1,760
2016-10-30 13,240 3,411 -1,627
2016-07-31 10,944 2,641 -587

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Broadcom's earnings are expected to grow significantly at over 20% yearly.
  • Broadcom's revenue is expected to grow by 5.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:AVGO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 29 Analyst Estimates (S&P Global) See Below

All data from Broadcom Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:AVGO Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-10-31
2021-10-31 17.39 18.51 16.00 3.00
2020-10-31 10.26 14.70 7.24 17.00
2019-10-31 5.85 9.75 4.31 18.00
NasdaqGS:AVGO Past Financials Data
Date (Data in USD Millions) EPS *
2019-05-05 8.50
2019-02-03 15.67
2018-11-04 29.37
2018-08-05 27.98
2018-05-06 26.64
2018-02-04 18.88
2017-10-29 4.19
2017-07-30 1.50
2017-04-30 -0.42
2017-01-29 -4.44
2016-10-30 -4.45
2016-07-31 -1.75

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Broadcom is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Broadcom's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Broadcom has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

AVGO Past Performance

  How has Broadcom performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Broadcom's growth in the last year to its industry (Semiconductor).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Broadcom has delivered over 20% year on year earnings growth in the past 5 years.
  • Broadcom's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Broadcom's 1-year earnings growth is negative, it can't be compared to the US Semiconductor industry average.
Earnings and Revenue History
Broadcom's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Broadcom Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:AVGO Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-05-05 21,813.00 3,486.00 1,259.00 4,191.00
2019-02-03 21,310.00 6,514.00 1,145.00 3,976.00
2018-11-04 20,848.00 12,278.00 1,027.00 3,768.00
2018-08-05 20,248.00 11,690.00 1,001.00 3,648.00
2018-05-06 19,648.00 10,976.00 967.00 3,516.00
2018-02-04 18,824.00 7,699.00 877.00 3,409.00
2017-10-29 17,636.00 1,698.00 787.00 3,292.00
2017-07-30 16,928.00 601.00 730.00 3,270.00
2017-04-30 16,257.00 -168.00 758.00 3,257.00
2017-01-29 15,608.00 -1,760.00 755.00 3,215.00
2016-10-30 13,240.00 -1,627.00 764.00 2,674.00
2016-07-31 10,944.00 -587.00 590.00 2,155.00
2016-05-01 8,887.00 -57.00 505.00 1,617.00
2016-01-31 6,960.00 1,430.00 412.00 1,081.00
2015-11-01 6,824.00 1,391.00 415.00 1,049.00
2015-08-02 6,574.00 1,058.00 430.00 996.00
2015-05-03 6,108.00 694.00 424.00 960.00
2015-02-01 5,195.00 513.00 383.00 823.00
2014-11-02 4,269.00 309.00 340.00 695.00
2014-08-03 3,417.00 344.00 327.00 570.00
2014-05-04 2,792.00 606.00 247.00 431.00
2014-02-02 2,653.00 561.00 232.00 412.00
2013-11-03 2,520.00 552.00 211.00 398.00
2013-08-04 2,400.00 539.00 211.00 369.00
2013-05-05 2,362.00 542.00 203.00 357.00
2013-02-03 2,377.00 563.00 202.00 346.00
2012-10-28 2,364.00 563.00 199.00 335.00
2012-07-29 2,369.00 558.00 205.00 338.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Broadcom has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Broadcom used its assets less efficiently than the US Semiconductor industry average last year based on Return on Assets.
  • Broadcom has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Broadcom's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Semiconductor industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Broadcom has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

AVGO Health

 How is Broadcom's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Broadcom's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Broadcom is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Broadcom's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Broadcom's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Broadcom Company Filings, last reported 1 month ago.

