AVGO PE Ratio & Valuation,Is AVGO Overvalued

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 36.01 is considered Overvalued compared with the five-year average of 21.00. The fair price of Broadcom Inc (AVGO) is between 152.10 to 304.01 according to relative valuation methord. Compared to the current price of 359.93 USD , Broadcom Inc is Overvalued By 18.4%.

Relative Value

Fair Zone

152.10-304.01

Current Price：359.93

18.4%

Overvalued

36.01

27.32

EV/EBITDA

Broadcom Inc. (AVGO) has a current EV/EBITDA of 27.32. The 5-year average EV/EBITDA is 17.50. The thresholds are as follows: Strongly Undervalued below 4.70, Undervalued between 4.70 and 11.10, Fairly Valued between 23.90 and 11.10, Overvalued between 23.90 and 30.30, and Strongly Overvalued above 30.30. The current Forward EV/EBITDA of 27.32 falls within the Overvalued range.

28.39

EV/EBIT

Broadcom Inc. (AVGO) has a current EV/EBIT of 28.39. The 5-year average EV/EBIT is 17.86. The thresholds are as follows: Strongly Undervalued below 4.72, Undervalued between 4.72 and 11.29, Fairly Valued between 24.43 and 11.29, Overvalued between 24.43 and 31.00, and Strongly Overvalued above 31.00. The current Forward EV/EBIT of 28.39 falls within the Overvalued range.

17.73

Broadcom Inc. (AVGO) has a current PS of 17.73. The 5-year average PS is 10.15. The thresholds are as follows: Strongly Undervalued below 1.31, Undervalued between 1.31 and 5.73, Fairly Valued between 14.57 and 5.73, Overvalued between 14.57 and 18.99, and Strongly Overvalued above 18.99. The current Forward PS of 17.73 falls within the Overvalued range.

35.78

P/OCF

Broadcom Inc. (AVGO) has a current P/OCF of 35.78. The 5-year average P/OCF is 20.05. The thresholds are as follows: Strongly Undervalued below 2.22, Undervalued between 2.22 and 11.13, Fairly Valued between 28.96 and 11.13, Overvalued between 28.96 and 37.88, and Strongly Overvalued above 37.88. The current Forward P/OCF of 35.78 falls within the Overvalued range.

38.44

P/FCF

Broadcom Inc. (AVGO) has a current P/FCF of 38.44. The 5-year average P/FCF is 20.45. The thresholds are as follows: Strongly Undervalued below 2.09, Undervalued between 2.09 and 11.27, Fairly Valued between 29.63 and 11.27, Overvalued between 29.63 and 38.81, and Strongly Overvalued above 38.81. The current Forward P/FCF of 38.44 falls within the Overvalued range.

Broadcom Inc (AVGO) has a current Price-to-Book (P/B) ratio of 20.95. Compared to its 3-year average P/B ratio of 14.37 , the current P/B ratio is approximately 45.83% higher. Relative to its 5-year average P/B ratio of 12.25, the current P/B ratio is about 71.01% higher. Broadcom Inc (AVGO) has a Forward Free Cash Flow (FCF) yield of approximately 1.58%. Compared to its 3-year average FCF yield of 3.41%, the current FCF yield is approximately -53.63% lower. Relative to its 5-year average FCF yield of 4.68% , the current FCF yield is about -66.18% lower.

20.95

P/B

Median3y

14.37

Median5y

12.25

1.58

FCF Yield

Median3y

3.41

Median5y

4.68

Competitors Valuation Multiple

The average P/S ratio for AVGO's competitors is 7.56, providing a benchmark for relative valuation. Broadcom Inc Corp (AVGO) exhibits a P/S ratio of 17.73, which is 134.58% above the industry average. Given its robust revenue growth of 28.18%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of AVGO increased by 55.25% 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.

28.18%

14.05B → 18.02B

Revenue Growth

58.02%

29.92 → 47.28

Margin Expansion

-30.95%

109.27 → 75.45

P/E Change

55.25%

231.84 → 359.93

Mkt Cap Growth

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Frequently Asked Questions

Is Broadcom Inc (AVGO) currently overvalued or undervalued?

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 152.10 to 304.01 according to relative valuation methord.

How does AVGO's valuation metrics compare to the industry average?

What is the current P/B ratio for Broadcom Inc (AVGO) as of Dec 15 2025?

As of Dec 15 2025, Broadcom Inc (AVGO) has a P/B ratio of 20.95. This indicates that the market values AVGO at 20.95 times its book value.

What is the current FCF Yield for Broadcom Inc (AVGO) as of Dec 15 2025?

As of Dec 15 2025, Broadcom Inc (AVGO) has a FCF Yield of 1.58%. This means that for every dollar of Broadcom Inc’s market capitalization, the company generates 1.58 cents in free cash flow.

What is the current Forward P/E ratio for Broadcom Inc (AVGO) as of Dec 15 2025?

As of Dec 15 2025, Broadcom Inc (AVGO) has a Forward P/E ratio of 36.01. This means the market is willing to pay $36.01 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 Dec 15 2025?

As of Dec 15 2025, Broadcom Inc (AVGO) has a Forward P/S ratio of 17.73. This means the market is valuing AVGO at $17.73 for every dollar of expected revenue over the next 12 months.

AVGO Valuation