Stock · AVGO · Technology

Broadcom Inc

United States · Large Cap · listed since 2009 · Revenue 12 mo. $89.1B

Price as of 11/06/2026

StockScorer score
7.3
of 10 8 of 11 points High Match To the score
Price
$293.69
1 Y −27.0%
Market cap
$1.4T
Phase
Growth
revenue growing, core business profitable
Revenue +24.4% a year (3 years)EBIT margin 39.9%Payout 68.5% of operating cash flow

Summary

Broadcom Inc is around the middle of the Technology sector overall

47.9 of 100

Mean of the six area values. Each area value is the mean of the stock's ranks among the companies in its sector. 50 is the middle of the sector, not a share of companies beaten.

Analysis

What the price requires

The price requires 21.7% FCF growth a year: more than over the last 5 years, less than over the last 10 years.

If free cash flow stays at €24.2B (2025), it supports €268.4B. The remaining €1T of the market value assume it grows 21.7% a year for 10 years and not at all afterwards.

Required FCF growth per year

21.7%

no growth afterwards

Market value breakdown€1.3T market value, price as of 11/06/2026

€268.4B without growth
€1T priced-in growth
  • 5 yrs achieved 15.8%
  • 10 yrs achieved 26.3%
  • priced in 21.7%

Valuation against its own history

Price to operating cash flow 35.3×, within its usual range.

Middle half of 20 quarters: 19.7× to 51.9×, median 35.4×.

Measures only against its own past, not against what the company is worth. Price as of 11/06/2026.

1 sign supports the expectation, 2 speak against it.

What supports it

with respect to the priced-in expectation

  • Low capital needs capex median 1.8% of revenue (10 years)

What speaks against it

with respect to the priced-in expectation

  • Share count rising despite money spent on own shares shares +1.6% year on year
  • Volatile earnings 3 drops or sign changes in up to 10 years

AI summary of the 2025 annual report

The business of Broadcom Inc according to its report

A language model selected and condensed statements from the report. Each statement carries a verbatim quote. The selection is not complete and shows the state of the report. It gives no rating and does not feed into the score.

Form 10-K, fiscal year ended 11/02/2025, filed 12/18/2025. Open the report at the SEC

Revenue by segment, fiscal year ended 11/02/2025

SegmentShareRevenue
Semiconductor Solutions
57.7%
$36.9B
Infrastructure Software
42.3%
$27B

From the report's structured data (XBRL), not from the language model. The sum can differ slightly from group revenue.

Business model according to the report

  • The company supplies semiconductor chips and related solutions, including complex digital and mixed-signal devices built on silicon wafers.

    Quote
    Our semiconductor and semiconductor-based solutions include a broad portfolio of complex digital and mixed signal devices based on silicon wafers
  • The company offers infrastructure software in five portfolios: private cloud, mainframe, cybersecurity, enterprise software and FC SAN management.

    Quote
    We offer five major infrastructure software portfolios: Private Cloud, Mainframe Software, Cybersecurity, Enterprise Software and FC SAN Management.
  • Semiconductor products are offered in five main end markets: networking connectivity, wireless device connectivity, servers and storage systems, broadband and industrial.

    Quote
    We offer our semiconductor and semiconductor-based solutions in five major end markets: Networking Connectivity, Wireless Device Connectivity, Servers and Storage Systems, Broadband and Industrial.
  • The company offers complete system-on-chip platforms for set-top boxes (STBs) used with cable, satellite, Internet Protocol television, over-the-top and terrestrial services.

    Quote
    We offer complete SoC platform solutions for cable, satellite, Internet Protocol television, over-the-top and terrestrial STBs.

Customers according to the report

  • Distributors, OEMs and their contract manufacturers usually account for most of the company's semiconductor sales.

    Quote
    Distributors and OEMs, or their contract manufacturers (“CMs”), typically account for the substantial majority of our semiconductor sales.
  • Software customers are generally large enterprises with computing environments from several vendors, in most major industries worldwide.

    Quote
    Our software customers generally consist of large enterprises that have computing environments from multiple vendors and are in most major industries worldwide
  • Many of the world's largest companies, including most Fortune 500 companies, and many government agencies use the company's infrastructure and security software.

    Quote
    Many of the largest companies in the world, including most of the Fortune 500, and many government agencies rely on our infrastructure and security software solutions

Competition according to the report

  • Competitors in semiconductor solutions include integrated device makers, fabless chip companies (firms that design chips but do not own factories) and the in-house resources of large OEMs.

