Broadcom Inc.AVGONASDAQ
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Executive Summary
Latest Data: Nov 2025Technology•Semiconductors
$1.5TMega Cap
A large-scale business, with exceptional profitability, showing strong growth priced at a premium.
Key Investment Themes
High-growth business (24% revenue expansion)
Exceptional 36% net margins
Premium valuation (66.5x P/E)
Business Narrative
Broadcom, Inc. is a global technology company, which designs, develops and supplies semiconductor and infrastructure software solutions. The company is headquartered in San Jose, California and currently employs 19,000 full-time employees.
TechnologySemiconductors
Recurring Revenue
Revenue Mix
Single segment business
Bull Case
- +Strong revenue growth demonstrates market share expansion
- +Exceptional margins indicate durable competitive advantages
- +Strong cash generation funds reinvestment and shareholder returns
Bear Case
- -Premium valuation leaves limited margin of safety
Company at a Glance
Business Performance
Key Highlights
Positive Signals
- Strong double-digit revenue growth trend
- Best-in-class profit margins above 25%
- Free cash flow growing strongly, indicating quality earnings
- Excellent return on equity above 20%
Watch Areas
- Premium valuation requires continued strong execution
Financial Health
Liquidity
Watch
Current Ratio1.71
1.0-2.0 = Adequate
Cash & Equivalents$16.2B
Leverage
Strong
Debt / Equity0.80
<1.0 = Low leverage
Interest Coverage7.94x
≥5x = Comfortable
Efficiency
Strong
Return on Equity28.4%
≥15% = Excellent
Return on Capital16.4%
≥15% = Excellent
Valuation Assessment
Market Cap
$1.5T
Mega Cap
P/E (TTM)
66.5x
Elevated
vs 5Y avg: 55.9x (+19%)
P/S (TTM)
24.1x
Elevated
vs 5Y avg: 13.1x (+85%)
EV/EBITDA
46.3x
Elevated
vs 5Y avg: 26.4x
(+75%)
(+75%)
P/E Historical Range (5Y)
Min: 16.7xAvg: 55.9xNow: 66.5xMax: 132.2x
P/S Historical Range (5Y)
Min: 5.8xAvg: 13.1xNow: 24.1xMax: 26.7x
EV/EBITDA Historical Range (5Y)
Min: 11.5xAvg: 26.4xNow: 46.3xMax: 50.6x
Valuation Corridor
EXPENSIVE
PEG Ratio
23.21
P/E 66.5x / Growth 286.6% = Expensive
FCF Yield
1.7%
vs Cost of Capital ~8.0% = Weak
P/E Corridor (5Y)66.5x
16.7xFair: 16.7x-103.9x132.2x
P/S Corridor (5Y)24.1x
5.8xFair: 5.8x-21.5x26.7x
EV/EBITDA Corridor (5Y)46.3x
11.5xFair: 11.5x-42.6x50.6x
Detailed Financials
Comprehensive financial statement data for deep analysis
| Metric | Oct 21 | Oct 22 | Oct 23 | Nov 24 | Nov 25 |
|---|---|---|---|---|---|
| Return on Equity | - | - | - | - | - |
| Return on Invested Capital | - | - | - | - | - |
| Gross Margin | 61.4% | 66.5%↑8.4% | 68.9%↑3.6% | 63.0%↓8.6% | 67.8%↑7.5% |
| Operating Margin | 31.0% | 42.8%↑38.0% | 45.2%↑5.6% | 26.1%↓42.3% | 39.9%↑52.8% |
| Net Margin | 24.5% | 34.6%↑41.1% | 39.3%↑13.6% | 11.4%↓70.9% | 36.2%↑216.7% |
| Earnings Yield | - | - | - | - | - |
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