AVGO Relative Valuation
AVGO's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, AVGO is overvalued; if below, it's undervalued.
Historical Valuation
Broadcom Inc (AVGO) is now in the Overvalued zone, suggesting that its current forward PE ratio of 34.39 is considered Overvalued compared with the five-year average of 21.20. The fair price of Broadcom Inc (AVGO) is between 153.11 to 306.09 according to relative valuation methord. Compared to the current price of 343.77 USD , Broadcom Inc is Overvalued By 12.31%.
Relative Value
Fair Zone
153.11-306.09
Current Price：343.77
12.31%
Overvalued
34.39
PE
1Y
3Y
5Y
26.54
EV/EBITDA
Broadcom Inc. (AVGO) has a current EV/EBITDA of 26.54. The 5-year average EV/EBITDA is 17.65. The thresholds are as follows: Strongly Undervalued below 4.76, Undervalued between 4.76 and 11.20, Fairly Valued between 24.09 and 11.20, Overvalued between 24.09 and 30.54, and Strongly Overvalued above 30.54. The current Forward EV/EBITDA of 26.54 falls within the Overvalued range.
27.31
EV/EBIT
Broadcom Inc. (AVGO) has a current EV/EBIT of 27.31. The 5-year average EV/EBIT is 18.01. The thresholds are as follows: Strongly Undervalued below 4.79, Undervalued between 4.79 and 11.40, Fairly Valued between 24.62 and 11.40, Overvalued between 24.62 and 31.22, and Strongly Overvalued above 31.22. The current Forward EV/EBIT of 27.31 falls within the Overvalued range.
17.15
PS
Broadcom Inc. (AVGO) has a current PS of 17.15. The 5-year average PS is 10.27. The thresholds are as follows: Strongly Undervalued below 1.35, Undervalued between 1.35 and 5.81, Fairly Valued between 14.72 and 5.81, Overvalued between 14.72 and 19.18, and Strongly Overvalued above 19.18. The current Forward PS of 17.15 falls within the Overvalued range.
34.49
P/OCF
Broadcom Inc. (AVGO) has a current P/OCF of 34.49. The 5-year average P/OCF is 20.28. The thresholds are as follows: Strongly Undervalued below 2.30, Undervalued between 2.30 and 11.29, Fairly Valued between 29.27 and 11.29, Overvalued between 29.27 and 38.25, and Strongly Overvalued above 38.25. The current Forward P/OCF of 34.49 falls within the Overvalued range.
37.03
P/FCF
Broadcom Inc. (AVGO) has a current P/FCF of 37.03. The 5-year average P/FCF is 20.71. The thresholds are as follows: Strongly Undervalued below 2.14, Undervalued between 2.14 and 11.42, Fairly Valued between 29.99 and 11.42, Overvalued between 29.99 and 39.27, and Strongly Overvalued above 39.27. The current Forward P/FCF of 37.03 falls within the Overvalued range.
Broadcom Inc (AVGO) has a current Price-to-Book (P/B) ratio of 20.27. Compared to its 3-year average P/B ratio of 14.55 , the current P/B ratio is approximately 39.34% higher. Relative to its 5-year average P/B ratio of 12.40, the current P/B ratio is about 63.55% higher. Broadcom Inc (AVGO) has a Forward Free Cash Flow (FCF) yield of approximately 1.63%. Compared to its 3-year average FCF yield of 3.31%, the current FCF yield is approximately -50.68% lower. Relative to its 5-year average FCF yield of 4.62% , the current FCF yield is about -64.69% lower.
20.27
P/B
Median3y
14.55
Median5y
12.40
1.63
FCF Yield
Median3y
3.31
Median5y
4.62
Competitors Valuation Multiple
The average P/S ratio for AVGO's competitors is 8.80, providing a benchmark for relative valuation. Broadcom Inc Corp (AVGO) exhibits a P/S ratio of 17.15, which is 94.97% above the industry average. Given its robust revenue growth of 28.18%, this premium appears sustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of AVGO increased by 55.36% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 29.92 to 47.28.
The secondary factor is the Revenue Growth, contributed 28.18%to the performance.
Overall, the performance of AVGO in the past 1 year is driven by Margin Expansion. Which is more sustainable.
People Also Watch
MA
Mastercard Inc
584.9USD
0.79%
WMT
Walmart Inc
113.41USD
-0.81%
XOM
Exxon Mobil Corp
119.31USD
-1.44%
JPM
JPMorgan Chase & Co
327.18USD
-2.22%
V
Visa Inc
356.59USD
-0.27%
ORCL
Oracle Corp
194.51USD
0.39%
LLY
Eli Lilly and Co
1098.08USD
3.20%
CVX
Chevron Corp
156.32USD
-0.14%
BRK.B
Berkshire Hathaway Inc
494.06USD
-1.00%
MRK
Merck & Co Inc
108.55USD
-0.29%
Frequently Asked Questions
Is Broadcom Inc (AVGO) currently overvalued or undervalued?
Broadcom Inc (AVGO) is now in the Overvalued zone, suggesting that its current forward PE ratio of 34.39 is considered Overvalued compared with the five-year average of 21.20. The fair price of Broadcom Inc (AVGO) is between 153.11 to 306.09 according to relative valuation methord. Compared to the current price of 343.77 USD , Broadcom Inc is Overvalued By 12.31% .
What is Broadcom Inc (AVGO) fair value?
AVGO's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Broadcom Inc (AVGO) is between 153.11 to 306.09 according to relative valuation methord.
How does AVGO's valuation metrics compare to the industry average?
The average P/S ratio for AVGO's competitors is 8.80, providing a benchmark for relative valuation. Broadcom Inc Corp (AVGO) exhibits a P/S ratio of 17.15, which is 94.97% above the industry average. Given its robust revenue growth of 28.18%, this premium appears sustainable.
What is the current P/B ratio for Broadcom Inc (AVGO) as of Jan 07 2026?
As of Jan 07 2026, Broadcom Inc (AVGO) has a P/B ratio of 20.27. This indicates that the market values AVGO at 20.27 times its book value.
What is the current FCF Yield for Broadcom Inc (AVGO) as of Jan 07 2026?
As of Jan 07 2026, Broadcom Inc (AVGO) has a FCF Yield of 1.63%. This means that for every dollar of Broadcom Inc’s market capitalization, the company generates 1.63 cents in free cash flow.
What is the current Forward P/E ratio for Broadcom Inc (AVGO) as of Jan 07 2026?
As of Jan 07 2026, Broadcom Inc (AVGO) has a Forward P/E ratio of 34.39. This means the market is willing to pay $34.39 for every dollar of Broadcom Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Broadcom Inc (AVGO) as of Jan 07 2026?
As of Jan 07 2026, Broadcom Inc (AVGO) has a Forward P/S ratio of 17.15. This means the market is valuing AVGO at $17.15 for every dollar of expected revenue over the next 12 months.