AVGO — Broadcom Inc.
Snapshot dated October 15, 2026.
Broadcom Inc. operates as a developer and supplier of semiconductor and infrastructure software solutions that power complex digital networks. Its hardware portfolio includes custom ASIC chips, switch and router chips used in data centers, and wireless connectivity components found in mobile devices. Complementing this, the company maintains an infrastructure software business that includes mainframe software, cybersecurity tools, and enterprise cloud management platforms. Broadcom serves a client base ranging from large-scale data center operators and telecommunications carriers to major manufacturers of consumer electronics. Headquartered in Palo Alto, California, the company maintains a global presence with thousands of employees facilitating these operations. A notable recent development is the company’s acquisition of VMware, which significantly expanded its reach into the enterprise virtualization and cloud software market.
Fair Value / Share
$121.56
Price on October 15, 2026
$339.00
Upside to fair value
-64.14%
Data by Equibles and SEC filings. Figures are as of October 15, 2026 and are not live.
Earnings Yield
Earnings Yield shows how much profit a company generates relative to its share price. EPS ÷ Stock Price.
Stock Price
$339.00
Market Cap
$1,656,693,000,000
Net Income (TTM)
$38,265,000,000
Diluted Shares
4.89 billion
EPS (TTM)
$7.83
Earnings Yield
2.31%
2.3% vs ~4-5% bonds · Semiconductors median 0.9% (46 companies, excl. AVGO)
Show the 46 companies behind the medianHide the companies behind the median
| Company | Net income (TTM) | Market cap | Earnings yield |
|---|---|---|---|
| NVDANvidia Corp | $192.9B | $5.3T | 3.6% |
| TSMTaiwan Semiconductor Manufacturing Co Ltd | $71.2B | $2.2T | 3.2% |
| MUMicron Technology Inc | $85B | $1T | 8.2% |
| AMDAdvanced Micro Devices Inc | $6.4B | $891.9B | 0.7% |
| INTCIntel Corp | -$11.3B | $494.9B | -2.3% |
| ARMArm Holdings PLC /Uk | $1B | $256.5B | 0.4% |
| TXNTexas Instruments Inc | $6.1B | $256.3B | 2.4% |
| MRVLMarvell Technology, Inc. | $2.6B | $215.1B | 1.2% |
| ADIAnalog Devices Inc | $4.1B | $194.6B | 2.1% |
| QCOMQualcomm Inc/De | $9.3B | $181.3B | 5.1% |
| MPWRMonolithic Power Systems, Inc. | $801.9M | $61.1B | 1.3% |
| NXPINXP Semiconductors N.V. | $2.6B | $55.8B | 4.7% |
| ALABAstera Labs, Inc. | $369.5M | $49.6B | 0.7% |
| STMSTMicroelectronics N.V. | $466M | $42B | 1.1% |
| MCHPMicrochip Technology Inc | $478.4M | $38.7B | 1.2% |
| CRDOCredo Technology Group Holding Ltd | $538.3M | $33.9B | 1.6% |
| ONOn Semiconductor Corp | $630.2M | $28.6B | 2.2% |
| GFSGLOBALFOUNDRIES Inc. | $716M | $27.3B | 2.6% |
| TSEMTower Semiconductor Ltd | $289.6M | $23.6B | 1.2% |
| MTSIMACOM Technology Solutions Holdings, Inc. | $240.9M | $22.2B | 1.1% |
| LSCCLattice Semiconductor Corp | $36.3M | $16.3B | 0.2% |
| SITMSITIME Corp | $14.1M | $15.8B | 0.1% |
| SMTCSemtech Corp | -$33.2M | $14.9B | -0.2% |
| SWKSSkyworks Solutions, Inc. | $290.1M | $11.6B | 2.5% |
| QRVOQorvo, Inc. | $339M | $10B | 3.4% |
| RMBSRambus Inc | $230M | $10B | 2.3% |
| SLABSilicon Laboratories Inc. | -$39.1M | $7.4B | -0.5% |
| MXLMaxlinear, Inc | -$103.8M | $7.1B | -1.5% |
| PIImpinj Inc | -$27M | $5.9B | -0.5% |
| ALGMAllegro Microsystems, Inc. | $14.2M | $5.8B | 0.2% |
| CRUSCirrus Logic, Inc. | $430.6M | $5.4B | 8.0% |
| SYNASYNAPTICS Inc | -$490.8M | $4.6B | -10.7% |