    Quote
    Competitors in semiconductor solutions include integrated device manufacturers, fabless semiconductor companies and the internal resources of large integrated OEMs.
  • In infrastructure software, the company competes with large enterprise software vendors that offer cloud, security, mainframe, enterprise and other software.

    Quote
    In infrastructure software, we compete with large enterprise software vendors that provide cloud, security, mainframe, enterprise and other software solutions
  • The company's ability to compete depends on a number of factors. These include quality, technical performance, price, product features, product compatibility, design capability, engineering expertise, responsiveness to customers, innovation, availability, delivery, reliability and customer support.

    Quote
    Additionally, our ability to compete effectively depends on a number of factors, including: quality, technical performance, price, product features, product system compatibility, system-level design capability, engineering expertise, responsiveness to customers, new product innovation, product availability, delivery timing and reliability, and customer sales and technical support.

Risks according to the report

  • The company believes its five largest end customers, across all sales channels, together accounted for about 40% of net revenue in fiscal 2025.

    Quote
    We believe aggregate sales, through all channels, to our top five end customers accounted for approximately 40% of our net revenue for fiscal year 2025.
  • In fiscal 2025, about 95% of the wafers made by the company's contract manufacturers were produced by TSMC.

    Quote
    During fiscal year 2025, approximately 95% of the wafers manufactured by our CMs were produced by TSMC.
  • Some of these AI customers may have limited resources or capital and may be unable to pay for the AI infrastructure they need.

    Quote
    Some of these AI customers may have constrained resources or capital and may be unable to pay for their required AI infrastructure
  • In fiscal 2025, the company bought about two-thirds of its manufacturing materials from five suppliers. Some of these five suppliers are the only source for the materials they provide.

    Quote
    During fiscal year 2025, we purchased approximately two-thirds of our manufacturing materials from five materials suppliers, some of which are single source suppliers.

Since the last quarter

Q2 → Q3 2026

Mostly better than the previous quarter: 5 of 5 changes for the better.

  • Revenue, 12 mo.$75.5B → $89.1B+18.1%better
  • FCF, 12 mo.$32.8B → $39.4B+20.3%better
  • EBIT margin43.6% → 48.4%+4.7 ppbetter
  • Net debt$45.3B → $35.4B−21.7%better
  • Return on equity33.4% → 38.4%+5.0 ppbetter

3 more unchanged: Gross margin, FCF margin, Shares outstanding

Derivation

How the sector comparison is derived

Each area value is the average of its metrics' ranks within the sector (0 to 100, 50 is the middle). For metrics where lower is better, the rank is mirrored. The overall value is the average of the area values.

Price as of 11/06/2026.

Profitability85.2above the middleEarns more than the sector: FCF margin 42.13%, sector 18.54%.
MetricStockSector medianPosition in sector
Return on equity28.45%14.60%Rank 78
Return on capital (Greenblatt)163.47%29.77%Rank 90
EBIT margin39.89%17.40%Rank 91
FCF margin42.13%18.54%Rank 94
Gross margin67.77%48.47%Rank 72
Growth66.6above the middleGrows faster than the sector: Earnings growth, 5 years per year 46.63%, sector 14.07%.
MetricStockSector medianPosition in sector
Revenue growth, 1 year23.87%12.70%Rank 77
Earnings growth, 3 years per year20.59%9.54%Rank 74
Earnings growth, 5 years per year46.63%14.07%Rank 92
Sustainable growth (ROE × retained earnings)0.98%2.87%Rank 24
Valuation22.0below the middleValued higher than the sector: EV/sales 22.97, sector 5.18.
MetricStockSector medianPosition in sector
Earnings yield1.62%2.64%Rank 28
FCF yield1.90%3.06%Rank 33
EV/saleslower is better22.975.18Rank 6
EV/EBITlower is better57.5926.24Rank 21
Momentum24.1below the middleShare price doing worse than the sector: Share price, 3 months −26.21%, sector −5.84%.
MetricStockSector medianPosition in sector
Share price, 1 year−27.01%−0.59%Rank 22
Share price, 6 months−31.22%−4.46%Rank 18
Share price, 3 months−26.21%−5.84%Rank 17
Distance from 52-week high−39.01%−33.23%Rank 40
Quality53.1around the middleQuality about like the sector.
MetricStockSector medianPosition in sector
Accruals (Sloan)lower is better−2.28%1.65%Rank 75
Change in share countlower is better1.57%−0.17%Rank 18
Dividend streak in years158Rank 86
Price reaction to results, market-adjusted−3.87%−1.57%Rank 33
Balance sheet & risk36.6below the middleMore risk than the sector: Net debt/EBITDA 1.41, sector −0.20.
MetricStockSector medianPosition in sector
Equity ratio47.51%53.98%Rank 39
Net debt/EBITDAlower is better1.41−0.20Rank 19
Debt to equitylower is better0.800.33Rank 23
Volatility, 1 yearlower is better46.07%50.37%Rank 66

Ten years in figures

Revenue from $13.2B (2016) to $63.9B (2025), 19.1% a year.

