BROADCOM INC (1AVGO.MI) Fundamental Analysis & Valuation
BIT:1AVGO • US11135F1012
Current stock price
271.05 EUR
+1.5 (+0.56%)
Last:
This 1AVGO.MI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. 1AVGO.MI Profitability Analysis
1.1 Basic Checks
- In the past year 1AVGO was profitable.
- In the past year 1AVGO had a positive cash flow from operations.
- Each year in the past 5 years 1AVGO has been profitable.
- 1AVGO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- 1AVGO's Return On Assets of 14.70% is fine compared to the rest of the industry. 1AVGO outperforms 75.41% of its industry peers.
- 1AVGO has a Return On Equity of 31.27%. This is in the better half of the industry: 1AVGO outperforms 73.77% of its industry peers.
- 1AVGO has a Return On Invested Capital of 11.54%. This is comparable to the rest of the industry: 1AVGO outperforms 55.74% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 1AVGO is below the industry average of 15.39%.
- The 3 year average ROIC (10.89%) for 1AVGO is below the current ROIC(11.54%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.7% | ||
| ROE | 31.27% | ||
| ROIC | 11.54% |
ROA(3y)12.13%
ROA(5y)12.05%
ROE(3y)31.95%
ROE(5y)34.21%
ROIC(3y)10.89%
ROIC(5y)10.78%
1.3 Margins
- 1AVGO has a better Profit Margin (36.57%) than 91.80% of its industry peers.
- 1AVGO's Profit Margin has improved in the last couple of years.
- 1AVGO has a Operating Margin of 41.58%. This is amongst the best in the industry. 1AVGO outperforms 88.52% of its industry peers.
- 1AVGO's Operating Margin has improved in the last couple of years.
- The Gross Margin of 1AVGO (67.93%) is better than 88.52% of its industry peers.
- In the last couple of years the Gross Margin of 1AVGO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.58% | ||
| PM (TTM) | 36.57% | ||
| GM | 67.93% |
OM growth 3Y-1.65%
OM growth 5Y17.55%
PM growth 3Y2.31%
PM growth 5Y26.56%
GM growth 3Y0.66%
GM growth 5Y3.66%
2. 1AVGO.MI Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1AVGO is creating some value.
- 1AVGO has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for 1AVGO has been increased compared to 5 years ago.
- 1AVGO has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 10.97 indicates that 1AVGO is not in any danger for bankruptcy at the moment.
- 1AVGO has a Altman-Z score of 10.97. This is in the better half of the industry: 1AVGO outperforms 65.57% of its industry peers.
- 1AVGO has a debt to FCF ratio of 2.28. This is a good value and a sign of high solvency as 1AVGO would need 2.28 years to pay back of all of its debts.
- 1AVGO's Debt to FCF ratio of 2.28 is in line compared to the rest of the industry. 1AVGO outperforms 55.74% of its industry peers.
- A Debt/Equity ratio of 0.80 indicates that 1AVGO is somewhat dependend on debt financing.
- 1AVGO has a worse Debt to Equity ratio (0.80) than 85.25% of its industry peers.
- Although 1AVGO's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 2.28 | ||
| Altman-Z | 10.97 |
ROIC/WACC1.01
WACC11.39%
2.3 Liquidity
- A Current Ratio of 1.90 indicates that 1AVGO should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.90, 1AVGO is doing worse than 73.77% of the companies in the same industry.
- 1AVGO has a Quick Ratio of 1.73. This is a normal value and indicates that 1AVGO is financially healthy and should not expect problems in meeting its short term obligations.
- 1AVGO has a Quick ratio of 1.73. This is comparable to the rest of the industry: 1AVGO outperforms 49.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.73 |
3. 1AVGO.MI Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 35.74% over the past year.
- Measured over the past years, 1AVGO shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.23% on average per year.
- 1AVGO shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.22%.
- 1AVGO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.74% yearly.
EPS 1Y (TTM)35.74%
EPS 3Y21.91%
EPS 5Y25.23%
EPS Q2Q%28.12%
Revenue 1Y (TTM)25.22%
Revenue growth 3Y24.38%
Revenue growth 5Y21.74%
Sales Q2Q%29.47%
3.2 Future
- Based on estimates for the next years, 1AVGO will show a very strong growth in Earnings Per Share. The EPS will grow by 28.32% on average per year.
