AVGO Valuation

Broadcom Inc

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297.390

-11.26(-3.648%)1D

Overview
Forecast
Valuation
Earnings

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 42.17 is considered Overvalued compared with the five-year average of 19.58. The fair price of Broadcom Inc (AVGO) is between 106.88 to 202.92 according to relative valuation methord. Compared to the current price of 296.79 USD , Broadcom Inc is Overvalued By 46.26%.

Relative Value

Fair Zone

106.88-202.92

Current Price：296.79

46.26%

Overvalued

42.17

Trailing

Forward

32.40

EV/EBITDA

Broadcom Inc. (AVGO) has a current EV/EBITDA of 32.40. The 5-year average EV/EBITDA is 16.45. The thresholds are as follows: Strongly Undervalued below 5.10, Undervalued between 5.10 and 10.77, Fairly Valued between 22.13 and 10.77, Overvalued between 22.13 and 27.81, and Strongly Overvalued above 27.81. The current Forward EV/EBITDA of 32.40 falls within the Strongly Overvalued range.

32.87

EV/EBIT

Broadcom Inc. (AVGO) has a current EV/EBIT of 32.87. The 5-year average EV/EBIT is 16.80. The thresholds are as follows: Strongly Undervalued below 5.18, Undervalued between 5.18 and 10.99, Fairly Valued between 22.61 and 10.99, Overvalued between 22.61 and 28.41, and Strongly Overvalued above 28.41. The current Forward EV/EBIT of 32.87 falls within the Strongly Overvalued range.

20.54

Broadcom Inc. (AVGO) has a current PS of 20.54. The 5-year average PS is 9.35. The thresholds are as follows: Strongly Undervalued below 1.62, Undervalued between 1.62 and 5.48, Fairly Valued between 13.21 and 5.48, Overvalued between 13.21 and 17.08, and Strongly Overvalued above 17.08. The current Forward PS of 20.54 falls within the Strongly Overvalued range.

38.18

P/OCF

Broadcom Inc. (AVGO) has a current P/OCF of 38.18. The 5-year average P/OCF is 18.44. The thresholds are as follows: Strongly Undervalued below 3.07, Undervalued between 3.07 and 10.75, Fairly Valued between 26.12 and 10.75, Overvalued between 26.12 and 33.81, and Strongly Overvalued above 33.81. The current Forward P/OCF of 38.18 falls within the Strongly Overvalued range.

39.42

P/FCF

Broadcom Inc. (AVGO) has a current P/FCF of 39.42. The 5-year average P/FCF is 18.78. The thresholds are as follows: Strongly Undervalued below 3.10, Undervalued between 3.10 and 10.94, Fairly Valued between 26.62 and 10.94, Overvalued between 26.62 and 34.46, and Strongly Overvalued above 34.46. The current Forward P/FCF of 39.42 falls within the Strongly Overvalued range.

Broadcom Inc (AVGO) has a current Price-to-Book (P/B) ratio of 20.86. Compared to its 3-year average P/B ratio of 13.13 , the current P/B ratio is approximately 58.93% higher. Relative to its 5-year average P/B ratio of 11.35, the current P/B ratio is about 83.84% higher. Broadcom Inc (AVGO) has a Forward Free Cash Flow (FCF) yield of approximately 1.61%. Compared to its 3-year average FCF yield of 4.05%, the current FCF yield is approximately -60.36% lower. Relative to its 5-year average FCF yield of 5.02% , the current FCF yield is about -67.99% lower.

20.86

P/B

Median3y

13.13

Median5y

11.35

1.61

FCF Yield

Median3y

4.05

Median5y

5.02

Competitors Valuation Multiple

The average P/S ratio for AVGO's competitors is 8.29, providing a benchmark for relative valuation. Broadcom Inc Corp (AVGO) exhibits a P/S ratio of 21.12, which is 154.82% above the industry average. Given its robust revenue growth of 20.16%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

ASE Technology Holding Co Ltd

United Microelectronics Corp

Advanced Micro Devices Inc

Texas Instruments Inc

10.02

16.38%

184.08B

Performance Decomposition

Market capitalization of AVGO increased by 90.70% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 16.99 to 33.09.

The secondary factor is the Revenue Growth, contributed 20.16%to the performance.

Overall, the performance of AVGO in the past 1 year is driven by Margin Expansion. Which is more sustainable.

20.16%

12.49B → 15.00B

Revenue Growth

94.76%

16.99 → 33.09

Margin Expansion

-24.22%

143.10 → 108.44

P/E Change

90.70%