# Broadcom Inc. (AVGO) fundamentals

Data as of 2026-10-23. NASDAQ, United States. Sector: Technology / Semiconductors & Semiconductor Equipment. Price $323.24, market value $1.54 trillion.

## Valuation
- **P/E (trailing): 43.2×** (5-yr avg 57.3×, 3-yr avg 79.0×). Broadcom Inc. trades at 43.2× trailing earnings, well below its own five-year average of 57.3×: cheap by its own standards. The Technology median in the September 2026 study was 32.1×. Forward P/E is 16.6×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.06**. A PEG of 0.06 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 17.3×**. Each dollar of revenue is priced at 17.3×, a level that requires very high margins or very fast growth to justify.
- **Price / book: 15.5×**. The shares trade at 15.5× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **Free-cash-flow yield: 2.6%** (5-yr avg 4.8%). Free cash flow equals 2.6% of the market value, below its five-year average of 4.8%, so the shares are pricier on cash than usual.
- **Earnings yield: 2.3%**. The inverse of the P/E: 2.3% of the price is earned each year.

## Profitability
- **Gross margin: 68.8%**. Broadcom Inc. keeps 68.8% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 48.0%**. 48.0% of revenue is left after running the business, an exceptional level.
- **Net margin: 36.2%**. 36.2% of each dollar of sales reaches the bottom line.
- **Return on equity: 28.4%**. 28.4% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 26.0%**. Return on all capital, debt included, is 26.0%: comfortably above what that capital costs.
- **Return on assets: 22.4%**. Each dollar of assets produces 22.4% of profit.

## Growth
- **Revenue growth (1 yr): 23.9%** (3-yr 24.4%/yr, 5-yr 21.7%/yr). Revenue grew 23.9% over the last year, against 21.7% a year compounded over five years.
- **EPS growth (1 yr): 287.8%** (3-yr 21.6%/yr, 5-yr 49.8%/yr). Earnings per share rose 287.8%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 18.2%/yr**. Free cash flow has compounded at 18.2% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.80**. Debt is 0.80 times equity, moderate leverage.
- **Current ratio: 1.71** (quick 1.71). Current assets cover the next year's liabilities 1.71 times.
- **Altman Z-score: 11.93**. A Z-score of 11.93 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 8/9**. 8 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 0.80%** ($2.60 per share, trailing). Broadcom Inc. yields 0.80%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 48%** (31% of free cash flow). 48% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 6**. 6 straight years of increases.
- **Dividend growth (5 yr): 12.6%/yr** (1-yr 11.5%). The dividend has compounded at 12.6% a year over five years, doubling roughly every 6 years at that pace.

## Analyst view
- **Analyst consensus: strong_buy** (47 analysts). 47 analysts cover Broadcom Inc.; the consensus is strong_buy, with an average price target of $527.59 (+63% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -4.5%** (YTD -6.3%, 3-mo -17.6%). The shares are down 4.5% over twelve months including dividends.
- **From 52-week high: -34.7%** (11.5% above the low). Trading 35% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 35**. An RSI of 35 is neutral.
- **Beta (1 yr): 2.17** (volatility 46%). Beta of 2.17 against the S&P 500: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=AVGO · Page: https://foliofundamentals.com/stocks/avgo

Not investment advice.