NasdaqGS:AVGO Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-05-05 22,172.00 37,548.00 5,328.00
2019-02-03 23,224.00 37,641.00 5,093.00
2018-11-04 26,657.00 17,493.00 4,292.00
2018-08-05 27,452.00 17,604.00 4,136.00
2018-05-06 32,067.00 17,598.00 8,187.00
2018-02-04 29,081.00 17,592.00 7,076.00
2017-10-29 23,186.00 17,548.00 11,204.00
2017-07-30 22,704.00 13,572.00 5,449.00
2017-04-30 22,343.00 13,567.00 4,454.00
2017-01-29 22,010.00 13,562.00 3,536.00
2016-10-30 21,876.00 13,642.00 3,097.00
2016-07-31 22,504.00 13,715.00 1,961.00
2016-05-01 22,762.00 15,008.00 2,041.00
2016-01-31 5,121.00 3,938.00 2,169.00
2015-11-01 4,714.00 3,872.00 1,822.00
2015-08-02 4,281.00 3,961.00 1,354.00
2015-05-03 4,061.00 4,898.00 2,508.00
2015-02-01 3,628.00 5,500.00 2,569.00
2014-11-02 3,243.00 5,509.00 1,628.00
2014-08-03 3,098.00 5,518.00 1,277.00
2014-05-04 3,154.00 0.00 1,278.00
2014-02-02 2,992.00 2.00 1,126.00
2013-11-03 2,886.00 0.00 1,008.00
2013-08-04 2,726.00 3.00 889.00
2013-05-05 2,611.00 3.00 1,229.00
2013-02-03 2,518.00 3.00 1,162.00
2012-10-28 2,419.00 3.00 1,084.00
2012-07-29 2,289.00 3.00 973.00
  • Broadcom's level of debt (169.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (3.8% vs 169.3% today).
  • Debt is well covered by operating cash flow (25.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6x coverage).
X
Financial health checks
We assess Broadcom's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Broadcom has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

AVGO Dividends

 What is Broadcom's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.99%
Current annual income from Broadcom dividends. Estimated to be 4.37% next year.
If you bought $2,000 of Broadcom shares you are expected to receive $80 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Broadcom's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • Broadcom's dividend is above the markets top 25% of dividend payers in United States of America (3.71%).
Upcoming dividend payment

Purchase Broadcom before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:AVGO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 29 Analyst Estimates (S&P Global) See Below
United States of America Semiconductor Industry Average Dividend Yield Market Cap Weighted Average of 32 Stocks 2.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:AVGO Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-10-31
2021-10-31 13.92 6.00
2020-10-31 11.58 13.00
2019-10-31 10.60 13.00
NasdaqGS:AVGO Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-06-14 10.600 3.986
2019-06-13 10.600 3.875
2019-03-15 10.600 3.616
2019-03-14 10.600 3.802
2018-12-21 10.600 4.029
2018-12-06 10.600 4.327
2018-09-13 7.000 2.992
2018-09-06 7.000 3.031
2018-06-14 7.000 3.113
2018-06-07 7.000 2.664
2018-03-15 7.000 2.899
2017-12-06 7.000 2.746
2017-08-29 4.080 1.605
2017-06-08 4.080 1.659
2017-06-01 4.080 1.629
2017-03-09 4.080 1.818
2017-03-01 4.080 1.867
2016-12-08 4.080 2.130
2016-09-08 2.040 1.197
2016-09-01 2.040 1.188
2016-06-09 2.000 1.226
2016-06-02 2.000 1.234
2016-03-10 1.960 1.305
2016-03-03 1.960 1.379
2015-12-08 1.760 1.326
2015-09-03 1.680 1.343
2014-12-09 1.400 1.164
2013-12-11 1.000 1.460
2012-12-06 0.680 1.836
2012-08-30 0.640 1.872
2012-06-07 0.600 1.706
2012-03-08 0.520 1.500
2011-12-09 0.480 1.476
2011-09-08 0.440 1.336
2011-06-09 0.360 1.079
2011-03-10 0.320 0.983
2010-12-02 0.280 0.953

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Broadcom has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Broadcom only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of Broadcom's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).
X
Income/ dividend checks
We assess Broadcom's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Broadcom afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Broadcom has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

AVGO Management

 What is the CEO of Broadcom's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Hock Tan
COMPENSATION $5,042,937
AGE 66
TENURE AS CEO 13.3 years
CEO Bio

Mr. Hock E. Tan is Broadcom President, Chief Executive Officer and Director. He has held this position since March 2006. From September 2005 to January 2008, he served as chairman of the board of Integrated Device Technology. Prior to becoming chairman of IDT, Mr. Tan was the President and Chief Executive Officer of Integrated Circuit Systems from June 1999 to September 2005. Prior to ICS, Mr. Tan was Vice President of Finance with Commodore International from 1992 to 1994, and previously held senior management positions with PepsiCo and General Motors. Mr. Tan served as managing director of Pacven Investment, a venture capital fund in Singapore from 1988 to 1992, and served as managing director for Hume Industries in Malaysia from 1983 to 1988.