| VSHVishay Intertechnology Inc | $28.4M | $4.4B | 0.6% |
| DIODDiodes Inc /Del/ | $86.1M | $4B | 2.2% |
| POWIPower Integrations Inc | $25.1M | $2.5B | 1.0% |
| LASRNlight, Inc. | -$12.5M | $2.1B | -0.6% |
| NVTSNavitas Semiconductor Corp | -$313.1M | $1.7B | -18.2% |
| WOLFWolfspeed, Inc. | -$519.6M | $1.3B | -39.9% |
| AMBQAmbiq Micro, Inc. | -$37M | $1.2B | -3.0% |
| AIPArteris, Inc. | -$39.5M | $912.3M | -4.3% |
| CEVACeva Inc | -$11M | $814.5M | -1.3% |
| AOSLALPHA & OMEGA SEMICONDUCTOR Ltd | -$42.3M | $685.1M | -6.2% |
| NVECNve Corp /New/ | $18M | $503.9M | 3.6% |
| INDIindie Semiconductor, Inc. | -$147.1M | $464.8M | -31.7% |
| LAESSEALSQ Corp | -$41.9M | $413.9M | -10.1% |
| MRAMEverspin Technologies Inc. | -$2.6M | $332.6M | -0.8% |
Peer yields are net income ÷ market cap from the Equibles screener, as of 2026-10-15; AVGO's own figure is EPS ÷ price from SEC filings, so small gaps between the two methods are expected. Data by Equibles.
AI Analysis
Broadcom Inc. currently has an earnings yield of 2.31%, a figure derived from its EPS (TTM) of $7.83 and a stock price of $339.00. This yield sits below the 4-5% return typically available from safe, guaranteed bond alternatives. For the earnings yield to move higher, the company would either need to increase its annual earnings significantly or see its stock price decrease. This yield is 1.4 percentage points above the 0.87% median earnings yield for companies within the Semiconductors industry. A low yield relative to bond benchmarks implies that the current market price reflects an expectation of future earnings growth. This measure is limited by its reliance on historical trailing earnings and does not incorporate forward-looking business strategy or external market risks.
Return on Capital
EBIT ÷ (Net Working Capital + Net Fixed Assets) — how efficiently the business turns capital into profit.
EBIT (TTM)
$42,814,000,000
Net Working Capital
$9,612,000,000
Net Fixed Assets
$3,144,000,000
Invested Capital
$12,756,000,000
Return on Capital
335.64%
335.64% ROC · 2/2: above the 15% floor, above the Semiconductors median of 33.1% (23 companies, excl. AVGO)
Show the 25 companies behind the medianHide the companies behind the median
| Company | EBIT (TTM) | Invested capital | ROC |
|---|---|---|---|
| NVDANvidia Corp | $197.6B | $147.2B | 134.2% |
| TSMTaiwan Semiconductor Manufacturing Co LtdThe SEC has filings for TSM but none carrying a balance sheet, so there is nothing to build these figures on. Foreign private issuers filing under IFRS are the usual case. | — | — | Skipped |
| MUMicron Technology Inc | $99.3B | $89B | 111.6% |
| AMDAdvanced Micro Devices Inc | $6.5B | $18.7B | 34.8% |
| INTCIntel Corp | -$77M | $116.4B | -0.1% |
| ARMArm Holdings PLC /Uk | $900M | $3.2B | 27.8% |
| TXNTexas Instruments Inc | $7.3B | $21.9B | 33.1% |
| MRVLMarvell Technology, Inc. | $1.6B | $2.6B | 61.0% |
| ADIAnalog Devices Inc | $4.9B | $5B | 99.6% |
| QCOMQualcomm Inc/De | $10.2B | $14.8B | 69.2% |
| MPWRMonolithic Power Systems, Inc. | $940.2M | $1.7B | 53.8% |
| NXPINXP Semiconductors N.V. | $3.8B | $4.5B | 85.9% |
| ALABAstera Labs, Inc. | $273.4M | $1.5B | 18.3% |
| STMSTMicroelectronics N.V. | $175M | $16.5B | 1.1% |
| MCHPMicrochip Technology Inc | $794.8M | $2B | 39.7% |
| CRDOCredo Technology Group Holding Ltd | $505M | $915.7M | 55.1% |
| ONOn Semiconductor Corp | $669.7M | $5.4B | 12.4% |