- 1AVGO is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 30.05% yearly.
EPS Next Y51.85%
EPS Next 2Y45.28%
EPS Next 3Y37.71%
EPS Next 5Y28.32%
Revenue Next Year64.82%
Revenue Next 2Y58.78%
Revenue Next 3Y46.98%
Revenue Next 5Y30.05%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. 1AVGO.MI Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 42.96, the valuation of 1AVGO can be described as expensive.
- The rest of the industry has a similar Price/Earnings ratio as 1AVGO.
- The average S&P500 Price/Earnings ratio is at 26.21. 1AVGO is valued rather expensively when compared to this.
- Based on the Price/Forward Earnings ratio of 21.70, the valuation of 1AVGO can be described as rather expensive.
- 72.13% of the companies in the same industry are more expensive than 1AVGO, based on the Price/Forward Earnings ratio.
- 1AVGO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.96 | ||
| Fwd PE | 21.7 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1AVGO is valued a bit more expensive than the industry average as 77.05% of the companies are valued more cheaply.
- 1AVGO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.16 | ||
| EV/EBITDA | 41.21 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The excellent profitability rating of 1AVGO may justify a higher PE ratio.
- 1AVGO's earnings are expected to grow with 37.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.83
PEG (5Y)1.7
EPS Next 2Y45.28%
EPS Next 3Y37.71%
5. 1AVGO.MI Dividend Analysis
5.1 Amount
- With a yearly dividend of 0.86%, 1AVGO is not a good candidate for dividend investing.
- 1AVGO's Dividend Yield is a higher than the industry average which is at 0.65.
- Compared to an average S&P500 Dividend Yield of 1.89, 1AVGO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
5.2 History
- On average, the dividend of 1AVGO grows each year by 11.45%, which is quite nice.
Dividend Growth(5Y)11.45%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 1AVGO pays out 45.87% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of 1AVGO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP45.87%
EPS Next 2Y45.28%
EPS Next 3Y37.71%
1AVGO.MI Fundamentals: All Metrics, Ratios and Statistics
BIT:1AVGO (4/2/2026, 7:00:00 PM)
271.05
+1.5 (+0.56%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)03-04 2026-03-04/amc
Earnings (Next)06-03 2026-06-03/amc
Inst Owners79.08%
Inst Owner ChangeN/A
Ins Owners1.91%
Ins Owner ChangeN/A
Market Cap1.28T
Revenue(TTM)68.28B
Net Income(TTM)24.97B
Analysts84.91
Price Target394.59 (45.58%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
Yearly Dividend2.05
Dividend Growth(5Y)11.45%
DP45.87%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.89%
Min EPS beat(2)-0.87%
Max EPS beat(2)2.65%
EPS beat(4)2
Avg EPS beat(4)0.34%
Min EPS beat(4)-0.93%
Max EPS beat(4)2.65%
EPS beat(8)5
Avg EPS beat(8)0.97%
EPS beat(12)7
Avg EPS beat(12)0.89%
EPS beat(16)9
Avg EPS beat(16)0.78%
Revenue beat(2)1
Avg Revenue beat(2)-0.16%
Min Revenue beat(2)-1.29%
Max Revenue beat(2)0.96%
Revenue beat(4)1
Avg Revenue beat(4)-0.85%
Min Revenue beat(4)-1.89%
Max Revenue beat(4)0.96%
Revenue beat(8)3
Avg Revenue beat(8)-0.61%