Fiscal years, amounts in USD
YearRevenue, $BEBIT marginFCF, $BSharesNet debt, $B
201613.2−3.1%2.73.83B10.5
201717.613.4%5.54.21B6.3
201820.824.6%8.24.31B13.2
201922.615.2%9.34.19B27.7
202023.916.8%11.64.21B33.4
202127.531.0%13.34.29B27.6
202233.242.8%16.34.23B27.1
202335.845.3%17.64.27B25.0
202451.626.1%19.44.78B58.2
202563.939.9%26.94.85B49.0
7.3 / 10High MatchStockScorer score8 of 11 points

5 of 7 StockScorer Score rules met · How the score is built

Broadcom Inc mainly meets criteria in the Profitability category. Result from 18 strategies checked.

This stock · Profitability: 100%This stock · Growth: 100%This stock · Valuation: 0%This stock · Momentum: 0%Median of all stocks · Profitability: 33%Median of all stocks · Growth: 0%Median of all stocks · Valuation: 0%Median of all stocks · Momentum: 0%50%100%ProfitabilityGrowthValuationMomentumThis stockMedian of all stocks

How Broadcom Inc's score is built

Broadcom Inc is rated here with the StockScorer Score strategy, the flagship rule set. It compares return and cash-flow metrics with the median of the company's own sector and checks growth and price trend.

5 of 7 rules met

8 of 11 points

  1. Free cash flow yield above the sector mediannot met0 of 2 points
  2. Return on capital (Greenblatt ROC) above the sector medianmet2 of 2 points
  3. Return on equity above the sector medianmet1 of 1 point
  4. Free cash flow margin above the sector medianmet2 of 2 points
  5. Revenue growth above 15%met2 of 2 points
  6. 3-year earnings growth above 12% p.a.met1 of 1 point
  7. 12-month share price more than 20 percentage points ahead of the marketnot met0 of 1 point
  8. Exclusion: financial and real estate stocksdoes not apply

Detail data

How does Broadcom Inc stock perform across 18 strategies?

Excerpt from 18 strategies checked. The full evaluation is visible after a free sign-up.

12 more strategies locked

With a free account, you can see the match across all strategies checked in one complete overview.

  • Altman Z-Score: Stress Test
  • Earnings Quality: Accrual Check (Sloan)
  • Dividend Aristocrats & Continuity
  • Balanced GARP
  • Magic Formula: Value + Quality
  • Defensive: Low Volatility
  • Acquirer's Multiple: EV/EBIT Deep Value
  • Levermann Strategy (13 Criteria)
  • PEG Strategy (inspired by Peter Lynch)
  • Trending Value: Value + Momentum
  • Undervalued Stocks: Multi-Factor Check
  • Growth Momentum (CAN SLIM principle)

Broadcom Inc key metrics: P/E, P/B and equity ratio

Selected fundamental metrics for Broadcom Inc.

MetricStockSector
P/E ratio61.635.1
P/B ratio17.55.5
Return on equity (ROE)28.4%14.6%
Equity ratio47.5%54.0%
Debt-to-equity (D/E)0.800.33
Dividend yield0.9%0.9%

Similar stocks in Technology

How comparable stocks in the same sector score in the StockScorer model.

SymbolCompanyRating
AVGOBroadcom Incthis page
MUMicron Technology IncHigh9.1
AMDAdvanced Micro Devices IncMedium5.5
NVDANVIDIA CorporationHigh7.3
2330.TWTaiwan Semiconductor Manufacturing Co. Ltd.locked
000660.KSSK Hynix Inclocked

Frequently asked questions about Broadcom Inc stock

How does Broadcom Inc stock (AVGO) score in the StockScorer model?
Broadcom Inc stock reaches a StockScorer score of 7.3 out of 10, which is a high match with the rule-based strategies. 5 out of 7 flagship profile rules are met.
What is Broadcom Inc's P/E ratio?
Broadcom Inc's P/E ratio is 61.6. The Technology sector median is 35.1.
What sector is Broadcom Inc in?
Broadcom Inc is assigned to the Technology sector. Its rank within the sector is 47.9 out of 100: 100 means the stock leads its peer group of large and mid-cap sector stocks in every measured area.

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