| GFSGLOBALFOUNDRIES Inc.The SEC has filings for GFS but none carrying a balance sheet, so there is nothing to build these figures on. Foreign private issuers filing under IFRS are the usual case. | — | — | Skipped |
| TSEMTower Semiconductor Ltd | $194.2M | $2.7B | 7.2% |
| MTSIMACOM Technology Solutions Holdings, Inc. | $210.8M | $1.2B | 18.0% |
| LSCCLattice Semiconductor Corp | $48M | $200.5M | 23.9% |
| SITMSITIME Corp | -$18.4M | $217.4M | -8.5% |
| SMTCSemtech Corp | $22.4M | $318.4M | 7.0% |
| SWKSSkyworks Solutions, Inc. | $305.4M | $2.3B | 13.6% |
| QRVOQorvo, Inc. | $411.4M | $1.1B | 37.9% |
The same companies as the earnings yield comparison, each measured with AVGO's own formula — EBIT ÷ (net working capital + net fixed assets) — from its latest SEC filings. Capital-free companies rank above every percentage; skipped companies are not in the median. Data by Equibles and SEC filings.
AI Analysis
Broadcom Inc. generates an EBIT of $42.8B on $12.8B of invested capital, which consists of $9.6B in net working capital and $3.1B in net fixed assets. This results in a return on capital of 335.64%. Applying the two-part framework, this figure is above the 15% threshold and is above the Semiconductors median of 33.1%, resulting in a strong verdict of 2 of 2. This measure isolates the operating efficiency of the business by comparing profit generated to the tangible capital required to produce it. Because this ratio focuses purely on capital efficiency, it does not account for external factors like industry-wide cyclicality or shifts in demand. A significant increase in fixed assets or working capital requirements would lower this percentage, though a high reading indicates the company has successfully generated substantial profit while requiring relatively little capital investment.
Acquirer's Multiple
Enterprise Value ÷ Operating Earnings — how many years of operating earnings it would take to buy the whole business.
Closest competitors
| Company | Operating earnings | Enterprise value | Multiple |
|---|---|---|---|
| QCOMQualcomm Inc/DeCompetes with Broadcom in wireless connectivity solutions, RF front-end components, and mobile communications chips. | $10.2B | $193.5B | 18.9x |
| AVGOBroadcom Inc. | $42.8B | $1.7T | 39.6x |
| AMDAdvanced Micro Devices IncCompetes in high-performance data center silicon, custom accelerators, and enterprise computing infrastructure. | $6.5B | $902.7B | 139.1x |
| MRVLMarvell Technology, Inc.Competes directly with Broadcom in data center networking chips, enterprise storage controllers, and custom ASIC design. | $1.6B | $218.5B | 139.9x |
39.6x — above 10x ✗ · at or below peer median of 18 companies (51.2x) ✓
Show the 25 companies behind the medianHide the companies behind the median
| Company | Operating earnings | Enterprise value | Multiple |
|---|---|---|---|
| MUMicron Technology Inc | $99.3B | $974B | 9.8x |
| NXPINXP Semiconductors N.V. | $3.8B | $65.9B | 17.2x |
| QCOMQualcomm Inc/De | $10.2B | $193.5B | 18.9x |
| QRVOQorvo, Inc. | $447.9M | $11.1B | 24.7x |
| NVDANvidia Corp | $197.6B | $5.3T | 26.7x |
| TXNTexas Instruments Inc | $7.3B | $261.4B | 36.0x |
| SWKSSkyworks Solutions, Inc. | $305.4M | $11.5B | 37.7x |
| ADIAnalog Devices Inc | $4.9B | $202.7B | 41.1x |
| ONOn Semiconductor Corp | $669.7M | $30.2B | 45.1x |
| MCHPMicrochip Technology Inc | $794.8M | $45.5B | 57.2x |
| MPWRMonolithic Power Systems, Inc. | $940.2M | $59.5B | 63.3x |
