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Broadcom Inc
NASDAQ:AVGO

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Broadcom Inc
NASDAQ:AVGO
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Price: 420.1101 USD 0.64%
Market Cap: $2T

EV/GP

44
Current
63%
More Expensive
vs 3-y average of 27

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
44
=
Enterprise Value
$1.5T
/
Gross Profit
$46.4B

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
44
=
Enterprise Value
$1.5T
/
Gross Profit
$46.4B

Valuation Scenarios

Broadcom Inc is trading above its 3-year average

If EV/GP returns to its 3-Year Average (27), the stock would be worth $257.88 (39% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-85%
Maximum Upside
No Upside Scenarios
Average Downside
64%
Scenario EV/GP Value Implied Price Upside/Downside
Current Multiple 44 $420.11
0%
3-Year Average 27 $257.88
-39%
5-Year Average 16.3 $155.39
-63%
Industry Average 14 $133.66
-68%
Country Average 6.5 $62.21
-85%

Forward EV/GP
Today’s price vs future gross profit

Not enough data available to calculate forward EV/GP

Peer Comparison

All Multiples
EV/GP
P/E
All Countries
Close
Market Cap EV/GP P/E
US
Broadcom Inc
NASDAQ:AVGO
2T USD 44 79.7
US
NVIDIA Corp
NASDAQ:NVDA
4.9T USD 31 40.3
TW
Taiwan Semiconductor Manufacturing Co Ltd
TWSE:2330
55.4T TWD 20.8 29.3
US
Micron Technology Inc
NASDAQ:MU
583.4B USD 17.5 24.8
US
Advanced Micro Devices Inc
NASDAQ:AMD
577.8B USD 33.5 134.3
KR
SK Hynix Inc
KRX:000660
701.7T KRW 11.7 16.1
US
Intel Corp
NASDAQ:INTC
474.6B USD 26.8 -157.5
US
Texas Instruments Inc
NASDAQ:TXN
254.9B USD 24.8 47.5
UK
Arm Holdings PLC
NASDAQ:ARM
223.4B USD 49 282.3
US
Analog Devices Inc
NASDAQ:ADI
196.4B USD 26.7 71.5
US
Qualcomm Inc
NASDAQ:QCOM
192.9B USD 7.8 35.3

Market Distribution

Higher than 95% of companies in the United States of America
Percentile
95th
Based on 9 428 companies
95th percentile
44
Low
0 — 4.2
Typical Range
4.2 — 10.6
High
10.6 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 4.2
Median 6.5
70th Percentile 10.6
Max 1 764 211.7

Broadcom Inc
Glance View

Broadcom Inc., a titan in the semiconductor and infrastructure software industry, has a storied journey that mirrors the evolution of modern technology. Originally emerging from the fusion of Avago Technologies and Broadcom Corporation in 2016, the company has steadily expanded its horizons. Anchoring its presence in the global market, Broadcom crafts an array of semiconductor devices designed for a myriad of applications—from data centers and networking to broadband and wireless connectivity. This tangible hardware portfolio is crucial in enabling the seamless transmission of data across networks, supporting the robust demand from tech giants for reliable and efficient communication components. Broadcom’s commitment to innovation has been evident through its relentless advancements in designing integrated circuits that facilitate data traffic, power-efficient chips, and wireless communication systems crucial to the infrastructure of connected devices. Parallel to its chipmaking prowess, Broadcom has strengthened its position through strategic diversification into infrastructure software. By acquiring established entities in cybersecurity, enterprise software, and data analytics, the company has widened its revenue channels considerably. This software division focuses on solutions that range from network optimization and security modules to enterprise IT services, catering primarily to large enterprises that depend on comprehensive IT ecosystems. Broadcom monetizes its offerings through long-term contracts and subscription services, ensuring a steady cash flow that enhances its financial stability. This dual strategy—melding cutting-edge semiconductor technologies with robust software services—provides Broadcom a comprehensive approach to capitalizing on the ever-growing need for technology solutions, while systematically embedding itself deep within the fabric of global enterprises.

AVGO Intrinsic Value
256.0419 USD
Overvaluation 39%
Intrinsic Value
Price $420.1101
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