One-glance verdict
Overvalued
$145.89 our estimate vs market $321.68
Wall Street consensus: $529.10 (262.7% higher than our fair-value estimate)
120% above our estimate, beyond the bull case
Fundamentals snapshot
Broadcom Inc.
AVGO · NMS · Technology · Semiconductors
Current price
$321.68
52-week range
$289.96 - $495.00
Market cap
$1.54T
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 Inc. makes computer chips and software for big companies and data centers, like those running artificial intelligence or cloud services. Most of their money comes from selling these chips and software, which is important because it shows how well they are selling their core products. The company is also focused on building an "ecosystem" (a connected group of products and services) that makes it easier for customers to use their technology together.
How the company got here
Broadcom's story is a tale of strategic acquisitions and a focus on essential technology. It began in 1961, evolving over decades through various mergers and name changes, with a significant shift occurring when Avago Technologies acquired Broadcom Corporation in 2016, adopting the Broadcom name. This move consolidated a wide range of semiconductor and infrastructure software capabilities. The company has since continued to grow, notably with its acquisition of VMware, significantly expanding its software offerings and positioning itself as a major player in enterprise solutions.
What it actually does
At its core, Broadcom designs and supplies the critical electronic components and software that power much of today's technology. Think of the chips inside your Wi-Fi router, the components that enable fast internet connections, and the software that helps large companies manage their computer systems. They create the building blocks that allow devices to communicate with each other and the software that keeps complex digital operations running smoothly.
Semiconductor Solutions
This segment is all about the physical chips and components that make electronic devices work. Broadcom creates the 'brains' and 'nervous systems' for networking equipment, allowing data to flow quickly between computers and servers, which is crucial for everything from your home internet to massive data centers. They also make chips for wireless devices, helping your phone and other gadgets connect to networks, and components for broadband internet access, like those found in your cable modem or set-top box. This part of the business is a major revenue driver, forming the foundation of many digital interactions.
Infrastructure Software
This segment, significantly boosted by the VMware acquisition, focuses on the software that large organizations use to run their complex IT operations. It includes tools for managing private cloud environments, which are essentially a company's own secure data centers, and software for mainframe computers, the powerful workhorses behind many financial and business systems. They also offer cybersecurity solutions to protect company data and networks, and application networking tools that help software run efficiently and securely. This business provides essential services for businesses to operate and grow in the digital age.
What management is betting on now
Broadcom's current strategy heavily emphasizes integrating its newly acquired VMware software business to offer comprehensive solutions for enterprises. Management is focused on combining their semiconductor expertise with this robust software portfolio to provide end-to-end solutions, particularly in areas like private cloud and artificial intelligence (AI) infrastructure. The goal is to become an indispensable partner for large companies navigating complex digital transformations, offering both the hardware and the software needed to succeed.
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 $145.89 vs current price $321.68
Wall Street consensus is the average analyst price target: $529.10 (262.7% higher than our fair-value estimate).
Our most-likely fair value is $145.89 a share — about 54.6% below today's price of $321.68, 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 $13.56B 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)
41.08x
Forward P/E
16.55x
P/B
15.40x
P/S
17.23x
EV/EBITDA
30.06x
PEG ratio
0.32x
Profitability
How much profit each dollar creates
Gross margin
75.5%
Operating margin
54.3%
Net margin
42.9%
ROE
44.2%
ROA
15.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.60x
Current ratio
2.50x
Quick ratio
2.15x
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
0.8%
Payout ratio
32.4%
Last ex-div date
2026-09-21