| CRDOCredo Technology Group Holding Ltd | $505M | $33.1B | 65.6x |
| MTSIMACOM Technology Solutions Holdings, Inc. | $210.8M | $20.6B | 97.8x |
| AMDAdvanced Micro Devices Inc | $6.5B | $902.7B | 139.1x |
| MRVLMarvell Technology, Inc. | $1.6B | $218.5B | 139.9x |
| ALABAstera Labs, Inc. | $273.4M | $51.6B | 188.8x |
| LSCCLattice Semiconductor Corp | $48M | $15B | 312.4x |
| SMTCSemtech Corp | $22.4M | $15.2B | 677.4x |
| INTCIntel CorpOperating loss — listed, but not in the median. | -$77M | $517.6B | — |
| SITMSITIME CorpOperating loss — listed, but not in the median. | -$18.4M | $12.9B | — |
| TSMTaiwan Semiconductor Manufacturing Co LtdThe SEC has filings for TSM but none carrying a balance sheet, so there is nothing to build these figures on. Foreign private issuers filing under IFRS are the usual case. | — | — | Skipped |
| ARMArm Holdings PLC /UkIts enterprise value could not be established from its filings. | $900M | — | Skipped |
| STMSTMicroelectronics N.V.Its enterprise value could not be established from its filings. | $551M | — | Skipped |
| GFSGLOBALFOUNDRIES Inc.The SEC has filings for GFS but none carrying a balance sheet, so there is nothing to build these figures on. Foreign private issuers filing under IFRS are the usual case. | — | — | Skipped |
| TSEMTower Semiconductor LtdIts enterprise value could not be established from its filings. | $194.2M | — | Skipped |
| Peer median18 companies with positive operating earnings | 51.2x |
The same Semiconductors companies as the return on capital comparison, each measured with AVGO's own formula — enterprise value ÷ operating earnings — from its latest SEC filings and a quote taken at the same time. Companies with an operating loss are listed but left out of the median; skipped companies could not be measured. Data by Equibles and SEC filings.
Show the enterprise value bridge for each companyHide the enterprise value bridge
AVGO
Debt $61.1B. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. The company separately reports $1.3B of operating lease liabilities as of 2025-11-02 ($1.2B non-current, $144.0M current). These are excluded from debt because operating lease cost already sits inside operating earnings — counting the liability again as debt would charge the business twice for the same thing.
MRVL
Debt $5.0B. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. The company separately reports $323.2M of operating lease liabilities as of 2026-08-01 ($263.9M non-current, $59.3M current). These are excluded from debt because operating lease cost already sits inside operating earnings — counting the liability again as debt would charge the business twice for the same thing.
QCOM
Debt $13.3B. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. The company separately reports $832.0M of operating lease liabilities as of 2025-09-28 ($730.0M non-current, $102.0M current). These are excluded from debt because operating lease cost already sits inside operating earnings — counting the liability again as debt would charge the business twice for the same thing.
AMD
Debt $3.2B. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. The company separately reports $1.1B of operating lease liabilities as of 2026-06-27. These are excluded from debt because operating lease cost already sits inside operating earnings — counting the liability again as debt would charge the business twice for the same thing.
