Broadcom Valuation
| AVGO Stock | USD 202.54 16.12 7.37% |
At this time, the firm appears to be overvalued. Broadcom shows a prevailing Real Value of $208.18 per share. The current price of the firm is $202.54. Our model approximates the value of Broadcom from analyzing the firm fundamentals such as Profit Margin of 0.11 %, return on equity of 0.13, and Current Valuation of 1.08 T as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Broadcom's valuation include:
Price Book 15.1443 | Enterprise Value | Enterprise Value Ebitda 45.3602 | Price Sales 18.8979 | Forward PE 34.3643 |
Overvalued
Today
Please note that Broadcom's price fluctuation is very steady at this time. Calculation of the real value of Broadcom is based on 3 months time horizon. Increasing Broadcom's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Broadcom is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Broadcom Stock. However, Broadcom's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 202.54 | Real 208.18 | Target 238.6 | Hype 219.24 | Naive 206.4 |
The intrinsic value of Broadcom's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Broadcom's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Broadcom helps investors to forecast how Broadcom stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Broadcom more accurately as focusing exclusively on Broadcom's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Broadcom's intrinsic value based on its ongoing forecasts of Broadcom's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Broadcom's closest peers.
Broadcom Cash |
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Broadcom Valuation Trend
Knowing Broadcom's actual value is paramount for traders when making sound investment determinations. Using both Broadcom's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Broadcom Revenue by Product
Broadcom Total Value Analysis
Broadcom is presently forecasted to have valuation of 1.08 T with market capitalization of 974.64 B, debt of 67.57 B, and cash on hands of 9.98 B. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Broadcom fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
1.08 T | 974.64 B | 67.57 B | 9.98 B |
Broadcom Investor Information
About 79.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 0.62. Broadcom last dividend was issued on the 23rd of December 2024. The entity had 10:1 split on the 15th of July 2024. Broadcom is doing better financially today then in previous quarter. It has a moderate probability of reporting better financial numbers in March.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.33 | 0.3103 |
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| Total Cash From Operating Activities | 24.1 B | 23 B |
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Broadcom Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Broadcom has an asset utilization ratio of 31.14 percent. This suggests that the Company is making $0.31 for each dollar of assets. An increasing asset utilization means that Broadcom is more efficient with each dollar of assets it utilizes for everyday operations.Broadcom Ownership Allocation
Broadcom holds a total of 4.69 Billion outstanding shares. The majority of Broadcom outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Broadcom to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Broadcom. Please pay attention to any change in the institutional holdings of Broadcom as this could imply that something significant has changed or is about to change at the company. On February 13, 2025, Representative Julie Johnson of US Congress acquired under $15k worth of Broadcom's common stock.Broadcom Profitability Analysis
The company reported the previous year's revenue of 51.57 B. Net Income was 5.89 B with profit before overhead, payroll, taxes, and interest of 38.79 B.Broadcom Past Distributions to stockholders
About Broadcom Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Broadcom. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Broadcom based exclusively on its fundamental and basic technical indicators. By analyzing Broadcom's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Broadcom's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Broadcom. We calculate exposure to Broadcom's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Broadcom's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 37.4 B | 39.3 B | |
| Pretax Profit Margin | 0.25 | 0.26 | |
| Operating Profit Margin | 0.31 | 0.33 | |
| Net Profit Margin | 0.25 | 0.26 | |
| Gross Profit Margin | 0.61 | 0.39 |
A single share of Broadcom represents a small ownership stake in the entity. As a stockholder of Broadcom, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Broadcom Dividends Analysis For Valuation
As of the 25th of February 2025, Dividend Paid And Capex Coverage Ratio is likely to grow to 3.06, though Dividends Paid is likely to grow to (10.7 B). . As of the 25th of February 2025, Price Earnings To Growth Ratio is likely to grow to 0.24, while Retained Earnings are likely to drop 0.00.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -11.3 B | -10.7 B | |
| Dividend Yield | 0.03 | 0.02 | |
| Dividend Payout Ratio | 0.92 | 0.54 | |
| Dividend Paid And Capex Coverage Ratio | 2.07 | 3.06 |
There are various types of dividends Broadcom can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Broadcom shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Broadcom directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Broadcom pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Broadcom by the value of the dividends paid out.
Broadcom Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 4.8 B | |
| Quarterly Earnings Growth Y O Y | 1.881 | |
| Forward Price Earnings | 34.3643 |
Broadcom Current Valuation Indicators
Broadcom's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Broadcom's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Broadcom, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Broadcom's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Broadcom's worth.When determining whether Broadcom offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Broadcom's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Broadcom Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Broadcom Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Broadcom. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in price. To learn how to invest in Broadcom Stock, please use our How to Invest in Broadcom guide.You can also try the Money Managers module to screen money managers from public funds and ETFs managed around the world.
Is Semiconductors & Semiconductor Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Broadcom. If investors know Broadcom will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Broadcom listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 1.881 | Dividend Share 2.17 | Earnings Share 1.29 | Revenue Per Share | Quarterly Revenue Growth 0.164 |
The market value of Broadcom is measured differently than its book value, which is the value of Broadcom that is recorded on the company's balance sheet. Investors also form their own opinion of Broadcom's value that differs from its market value or its book value, called intrinsic value, which is Broadcom's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Broadcom's market value can be influenced by many factors that don't directly affect Broadcom's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Broadcom's value and its price as these two are different measures arrived at by different means. Investors typically determine if Broadcom is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Broadcom's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.