AVGO Broadcom Inc.
$332.31
▼ 3.5%Updated Oct 16, 2:25 PM ET
Report Card
AVGO at a glance — five pillars scored 0–100 from real filed financials.
How the 0–100 rating is calculatedOverall: Strong · 83/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
Price — Past Year
▲ Up 63.7% in the year to Jul 6, 2026
Key Metrics
Market Cap
$1.71T
P/E
53.93x
Forward P/E (est.)
38.52x
ROE
36.4%
Revenue Growth
32.3%
EPS Growth
125.8%
Profit Margin
38.9%
FCF Yield
11.3%
Debt / Equity
0.8x
ROIC
22.0%
Interest Coverage
6.45x
Current Ratio
2.24x
Dividend Yield
0.7%
Implied Growth (rev. DCF)
7.3%
Rating Score
83/100
Business Overview
Broadcom blends a high-margin custom-silicon and networking franchise with a large, sticky infrastructure-software business after the VMware acquisition. Custom AI accelerators for hyperscalers have become a major new growth driver alongside reliable free cash flow.
Economic Moat
Evidence of durable competitive advantage in the filed financials (9 years of history).
Profit margins and economic moats, explainedThe filed history looks like a business competitors struggle to attack: high and steady margins, revenue that grows through cycles, and strong returns on capital.
66.6% average over the last 3 years
±7.0 pts around 59.9% across 9 years
grew in 8 of the last 8 year-over-year periods
positive in 9 of 9 years
22.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Trade Setup & Technical Analysis
Institutional-style technical read — sample, educational only
Downtrend — price ($332.31) is below the 50-day ($409.43) and 200-day ($361.45) averages.
Setup type
Downtrend — avoid or fade rallies
Holding time
1–6 weeks
Risk level
High
Risk / reward
1 : 0.4
Trade levels
Entry zone
$332.31 – $350.92
Stop loss
$434.24
Target 1
$301.29
Target 2
$262.73
Target 3
$239.25
Position sizing: Starter position only; risk ≤ 0.5% of capital and respect the wider stop.
Technical analysis
RSI(14) is soft (41); the MACD histogram is negative (downward momentum). Downtrend — price ($332.31) is below the 50-day ($409.43) and 200-day ($361.45) averages. ATR(14) is $15.51 (~4.7% of price), which sets the stop distance. Recent support sits near $356.43 and resistance near $426.48; the 52-week range is $262.73–$495.00.
Fundamental analysis
Revenue is growing at 32.3%, net margin near 38.9%, ROE roughly 36.4%; shares trade at 54x earnings. Quality score: 83/100.
Options flow
Live options-flow data needs a paid feed, so it isn't shown. For realized volatility, ATR of $15.51 (~4.7%/day) is the range to size stops and any option strikes around.
Volume analysis
The latest session traded 0.8× the 20-day average volume — roughly in line with normal activity.
Catalysts
The next quarterly earnings report is the main near-term catalyst. Technically, watch for a reclaim of $426.48 or a loss of $356.43.
Bullish scenario
Custom AI silicon and networking position it as a key AI beneficiary.
Bearish scenario
Acquisition-driven model carries meaningful leverage.
Invalidation
A daily close above $434.24 invalidates this bearish read.
Probability-based scenario using sample data — not a recommendation or a guarantee of profit. Prioritize capital preservation, use stops, and size positions for risk. Past performance does not predict future results.
Technical Analysis (Educational)
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what AVGO's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. AVGO trades near $332.31, below its 50-day average ($409.43) and 200-day average ($361.45). Price below both averages is a downtrend — momentum is against buyers for now.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 41 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.
Volatility — ATR. Average True Range is the typical daily move. AVGO's is $15.51 (~4.7% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. In the month to Jul 6, 2026, AVGO found buyers near $356.43 (support) and sellers near $426.48 (resistance); its 52-week range then was $262.73–$495.00. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.8× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. The indicators were last computed on Jul 6, 2026; the price is current.
Revenue Growth
4Y CAGR
23.5%
Revenue grew from $17.64B in 2017 to $63.89B in 2025, a 17.5% CAGR. The most recent year grew about 32.3% year over year, a healthy pace pointing to durable demand.
Profitability
Gross Margin
67.8%
Operating Margin
39.9%
Net Margin
—
ROE
36.4%
Gross margin runs near 68.3% with operating margin around 43.4% and net margin near 38.9%. Return on equity of roughly 36.4% indicates strong capital efficiency, and the margin profile has trended high and stable over the period shown.
Debt Analysis
Total Debt
$64.91B
Net Debt
$45.28B
Net Debt / EBITDA
1.78x
Debt / Equity
0.8x
Interest-bearing debt is about 6.0% of market capitalization and the debt-to-equity ratio is roughly 0.80x. Leverage is low, leaving the balance sheet well within comfortable limits.