Operating earnings — AVGO
AI Analysis
AVGO has an Acquirer's Multiple of 39.6x, derived from an enterprise value of $1.7T and operating earnings of $42.8B. Among the competitors, QCOM has the lowest multiple at 18.9x (enterprise value of $193.5B and operating earnings of $10.2B), while MRVL has the highest at 139.9x (enterprise value of $218.5B and operating earnings of $1.6B). AMD carries a multiple of 139.1x (enterprise value of $902.7B and operating earnings of $6.5B). Regarding the assessment, AVGO scores one of the two checks: its multiple is above 10x, and at or below the peer median of 18 companies (51.2x). This measure calculates the price to purchase operating earnings, accounting for differences in capital structure and debt levels between firms through its use of enterprise value. The comparison would shift if the company’s operating earnings changed relative to its enterprise value, or if the industry peer median fluctuated.
FS-Score
A 10-check read on financial health, across profitability, balance-sheet stability and operating momentum.
FS-Score
9/10
This company scores high on profitability, stability, and momentum.
Section 1
Current Profitability
3/3
Broadcom displays Strong current profitability, passing all three checks with positive returns and cash flows relative to its asset base.
- Return on Assets is positive at 13.52%
- Free Cash Flow to Total Assets is positive at 15.73%
- Accruals check shows cash-backed earnings with a Cash Flow from Operations to Net Income ratio of 1.19
A score of 3/3 indicates high earnings quality; this result would only change if net income or free cash flow turned negative or if cash flow from operations fell below net income.
Return on Assets (ROA > 0)
PassFree Cash Flow to Total Assets (FCFTA > 0)
PassAccruals (CFO / Net Income > 1)
PassSection 2
Stability
2/3
The Stability score is Mixed, as improvements in debt levels and liquidity were offset by an increase in the share count.
- Leverage declined year over year from 0.4 to 0.36
- Liquidity improved with the current ratio rising from 1.17 to 1.71
- Net Dilution failed as diluted shares outstanding rose from 4.78 billion to 4.85 billion
This section reflects a healthier balance sheet and better short-term debt coverage, though the increase in shares outstanding represents a headwind to existing equity holders.
Change in Leverage (↓ or unchanged)
PassChange in Liquidity (↑ Current Ratio)
PassNet Dilution (annual diluted weighted-average shares, this year vs last)
FailSection 3
Recent Operational Improvements
4/4
Recent Operational Improvements are Strong, with Broadcom showing year-over-year gains in every efficiency and margin metric measured.
- ROA improved from 3.56% to 13.52%
- FCFTA improved from 11.72% to 15.73%
- Gross Margin expanded from 63.03% to 67.77%
- Asset Turnover increased from 0.31 to 0.37
A 4/4 score indicates a business becoming more efficient at generating revenue and profit from its assets and sales, a trend that would reverse if margins or turnover ratios began to contract.
Change in ROA (↑)
PassChange in FCFTA (↑)
PassChange in Gross Margin (↑)
PassChange in Asset Turnover (↑)
PassFramework conclusion
Broadcom achieves a total score of 9/10, driven by Strong profitability and operational improvements alongside a Mixed stability profile. This high score suggest that the company's financial health is robust, indicating that its current market price is likely a reflection of factors other than fundamental business deterioration. While the score measures internal financial stability and operational momentum, it does not account for external market conditions or future industry shifts.
- Gross Margin improved from 63.03% to 67.77%
- Return on Assets increased from 3.56% to 13.52%
- Diluted shares outstanding rose to 4.85 billion
- Asset Turnover improved from 0.31 to 0.37
Intrinsic Value (DCF)
A 10-year discounted cash flow, then the bridge from business value to value per share.
Reported cash flow → unlevered free cash flow
Free Cash Flow (reported)
$39.4B
+ After-Tax Interest Expense
$3B
− After-Tax Interest Income
$328.1M
= Unlevered Free Cash Flow
$42.1B
Business value (10-year DCF)
PV of Years 1–10
$321B
PV of Terminal Value
$310.2B
= Business Value
$631.1B
Terminal value share
49.15%
Business value → share value
Intrinsic Value (business)
$631.1B
+ Cash & Equivalents
$24B
+ Non-operating investments
$0
− Debt
$61.1B
= Shareholders' Value
$594B
÷ Diluted Shares
4.89 billion
= Fair Value / Share
$121.56
Divided by 4.89 billion diluted shares — the weighted-average diluted count from the most recent quarterly income statement, for the quarter ended 2026-08-02.