CEO Compensation
  • Hock's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Hock's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Broadcom management team in years:

5.7
Average Tenure
53
Average Age
  • The average tenure for the Broadcom management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Hock Tan

TITLE
CEO, President & Executive Director
COMPENSATION
$5M
AGE
66
TENURE
13.3 yrs

Tom Krause

TITLE
CFO & Secretary
COMPENSATION
$7M
AGE
40
TENURE
3.3 yrs

Mark Brazeal

TITLE
Chief Legal Officer
COMPENSATION
$6M
AGE
50
TENURE
2.3 yrs

Charlie Kawwas

TITLE
Senior VP & Chief Sales Officer
COMPENSATION
$7M
AGE
47
TENURE
4 yrs

Bryan Ingram

TITLE
Senior VP & GM of Wireless Semiconductor Division
COMPENSATION
$8M
AGE
53
TENURE
11.6 yrs

Boon Ooi

TITLE
Senior Vice President of Global Operations
COMPENSATION
$5M
AGE
64
TENURE
10.4 yrs

Kirsten Spears

TITLE
Chief Accounting Officer
AGE
54
TENURE
3.3 yrs

Andy Nallappan

TITLE
VP of Global Information Technology & Chief Information Officer
TENURE
7.4 yrs

Beatrice Russotto

TITLE
Director of Investor Relations

Debbie Streeter

TITLE
Vice President of Human Resources
Board of Directors Tenure

Average tenure and age of the Broadcom board of directors in years:

1
Average Tenure
59
Average Age
  • The average tenure for the Broadcom board of directors is less than 3 years, this suggests a new board.
Board of Directors

Henry Samueli

TITLE
Chairman of the Board
COMPENSATION
$3M
AGE
63
TENURE
0.5 yrs

Hock Tan

TITLE
CEO, President & Executive Director
COMPENSATION
$5M
AGE
66
TENURE
13.3 yrs

Justine Page

TITLE
Independent Director
COMPENSATION
$61K
AGE
55

Eddy Hartenstein

TITLE
Lead Independent Director
COMPENSATION
$301K
AGE
67
TENURE
0.5 yrs

Peter Marks

TITLE
Independent Director
COMPENSATION
$284K
AGE
65
TENURE
5.5 yrs

Check Kian Low

TITLE
Independent Director
COMPENSATION
$272K
AGE
59
TENURE
2.5 yrs

Gayla Delly

TITLE
Independent Director
COMPENSATION
$348K
AGE
58
TENURE
1.5 yrs

Harry You

TITLE
Independent Director
AGE
59
TENURE
0.4 yrs

Diane Bryant

TITLE
Independent Director
AGE
56
TENURE
0.4 yrs
Who owns this company?
Recent Insider Trading
  • Broadcom insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
03. Apr 19 Sell Kirsten Spears Individual 01. Apr 19 01. Apr 19 -4,000 $306.31 $-1,225,224
22. Mar 19 Sell Thomas Krause Individual 20. Mar 19 20. Mar 19 -14,494 $298.00 $-4,282,307
02. Oct 18 Sell Kirsten Spears Individual 28. Sep 18 28. Sep 18 -1,194 $246.52 $-294,342
X
Management checks
We assess Broadcom's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Broadcom has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

AVGO News

Simply Wall St News

Is Broadcom Inc.'s (NASDAQ:AVGO) CEO Being Overpaid?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. … is worth US$111b, and total annual CEO compensation is US$5.0m. … A first glance this seems like a real positive for shareholders, since Hock Tan is paid less than the average total compensation paid by other large companies.

Simply Wall St -

Do Broadcom Inc.’s (NASDAQ:AVGO) Returns On Capital Employed Make The Cut?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Broadcom: 0.087 = US$5.6b ÷ (US$72b - US$8.3b) (Based on the trailing twelve months to February 2019.) Therefore, Broadcom has an ROCE of 8.7%. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

Should You Buy Broadcom Inc. (NASDAQ:AVGO) For Its Dividend?

Dividend Growth Potential The other half of the dividend investing equation is evaluating whether earnings per share (EPS) are growing. … Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Broadcom has grown its earnings per share at 48% per annum over the past five years. … Earnings growth generally bodes well for the future value of company dividend payments.

