One-glance verdict
Overvalued
$140.85 our estimate vs market $362.54
Wall Street consensus: $533.41 (278.7% higher than our fair-value estimate)
157% above our estimate, beyond the bull case
Fundamentals snapshot
Broadcom Inc.
AVGO · NMS · Technology · Semiconductors
Current price
$362.54
52-week range
$289.96 - $495.00
Market cap
$1.72T
Balance sheet
Watch
8.12x Adequate
Net debt $35.44B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 39.5% last year.
- Reward Returns 44.2% on equity, ahead of 66% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Net debt grew 80.7% over 3 years.
What this company does
Broadcom Inc.
Broadcom sells the essential electronic chips and software that power much of the internet and large businesses. The company makes money selling semiconductors (the tiny brains in electronic devices) for data centers and smartphones, and also increasingly from business software that provides predictable, recurring revenue (income that comes in regularly like a subscription). This mix is important because it makes Broadcom a critical supplier for both the physical hardware and the software needed for modern technology like artificial intelligence.
How the company got here
Broadcom's story is one of growth through buying other companies. Its roots go back to a part of Hewlett-Packard that was spun off and eventually became a company called Avago Technologies. Led by its CEO Hock Tan, Avago bought many other businesses, with the most important being the original Broadcom Corporation in 2016, at which point it took the Broadcom name. This was followed by major moves into business software, buying CA Technologies and Symantec's enterprise security unit. Its largest and most recent purchase was VMware in 2023 for $69 billion, which significantly expanded its software business.
What it actually does
Broadcom is a technology company that operates as two main businesses under one roof: one that makes tiny electronic components called semiconductors (or chips), and another that provides complex software for large corporations. You won't find its products on store shelves, but they are essential parts inside many devices you use, from smartphones and Wi-Fi routers to the massive data centers that power the internet and artificial intelligence (AI). Essentially, Broadcom builds the foundational hardware and software that helps move and manage huge amounts of data for the world's biggest companies.
Semiconductor Solutions
This is Broadcom's hardware business and it brings in a little more than half of the company's revenue. It designs and sells a wide variety of chips that handle networking, connectivity, and data storage. For example, it makes the specialized chips that direct traffic inside data centers, the components in your phone that connect to Wi-Fi and Bluetooth, and custom-designed chips that help power artificial intelligence for companies like Google and Meta. Companies like Apple and major cloud providers buy these chips to build into their own products.
Infrastructure Software
This part of the company, which makes up a little less than half of total sales, was built by acquiring several large software companies, most notably VMware. This segment sells critical software that large businesses use to run their complex technology operations, especially their own data centers and cloud computing environments. Its main product, VMware Cloud Foundation, allows companies to do something called virtualization (creating multiple 'virtual' computers on a single physical server to use equipment more efficiently). Customers pay for this software through subscriptions, which creates a steady and predictable stream of revenue for Broadcom.
What management is betting on now
Management's top priority is successfully blending the massive VMware acquisition into its software business, moving customers to subscription-based contracts to create more predictable revenue. A second major bet is on the growth of artificial intelligence, where the company is positioning itself as a key supplier of custom chips and high-speed networking components needed to build powerful AI systems. The company's overall strategy, led by its CEO, is to acquire and run market-leading businesses that are deeply embedded in their customers' operations, and then to run them very efficiently to maximize profit.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$5.48B
FY2025 Q1
$6.01B
FY2025 Q2
$6.41B
FY2025 Q3
$7.02B
FY2025 Q4
$7.47B
FY2026 Q1
$8.01B
FY2026 Q2
$10.26B
FY2026 Q3
$13.66B
Revenue
$29.59B
Net income
—
Diluted EPS
2.68
Operating cash flow
$14.20B
Free cash flow
$13.66B
Fetching…
Sources
Revenue
$22.19B
Net income
—
Diluted EPS
1.91
Operating cash flow
$10.49B
Free cash flow
$10.26B
Fetching…
Sources
Revenue
$19.31B
Net income
—
Diluted EPS
1.50
Operating cash flow
$8.26B
Free cash flow
$8.01B
Fetching…
Sources
Revenue
$18.02B
Net income
—
Diluted EPS
1.75
Operating cash flow
$7.70B
Free cash flow
$7.47B
Fetching…
Sources
Revenue
$15.95B
Net income
—
Diluted EPS
0.85
Operating cash flow
$7.17B
Free cash flow
$7.02B
Fetching…
Sources
Revenue
$15.00B
Net income
—
Diluted EPS
1.03
Operating cash flow
$6.55B
Free cash flow
$6.41B
Fetching…
Sources
Revenue
$14.92B
Net income
—
Diluted EPS
1.14
Operating cash flow
$6.11B
Free cash flow
$6.01B
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Sources
Revenue
$14.05B
Net income
$5.89B
Diluted EPS
-5.63
Operating cash flow
$5.60B
Free cash flow
$5.48B
Fetching…
Sources
Is it cheap or expensive?
Fair value $140.85 vs current price $362.54
Wall Street consensus is the average analyst price target: $533.41 (278.7% higher than our fair-value estimate).
Our most-likely fair value is $140.85 a share — about 61.1% below today's price of $362.54, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $35.4B. Interest coverage 8.1x.
Net debt
$35.44B
Interest coverage
8.12x
Broadcom Inc.'s profit covers its interest bill about 8.1 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Watch
Worse cushion
Baseline
Better cushion
AVGO
BASELINE
Broadcom Inc.
Total debt $59.42B Interest coverage 8.12x This is the baseline the peer rows are being compared against.
Total debt $15.27B Interest coverage 18.67x +130% vs AVGO Carries about 2.3x more debt cushion than AVGO.
Total debt $5.29B Interest coverage 6.61x -19% vs AVGO Carries about 1.2x less debt cushion than AVGO.
Total debt $38.86B Interest coverage 503.42x +6,097% vs AVGO Carries about 62.0x more debt cushion than AVGO.
Total debt $14.05B Interest coverage 11.31x +39% vs AVGO Carries about 1.4x more debt cushion than AVGO.
Total debt $50.54B Interest coverage -0.02x -100% vs AVGO This peer has almost no interest-payment cushion compared with AVGO.
What you should know
The case for and against AVGO
3 Rewards
1 Risk
Rewards
-
Revenue grew 39.5% last year.
-
Returns 44.2% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Net debt grew 80.7% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
46.30x
Forward P/E
18.70x
P/B
17.33x
P/S
19.36x
EV/EBITDA
34.04x
PEG ratio
0.35x
Profitability
How much profit each dollar creates
Gross margin
75.5%
Operating margin
54.3%
Net margin
42.9%
ROE
44.2%
ROA
15.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.60x
Current ratio
2.50x
Quick ratio
1.81x
Total debt
$59.42B
Total cash
$23.98B
Growth
How the business has been compounding
Revenue TTM
$89.10B
Revenue 5Y CAGR
23.5%
EPS TTM
7.83
EPS 5Y CAGR
21.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$40.65B
Free CF TTM
$26.91B
FCF margin
30.2%
Dividend
Shareholder payout
Yield
0.7%
Payout ratio
32.4%
Last ex-div date
2026-09-21