Risk bucket → discount rate
mid (12%)
Year-1 FCF
$42.1B
Trailing twelve months.
FY2023 $17.6B · FY2024 $19.4B · FY2025 $26.9B
Growth rate (yrs 1–10)
8%
Terminal growth (after yr 10)
3%
Assumed FCF growth: 8%/yr · Revenue growth: last FY +23.9% · 5-yr avg +21.7%/yr
Revenue: FY2020 $23.9B · FY2021 $27.5B · FY2022 $33.2B · FY2023 $35.8B · FY2024 $51.6B · FY2025 $63.9B
The growth assumption applies to free cash flow, not revenue. Free cash flow can grow faster or slower than sales as margins change.
AI Analysis
The valuation of Broadcom begins with a Year-1 free cash flow of $42.1B. This starting base serves as the anchor for a ten-year forecast, during which the model assumes an annual growth rate of 8.00%. While this rate sits well below the company’s recent 23.9% revenue expansion and 21.7% five-year average growth, it reflects a deliberate adjustment for the law of large numbers. Given the current $42.1B base, which incorporates recent major acquisitions and elevated demand for AI infrastructure, sustaining historical growth rates over a decade becomes increasingly difficult as capital expenditures normalize. The forecast assumes a terminal growth rate of 3%, a figure fixed by the methodology rather than selected for this specific business to ensure a conservative long-term outlook. Broadcom is assessed at a mid-risk level, applying a 12% discount rate. This selection balances the firm’s exceptionally stable competitive position—buttressed by mission-critical networking silicon and recurring enterprise software—against the risks inherent in its debt-heavy acquisition strategy and concentrated customer base. This mid-tier risk allocation excludes the firm from the lower 9% discount rate tier, though its predictable cash flows keep it from the 15% high-risk tier. The fair value per share is derived by adding the business’s $24.0B in cash and equivalents to the operating value, then subtracting $61.1B in debt, resulting in a fair value of $121.56. Compared against the current price of $339.00, the upside to fair value is -64.14%. Because the current price sits above the computed fair value, there is no margin of safety. Of the primary assumptions, the 8.00% growth rate would alter the result most significantly if adjusted, as it dictates the trajectory of cash flows over the entire ten-year period.
Overall Verdict
How the five signals above stack up together, then the full synthesis.
Earnings Yield
2.31% vs ~4-5% bond-yield benchmark
Return on Capital
335.64% ROC · 2/2: above the 15% floor, above the Semiconductors median of 33.1%
Acquirer's Multiple
39.6x · 1/2: above 10x, at or below the peer median of 18 companies (51.2x).
FS-Score
9/10 — Financial rockstar
Intrinsic Value
-64.14% upside to fair value
Broadcom presents a distinct divergence between its operating performance and its pricing metrics. The FS-Score of 9/10 and the Return on Capital of 335.64% indicate highly efficient capital utilization and strong financial health relative to its semiconductor peers. Conversely, the Earnings Yield of 2.31% and the Intrinsic Value showing -64.14% upside to fair value suggest the current price sits at a premium relative to its measured fundamentals. The Acquirer's Multiple of 39.6x, while currently at or below the peer median, reflects a valuation that remains elevated against standard acquisition benchmarks. This framework measures the tension between the company's internal efficiency and the price paid for that efficiency. A shift toward a more favorable overall signal would require either a significant expansion in earnings relative to the stock price or a contraction in the current share price toward the intrinsic value estimate, with the Intrinsic Value check acting as the most sensitive indicator of this divergence.
Comments
Notes from readers on AVGO — one each. Comments stay with the company, so they carry across to a later snapshot, and each one shows the date it was written.
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