Broadcom Inc. (AVGO)
Technology · Semiconductors · NASDAQ
$343.64
-2.15%
Investru Score
56.0 / 100
Good
Why is AVGO moving?
AVGO is down 2.15% today, amid an otherwise sideways trend.
Recent coverage: Broadcom: Get Ready For A Breakout
Business overview
- The company operates in the semiconductors industry within the technology sector.
- Market capitalization stands at 1,629,197,240,000.
- Asset type is equity.
Broadcom operates on a massive scale within the technology and semiconductor landscape, positioning itself as a major industry heavyweight.
Bull case
Continued robust top-line growth and a high free cash flow margin of 42.1% could allow Broadcom to rapidly grow into its forward valuation while paying down existing debt.
Bear case
High current valuation multiples and elevated leverage could trigger sharp corrections if growth rates slow down from current levels.
AVGO’s Investru Score changed +0.3 points recently. Want to know exactly what changed and why? That’s a Pro feature →
Score breakdown
- Financial Quality
- 72
- Growth
- 57
- Profitability
- 82
- Balance Sheet
- 47
- Valuation
- 32
- Momentum
- 24
Score history
+0.3 over the last 32 days, driven mainly by momentum (-9).
Financial quality
- Return on invested capital is 15.6%.
- Return on equity is 28.4%.
- Free cash flow margin is 42.1%.
- Earnings quality ratio is 1.19.
These metrics demonstrate strong capital allocation efficiency and high cash generation relative to reported earnings.
- ROIC
- 15.6%
- ROE
- 28.4%
- FCF Margin
- 42.1%
- Free Cash Flow (TTM)
- $26.9B
- Earnings Quality (OCF ÷ Net Income)
- 1.2x
Valuation
- P/E ratio is 48.08.
- Forward P/E ratio is 19.01.
- Trailing PEG is 0.17.
- Forward PEG is 0.07.
- Median PEG is 0.12.
- EV-to-EBITDA is 40.23.
- P/S ratio is 18.72.
- FCF yield is 1.7%.
While trailing earnings and sales multiples look elevated, forward-looking valuation metrics suggest growth expectations are priced in reasonably.
- P/E (TTM)
- 48.1x
- Forward P/E
- 19.0x
- PEG (P/E ÷ EPS Growth)
- 0.2x
- Company Median PEG
- 0.1x
- Price / Sales
- 18.7x
- EV / EBITDA
- 40.2x
- FCF Yield
- 1.7%
Key risks
- Valuation multiples such as a trailing P/E of 48.08 and an EV-to-EBITDA of 40.23 leave little room for operational missteps.(Probability: High · Impact: High)
- A cash-to-debt ratio of 0.24 and net debt-to-EBITDA of 1.95 indicate meaningful leverage exposure.(Probability: Medium · Impact: Medium)
- Technical indicators showing the price below both the 50-day and 200-day moving averages reflect persistent selling pressure.(Probability: High · Impact: Low)
Latest earnings
- Q3 FY26 EPS
- $2.68
- Estimate
- $2.45
- Surprise
- +9.6%
- EPS growth year-over-year is 287.8%.
- Earnings quality is 1.19.
Substantial earnings growth accompanied by high earnings quality confirms that profits are supported by real cash generation.
SEC filings
- 10-Q · Q3 FY26 · period ended 2026-08-02Filed 2026-09-10
- 10-Q · Q2 FY26 · period ended 2026-05-03Filed 2026-06-09
- 10-Q · Q1 FY26 · period ended 2026-02-01Filed 2026-03-11
- 10-K · FY25 · period ended 2025-11-02Filed 2025-12-18
- 10-Q · Q3 FY25 · period ended 2025-08-03Filed 2025-09-10
- 10-K · FY24 · period ended 2024-11-03Filed 2024-12-20
- 10-K · FY23 · period ended 2023-10-29Filed 2023-12-14
- 10-K · FY22 · period ended 2022-10-30Filed 2022-12-16
- 10-K · FY21 · period ended 2021-10-31Filed 2021-12-17
Event filings (8-K) aren't covered by this page's data source yet — only 10-K/10-Q are shown above.
Market cap $1.63T · 52-week range $289.96–$495.00 · market data as of Oct 1, 2026, 4:00 PM ET · latest SEC filing: 2018-12-21
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Analyze AVGO with Investru AINot investment advice. Investru AI summarizes public data and AI-generated analysis for informational purposes only.