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 45.27 is considered Overvalued compared with the five-year average of 21.00. The fair price of Broadcom Inc (AVGO) is between 130.52 to 260.44 according to relative valuation methord. Compared to the current price of 381.03 USD , Broadcom Inc is Overvalued By 46.31%.
Relative Value
Fair Zone
130.52-260.44
Current Price：381.03
46.31%
Overvalued
45.27
PE
1Y
3Y
5Y
Trailing
Forward
35.78
EV/EBITDA
Broadcom Inc. (AVGO) has a current EV/EBITDA of 35.78. The 5-year average EV/EBITDA is 17.51. The thresholds are as follows: Strongly Undervalued below 4.38, Undervalued between 4.38 and 10.95, Fairly Valued between 24.08 and 10.95, Overvalued between 24.08 and 30.64, and Strongly Overvalued above 30.64. The current Forward EV/EBITDA of 35.78 falls within the Strongly Overvalued range.
36.19
EV/EBIT
Broadcom Inc. (AVGO) has a current EV/EBIT of 36.19. The 5-year average EV/EBIT is 17.86. The thresholds are as follows: Strongly Undervalued below 4.45, Undervalued between 4.45 and 11.16, Fairly Valued between 24.56 and 11.16, Overvalued between 24.56 and 31.26, and Strongly Overvalued above 31.26. The current Forward EV/EBIT of 36.19 falls within the Strongly Overvalued range.
22.92
PS
Broadcom Inc. (AVGO) has a current PS of 22.92. The 5-year average PS is 10.14. The thresholds are as follows: Strongly Undervalued below 1.11, Undervalued between 1.11 and 5.63, Fairly Valued between 14.66 and 5.63, Overvalued between 14.66 and 19.18, and Strongly Overvalued above 19.18. The current Forward PS of 22.92 falls within the Strongly Overvalued range.
45.18
P/OCF
Broadcom Inc. (AVGO) has a current P/OCF of 45.18. The 5-year average P/OCF is 20.01. The thresholds are as follows: Strongly Undervalued below 1.88, Undervalued between 1.88 and 10.95, Fairly Valued between 29.08 and 10.95, Overvalued between 29.08 and 38.14, and Strongly Overvalued above 38.14. The current Forward P/OCF of 45.18 falls within the Strongly Overvalued range.
46.05
P/FCF
Broadcom Inc. (AVGO) has a current P/FCF of 46.05. The 5-year average P/FCF is 20.37. The thresholds are as follows: Strongly Undervalued below 1.89, Undervalued between 1.89 and 11.13, Fairly Valued between 29.62 and 11.13, Overvalued between 29.62 and 38.86, and Strongly Overvalued above 38.86. The current Forward P/FCF of 46.05 falls within the Strongly Overvalued range.
Broadcom Inc (AVGO) has a current Price-to-Book (P/B) ratio of 24.55. Compared to its 3-year average P/B ratio of 14.31 , the current P/B ratio is approximately 71.54% higher. Relative to its 5-year average P/B ratio of 12.21, the current P/B ratio is about 101.05% higher. Broadcom Inc (AVGO) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.47%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 4.71% , the current FCF yield is about -100.00% lower.
24.55
P/B
Median3y
14.31
Median5y
12.21
1.39
FCF Yield
Median3y
3.47
Median5y
4.71
Competitors Valuation Multiple
The average P/S ratio for AVGO's competitors is 6.67, providing a benchmark for relative valuation. Broadcom Inc Corp (AVGO) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 22.03%, this premium appears sustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of AVGO increased by 64.35% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 20.42 to 97.88.
The secondary factor is the Revenue Growth, contributed 22.03%to the performance.
Overall, the performance of AVGO in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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