Broadcom Inc
NASDAQ:AVGO

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Broadcom Inc
NASDAQ:AVGO
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Price: 253.77 USD 1.51% Market Closed
Market Cap: 1.2T USD
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Intrinsic Value

The intrinsic value of one AVGO stock under the Base Case scenario is 133.75 USD. Compared to the current market price of 253.77 USD, Broadcom Inc is Overvalued by 47%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

AVGO Intrinsic Value
133.75 USD
Overvaluation 47%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Valuation History
Broadcom Inc

Valuation History Unavailable

Historical valuation for AVGO cannot be conducted due to limitations such as insufficient data or other constraints.

Valuation In Progress...
Valuation In Progress...
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Fundamental Analysis

Company Overview
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Business Segments
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Economic Moat
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Earnings Call
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Management
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Bear Theses

Customer Concentration Risk – A large portion of Broadcom’s revenue comes from a few key customers, including Apple and major cloud providers. Any loss of a major contract or shift toward in-house chip development by these clients could significantly impact revenue.

Regulatory and Geopolitical Uncertainty – The acquisition of VMware has faced intense regulatory scrutiny, and ongoing U.S.-China trade tensions pose a risk to Broadcom’s global supply chain and customer base. Restrictions on semiconductor exports could limit growth in key international markets.

Cyclical Semiconductor Demand – Despite software diversification, Broadcom remains heavily exposed to semiconductor cycles. A slowdown in cloud spending, weaker enterprise IT budgets, or excess chip supply could pressure margins and revenue growth in the near term.

Bull Theses

Dominance in AI and Data Center Infrastructure – Broadcom is a key supplier of AI-optimized networking chips, custom silicon, and accelerators, making it an essential player in the AI revolution. As demand for AI workloads grows, Broadcom benefits from strong relationships with hyperscalers like Google, Amazon, and Microsoft.

High-Margin Software Expansion (VMware Acquisition) – The $69 billion acquisition of VMware significantly boosts Broadcom’s recurring revenue through enterprise software subscriptions. This shift towards software diversification enhances profitability and reduces cyclicality tied to semiconductor demand.

Strong Financials and Shareholder Returns – Broadcom generates robust free cash flow, allowing for consistent dividend growth and aggressive share buybacks. Its capital-efficient business model supports a ~2% dividend yield and steady EPS expansion.

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
Broadcom Inc

Current Assets 22.2B
Cash & Short-Term Investments 9.5B
Receivables 8.8B
Other Current Assets 3.9B
Non-Current Assets 142.4B
PP&E 2.5B
Intangibles 134.2B
Other Non-Current Assets 5.8B
Current Liabilities 20.6B
Accounts Payable 1.3B
Accrued Liabilities 1.8B
Short-Term Debt 3.9B
Other Current Liabilities 13.6B
Non-Current Liabilities 74.4B
Long-Term Debt 61.8B
Other Non-Current Liabilities 12.7B
Efficiency

Free Cash Flow Analysis
Broadcom Inc

Last Value
3-Years Average
FCF Margin
Conversion Rate

Earnings Waterfall
Broadcom Inc

Revenue
57B USD
Cost of Revenue
-19.2B USD
Gross Profit
37.9B USD
Operating Expenses
-16.3B USD
Operating Income
21.5B USD
Other Expenses
-8.6B USD
Net Income
12.9B USD
Fundamental Scores

AVGO Profitability Score
Profitability Due Diligence

Broadcom Inc's profitability score is 71/100. The higher the profitability score, the more profitable the company is.

Positive Free Cash Flow
Exceptional 3-Year Average ROE
Positive Gross Profit
Positive Operating Income
71/100
Profitability
Score

Broadcom Inc's profitability score is 71/100. The higher the profitability score, the more profitable the company is.

AVGO Solvency Score
Solvency Due Diligence

Broadcom Inc's solvency score is 53/100. The higher the solvency score, the more solvent the company is.

High Altman Z-Score
Long-Term Solvency
Low D/E
Short-Term Solvency
53/100
Solvency
Score

Broadcom Inc's solvency score is 53/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

AVGO Price Targets Summary
Broadcom Inc

Wall Street analysts forecast AVGO stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for AVGO is 278.18 USD with a low forecast of 183.06 USD and a high forecast of 357 USD.

Lowest
Price Target
183.06 USD
28% Downside
Average
Price Target
278.18 USD
10% Upside
Highest
Price Target
357 USD
41% Upside
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Dividends

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Shareholder Yield

Current shareholder yield for AVGO is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
Dividend Yield
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Buyback Yield
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Debt Paydown Yield
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Competitive Landscape

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What is the Intrinsic Value of one AVGO stock?

The intrinsic value of one AVGO stock under the Base Case scenario is 133.75 USD.

Is AVGO stock undervalued or overvalued?

Compared to the current market price of 253.77 USD, Broadcom Inc is Overvalued by 47%.

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