Cash Flow Analysis
Operating CF
$27.54B
Free Cash Flow
$26.91B
FCF Margin
42.1%
Operating cash flow comfortably exceeds reported net income, and free cash flow yield is around 11.3%. Cash generation is robust and supports buybacks, dividends, and reinvestment.
Dividend Safety
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
What to look for in a dividend stockThe payout is comfortably covered by cash the business actually generates, with a raise habit behind it.
Dividend yield
0.7%
Per share (latest FY)
$2.36
Total paid (latest FY)
$11.14B
History on record
9 years
dividend uses 41% of free cash flow
total dividends increased 8 years in a row
no cuts in the last 9 years on record
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
Valuation Analysis
P/E
53.93x
P/S
28.05x
P/B
18.58x
EV / EBITDA
35x
Shares trade at roughly 54x trailing earnings (30x forward), 28.1x sales, and 35x EV/EBITDA. That is a premium multiple that prices in continued high growth — execution risk is elevated. Our internal rating is Strong.
DCF Fair Value (Educational)
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
How this DCF estimate is calculatedDCF fair value / share
$234.26
Current price
$332.31
Starting FCF (latest 10-K)
$26.91B
Growth, years 1–5
20.0%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Metrics vs. Sector Range
Where AVGO sits versus the Information Technology companies we cover.
Bands show the middle half (25th–75th percentile) of the 98 Information Technology companies in our coverage that have fundamentals data — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
Sector Peer Comparison
How AVGO stacks up against its Information Technology peers — valuation, profitability, and growth versus the sector median.
Among the 98 rated Information Technology companies we cover, AVGO ranks #6 by our overall rating. It trades at a premium versus the sector on earnings (53.9x P/E vs. 36.2x median) with a higher return on equity (36.4% vs. 17.5%) and faster revenue growth (32.3% vs. 17.7%).
P/E vs sector
53.9x
median 36.2x
ROE vs sector
36.4%
median 17.5%
Growth vs sector
32.3%
median 17.7%
Sector rank
#6
of 98 rated
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Information Technology companies by sub-industry and size, preferring ones with full data. Sector medians and rank use the 98 rated companies among the 230 Information Technology stocks we cover. Educational, not a recommendation.
5-Year Projection Model
Project revenue → earnings → price. Edit the assumptions to build your own case.
What drives this projection, and its limits2030 scenario price range (Base Case)
$158.76 – $267.91
vs. $332.31 today · implied CAGR -14% – -4%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $84.33B | $111.32B | $146.94B | $193.96B | $256.02B |
| Net income | $8.43B | $11.13B | $14.69B | $19.40B | $25.60B |
| EPS | $1.63 | $2.16 | $2.85 | $3.76 | $4.96 |
| Share price (low) | $52.29 | $69.03 | $91.12 | $120.27 | $158.76 |
| Share price (high) | $88.25 | $116.48 | $153.76 | $202.96 | $267.91 |
| CAGR (low–high) | -84% / -73% | -54% / -41% | -35% / -23% | -22% / -12% | -14% / -4% |
Educational scenario model, not a forecast or investment advice. It starts from the latest annual revenue in SEC filings. By default, growth is trailing revenue growth (held between 3% and 45% a year), the net margin is the latest one (held between 3% and 50%, so a loss-making company is modeled with a small profit), and the Base case P/E runs from 60% to 100% of today's. Carrying recent growth forward five years can miss badly in either direction. Outputs are only as good as the assumptions. Growth, margin or P/E data is missing for this stock, so some starting values above are placeholders rather than measurements.
Bull Case
- Custom AI silicon and networking position it as a key AI beneficiary.
- VMware adds recurring, high-margin software revenue.
- Strong free cash flow funds dividends and deleveraging.
Bear Case
- Acquisition-driven model carries meaningful leverage.
- Customer concentration in custom-silicon programs.
- Rich valuation after a strong run.
Key Risks
- Integration and leverage risk from large M&A.
- AI-spending cyclicality.
- Customer concentration.
Final Investment Thesis
Broadcom is a diversified AI-and-software compounder with strong cash generation, suited to investors comfortable with an acquisitive, leveraged model.
Analyst Ratings
What 57 Wall Street analysts covering AVGO recommend (September 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Latest SEC Filings
AVGO's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen. How to read a 10-K
In the Idea Lab
AVGO — frequently asked questions
Is AVGO a good stock to buy?
We don't give buy or sell advice. Our model rates Broadcom Inc. Strong (83/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is AVGO's rating on The Stocks School?
Broadcom Inc. currently scores 83/100 (Strong) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does AVGO's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Broadcom Inc.'s SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for AVGO calculated?
It's a scenario model. It starts from the latest annual revenue and net margin in SEC filings, grows revenue at an assumed rate (trailing revenue growth by default), and applies a P/E range built around today's multiple to show the resulting share-price range. When a stock has no growth or P/E data, the starting values are placeholders. It's a tool for thinking, not a prediction.
Is this AVGO analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell AVGO. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.