Simply Wall St -

Estimating The Fair Value Of Broadcom Inc. (NASDAQ:AVGO)

by taking the foreast future cash flows of the company and discounting them back to today's value. … This is done using the Discounted Cash Flow (DCF) model. … If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model?

Simply Wall St -

Does The Hype Around Broadcom Inc.'s (NASDAQ:AVGO) Growth Justify Its April Share Price?

Broadcom Inc. … (NASDAQ:AVGO) is a stock well-positioned for future growth, but many investors are wondering whether its last closing price of $318.62 is based on unrealistic expectations. … Broadcom is poised for extremely high earnings growth in the near future

Simply Wall St -

Did The Underlying Business Drive Broadcom's (NASDAQ:AVGO) Lovely 417% Share Price Gain?

(NASDAQ:AVGO) share price. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … Over half a decade, Broadcom managed to grow its earnings per share at 47% a year.

Simply Wall St -

Broadcom Inc. (NASDAQ:AVGO) Delivered A Better ROE Than Its Industry

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.28. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

How Should Investors Feel About Broadcom Inc.'s (NASDAQ:AVGO) CEO Pay?

First, this article will compare CEO compensation with compensation at other large companies. … How Does Hock Tan's Compensation Compare With Similar Sized Companies. … has a market cap of US$107b, and is paying total annual CEO compensation of US$5.0m.

Simply Wall St -

Broadcom Inc. (NASDAQ:AVGO): Time For A Financial Health Check

(NASDAQ:AVGO), a US$109b large-cap, often attracts investors seeking a reliable investment in the stock market. … This article will examine Broadcom’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis

Simply Wall St -

Who Has Been Selling Broadcom Inc. (NASDAQ:AVGO) Shares?

But logic dictates you should pay some attention to whether insiders are buying or selling shares. … In the last twelve months, the biggest single sale by an insider was when Chief Accounting Officer Kirsten Spears sold US$294k worth of shares at a price of US$247 per share. … That means that an insider was selling shares at slightly below the current price (US$282).

Simply Wall St -

AVGO Company Info

Description

Broadcom Inc. designs, develops, and supplies a range of semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates through four segments: Wired Infrastructure, Wireless Communications, Enterprise Storage, and Industrial & Other. The Wired Infrastructure segment provides set-top box system-on-chips (SoCs); cable, digital subscriber line, and passive optical networking central office/consumer premise equipment SoCs; Ethernet switching and routing application specific standard products; embedded processors and controllers; serializer/deserializer application specific integrated circuits; optical and copper, and physical layers; and fiber optic laser and receiver components. The Wireless Communications segment offers RF front end modules, filters, and power amplifiers; Wi-Fi, Bluetooth, and global positioning system/global navigation satellite system SoCs; and custom touch controllers. The Enterprise Storage segment provides serial attached small computer system interface, and redundant array of independent disks controllers and adapters; peripheral component interconnect express switches; fiber channel host bus adapters and switches; read channel based SoCs; custom flash controllers; and preamplifiers. The Industrial & Other segment offers optocouplers, industrial fiber optics, motion control encoders and subsystems, and light emitting diodes. The company’s products are used in various applications, including enterprise and data center networking, home connectivity, set-top boxes, broadband access, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. Broadcom Inc. is headquartered in San Jose, California.

Details
Name: Broadcom Inc.
AVGO
Exchange: NasdaqGS
Founded: 2005
$105,859,706,065
398,073,576
Website: http://www.broadcom.com
Address: Broadcom Inc.
1320 Ridder Park Drive,
San Jose,
California, 95131,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS AVGO Common Stock Nasdaq Global Select US USD 06. Aug 2009
DB 1YD Common Stock Deutsche Boerse AG DE EUR 06. Aug 2009
LSE 0YXG Common Stock London Stock Exchange GB USD 06. Aug 2009
WBAG BROA Common Stock Wiener Boerse AG AT EUR 06. Aug 2009
BMV AVGO * Common Stock Bolsa Mexicana de Valores MX MXN 06. Aug 2009
BOVESPA AVGO34 BDR EACH REP 0.2 COM USD0.001 Bolsa de Valores de Sao Paulo BR BRL 08. May 2019
Number of employees
Current staff
Staff numbers
15,000
Broadcom employees.
Industry
Semiconductors
Semiconductors
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/17 01:03
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/06/15
Last earnings filing: 2019/06/14
Last earnings reported: 2019/05/05
Last annual earnings reported: 2018/11/04


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.