Revenue beat(12)4
Avg Revenue beat(12)-0.95%
Revenue beat(16)5
Avg Revenue beat(16)-0.96%
PT rev (1m)0%
PT rev (3m)4.75%
EPS NQ rev (1m)10.21%
EPS NQ rev (3m)11.57%
EPS NY rev (1m)0%
EPS NY rev (3m)0.83%
Revenue NQ rev (1m)7.95%
Revenue NQ rev (3m)7.38%
Revenue NY rev (1m)6.83%
Revenue NY rev (3m)7.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.96 | ||
| Fwd PE | 21.7 | ||
| P/S | 21.66 | ||
| P/FCF | 51.16 | ||
| P/OCF | 49.83 | ||
| P/B | 18.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 41.21 |
EPS(TTM)6.31
EY2.33%
EPS(NY)12.49
Fwd EY4.61%
FCF(TTM)5.3
FCFY1.95%
OCF(TTM)5.44
OCFY2.01%
SpS12.51
BVpS14.64
TBVpS-8.84
PEG (NY)0.83
PEG (5Y)1.7
Graham Number45.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.7% | ||
| ROE | 31.27% | ||
| ROCE | 18.55% | ||
| ROIC | 11.54% | ||
| ROICexc | 12.72% | ||
| ROICexgc | 164.02% | ||
| OM | 41.58% | ||
| PM (TTM) | 36.57% | ||
| GM | 67.93% | ||
| FCFM | 42.34% |
ROA(3y)12.13%
ROA(5y)12.05%
ROE(3y)31.95%
ROE(5y)34.21%
ROIC(3y)10.89%
ROIC(5y)10.78%
ROICexc(3y)12.9%
ROICexc(5y)12.93%
ROICexgc(3y)453.16%
ROICexgc(5y)376.99%
ROCE(3y)17.51%
ROCE(5y)17.33%
ROICexgc growth 3Y-4.02%
ROICexgc growth 5Y10.23%
ROICexc growth 3Y-10.3%
ROICexc growth 5Y22.21%
OM growth 3Y-1.65%
OM growth 5Y17.55%
PM growth 3Y2.31%
PM growth 5Y26.56%
GM growth 3Y0.66%
GM growth 5Y3.66%
F-Score8
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 2.28 | ||
| Debt/EBITDA | 1.72 | ||
| Cap/Depr | 8.83% | ||
| Cap/Sales | 1.13% | ||
| Interest Coverage | 10.84 | ||
| Cash Conversion | 79.91% | ||
| Profit Quality | 115.77% | ||
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.73 | ||
| Altman-Z | 10.97 |
F-Score8
WACC11.39%
ROIC/WACC1.01
Cap/Depr(3y)8.12%
Cap/Depr(5y)8.04%
Cap/Sales(3y)1.1%
Cap/Sales(5y)1.24%
Profit Quality(3y)190.31%
Profit Quality(5y)184.64%
High Growth Momentum
Growth
EPS 1Y (TTM)35.74%
EPS 3Y21.91%
EPS 5Y25.23%
EPS Q2Q%28.12%
EPS Next Y51.85%
EPS Next 2Y45.28%
EPS Next 3Y37.71%
EPS Next 5Y28.32%
Revenue 1Y (TTM)25.22%
Revenue growth 3Y24.38%
Revenue growth 5Y21.74%
Sales Q2Q%29.47%
Revenue Next Year64.82%
Revenue Next 2Y58.78%
Revenue Next 3Y46.98%
Revenue Next 5Y30.05%
EBIT growth 1Y50.21%
EBIT growth 3Y22.33%
EBIT growth 5Y43.11%
EBIT Next Year55.36%
EBIT Next 3Y36.46%
EBIT Next 5Y32.68%
FCF growth 1Y57.18%
FCF growth 3Y18.17%
FCF growth 5Y18.34%
OCF growth 1Y57.36%
OCF growth 3Y18.06%
OCF growth 5Y17.95%
BROADCOM INC / 1AVGO.MI Fundamental Analysis FAQ
Can you provide the ChartMill fundamental rating for BROADCOM INC?
ChartMill assigns a fundamental rating of 7 / 10 to 1AVGO.MI.
Can you provide the valuation status for BROADCOM INC?
ChartMill assigns a valuation rating of 4 / 10 to BROADCOM INC (1AVGO.MI). This can be considered as Fairly Valued.
How profitable is BROADCOM INC (1AVGO.MI) stock?
BROADCOM INC (1AVGO.MI) has a profitability rating of 8 / 10.
What is the valuation of BROADCOM INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for BROADCOM INC (1AVGO.MI) is 42.96 and the Price/Book (PB) ratio is 18.52.
Is the dividend of BROADCOM INC sustainable?
The dividend rating of BROADCOM INC (1AVGO.MI) is 4 / 10 and the dividend payout ratio is 45.87%.