Broadcom Stock Fundamentals
| AVGO Stock | USD 249.38 24.58 10.93% |
Broadcom fundamentals help investors to digest information that contributes to Broadcom's financial success or failures. It also enables traders to predict the movement of Broadcom Stock. The fundamental analysis module provides a way to measure Broadcom's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Broadcom stock.
At this time, Broadcom's EBIT is very stable compared to the past year. As of the 16th of December 2024, Research Development is likely to grow to about 9.8 B, while Depreciation And Amortization is likely to drop about 2.8 B. Broadcom | Select Account or Indicator |
Broadcom Company Current Valuation Analysis
Broadcom's Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Current Broadcom Current Valuation | 1.11 T |
Most of Broadcom's fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Broadcom is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Broadcom Current Valuation Historical Pattern
Today, most investors in Broadcom Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Broadcom's growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's current valuation growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Broadcom current valuation as a starting point in their analysis.
Broadcom Current Valuation |
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Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
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In accordance with the recently published financial statements, Broadcom has a Current Valuation of 1.11 T. This is much higher than that of the Semiconductors & Semiconductor Equipment sector and significantly higher than that of the Information Technology industry. The current valuation for all United States stocks is significantly lower than that of the firm.
Broadcom Fundamental Drivers Relationships
Comparative valuation techniques use various fundamental indicators to help in determining Broadcom's current stock value. Our valuation model uses many indicators to compare Broadcom value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Broadcom competition to find correlations between indicators driving Broadcom's intrinsic value. More Info.Broadcom is rated third in return on equity category among its peers. It also is rated third in return on asset category among its peers reporting about 0.62 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Broadcom is roughly 1.62 . At this time, Broadcom's Return On Equity is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Broadcom's earnings, one of the primary drivers of an investment's value.Broadcom's Earnings Breakdown by Geography
Broadcom Current Valuation Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Broadcom's direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Broadcom could also be used in its relative valuation, which is a method of valuing Broadcom by comparing valuation metrics of similar companies.Broadcom is currently under evaluation in current valuation category among its peers.
Broadcom ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Broadcom's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Broadcom's managers, analysts, and investors.Environmental | Governance | Social |
Broadcom Fundamentals
| Return On Equity | 0.13 | ||||
| Return On Asset | 0.077 | ||||
| Profit Margin | 0.11 % | ||||
| Operating Margin | 0.32 % | ||||
| Current Valuation | 1.11 T | ||||
| Shares Outstanding | 4.67 B | ||||
| Shares Owned By Insiders | 2.04 % | ||||
| Shares Owned By Institutions | 78.98 % | ||||
| Number Of Shares Shorted | 66.38 M | ||||
| Price To Earning | 22.94 X | ||||
| Price To Book | 15.51 X | ||||
| Price To Sales | 22.43 X | ||||
| Revenue | 51.57 B | ||||
| Gross Profit | 24.95 B | ||||
| EBITDA | 13.46 B | ||||
| Net Income | 5.89 B | ||||
| Cash And Equivalents | 9.98 B | ||||
| Cash Per Share | 24.63 X | ||||
| Total Debt | 39.23 B | ||||
| Debt To Equity | 1.89 % | ||||
| Current Ratio | 2.32 X | ||||
| Book Value Per Share | 59.22 X | ||||
| Cash Flow From Operations | 19.96 B | ||||
| Short Ratio | 3.55 X | ||||
| Earnings Per Share | 1.28 X | ||||
| Price To Earnings To Growth | 1.67 X | ||||
| Target Price | 218.34 | ||||
| Number Of Employees | 20 K | ||||
| Beta | 1.19 | ||||
| Market Capitalization | 1.05 T | ||||
| Total Asset | 72.86 B | ||||
| Retained Earnings | 2.68 B | ||||
| Working Capital | 13.44 B | ||||
| Current Asset | 7.12 B | ||||
| Current Liabilities | 3.08 B | ||||
| Annual Yield | 0.01 % | ||||
| Five Year Return | 3.06 % | ||||
| Net Asset | 72.86 B |
About Broadcom Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Broadcom's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Broadcom using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Broadcom based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.| Last Reported | Projected for Next Year | ||
| Current Deferred Revenue | 1.1 B | 823.8 M | |
| Total Revenue | 51.6 B | 54.2 B | |
| Cost Of Revenue | 19.1 B | 20 B | |
| Stock Based Compensation To Revenue | 0.11 | 0.06 | |
| Sales General And Administrative To Revenue | 0.05 | 0.10 | |
| Research And Ddevelopement To Revenue | 0.18 | 0.18 | |
| Capex To Revenue | 0.01 | 0.02 | |
| Revenue Per Share | 11.15 | 6.70 | |
| Ebit Per Revenue | 0.26 | 0.31 |
Pair Trading with Broadcom
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Broadcom position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Broadcom will appreciate offsetting losses from the drop in the long position's value.Moving against Broadcom Stock
The ability to find closely correlated positions to Broadcom could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Broadcom when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Broadcom - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Broadcom to buy it.
The correlation of Broadcom is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Broadcom moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Broadcom moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Broadcom can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Broadcom Piotroski F Score and Broadcom Altman Z Score analysis. To learn how to invest in Broadcom Stock, please use our How to Invest in Broadcom guide.You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Is Semiconductors & Semiconductor Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Broadcom. If investors know Broadcom will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Broadcom listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 1.881 | Earnings Share 1.28 | Revenue Per Share 10.429 | Quarterly Revenue Growth 0.164 | Return On Assets 0.077 |
The market value of Broadcom is measured differently than its book value, which is the value of Broadcom that is recorded on the company's balance sheet. Investors also form their own opinion of Broadcom's value that differs from its market value or its book value, called intrinsic value, which is Broadcom's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Broadcom's market value can be influenced by many factors that don't directly affect Broadcom's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Broadcom's value and its price as these two are different measures arrived at by different means. Investors typically determine if Broadcom is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Broadcom's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.