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Broadcom (AVGO) Stock Analysis

This is a peer-relative look at Broadcom (AVGO): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Semiconductors & Semiconductor Equipment peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Broadcom (AVGO)
Profile ItemAVGO
NameBroadcom Inc.
Country/RegionUnited States
GICS SectorInformation Technology
GICS Industry GroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
GICS Sub-IndustrySemiconductors
Market Capitalization1,535.58 billion USD
CurrencyUSD
ExchangeNasdaq
Listing DateAugust 6, 2009
Security TypeCommon Stock

Price Performance

Cumulative Growth

AVGO
GSPC
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Broadcom (AVGO) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Broadcom (AVGO) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Broadcom (AVGO) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Broadcom (AVGO) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
MetricCurrent stock: AVGOIndustry group median
Total Return (1Y)-5.87%28.56%
Total Return (3Y, Annualized)56.78%24.37%
Total Return (5Y, Annualized)46.80%10.31%

Risk Profile

Drawdown History

AVGO
GSPC
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Broadcom (AVGO) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Broadcom (AVGO) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Broadcom (AVGO) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
MetricCurrent stock: AVGOIndustry group median
Volatility (1Y, Annualized)45.91%71.41%
Beta (5Y)1.491.85
Max Drawdown (5Y)-41.15%-64.89%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. AVGO is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Broadcom (AVGO) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
MetricCurrent stock: AVGOIndustry group median
Sharpe Ratio (1Y)-0.220.37
Sortino Ratio (1Y)-0.310.56

Profitability

ROE (TTM)

Broadcom (AVGO) posts ROE of 44.25%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.

AVGO

Semiconductors & Semiconductor Equipment industry group

44.25%

Group distribution
AVGO
44.25%
Max
44.25%
Q3
21.16%
Median
9.12%
Q1
-2.07%
Min
-16.89%
Largest peers
NVDA
117.21%
SKHY
92.68%
MU
88.26%
ASML
65.64%
AVGO
44.25%
TSM
41.86%
AMD
10.20%
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Where Broadcom (AVGO) stands on ROE within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Broadcom (AVGO) keeps 42.94% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

AVGO

Semiconductors & Semiconductor Equipment industry group

42.94%

Group distribution
Max
58.15%
AVGO
42.94%
Q3
24.02%
Median
10.09%
Q1
0.00%
Min
-34.50%
Largest peers
SKHY
85.62%
MU
63.80%
NVDA
63.66%
TSM
51.12%
AVGO
42.94%
ASML
34.14%
AMD
15.58%
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Where Broadcom (AVGO) stands on net margin within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Broadcom (AVGO) turns 54.31% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

AVGO

Semiconductors & Semiconductor Equipment industry group

54.31%

Group distribution
AVGO
54.31%
Max
54.31%
Q3
23.80%
Median
15.10%
Q1
3.21%
Min
-27.51%
Largest peers
MU
80.68%
SKHY
76.33%
NVDA
66.24%
TSM
58.66%
AVGO
54.31%
ASML
44.36%
AMD
17.25%
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Where Broadcom (AVGO) stands on operating margin within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Broadcom (AVGO) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
MetricCurrent stock: AVGOIndustry group median
ROE (TTM)44.25%9.12%
ROA (TTM)15.37%4.13%
Net Margin (TTM)42.94%10.09%
Operating Margin (TTM)54.31%15.10%
Gross Margin (TTM)75.52%49.09%

Growth

Revenue Growth

Broadcom (AVGO) grew revenue 23.87%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

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Broadcom (AVGO): Revenue Growth across different time periods, set against Semiconductors & Semiconductor Equipment industry-group medians.

EPS Growth

Broadcom (AVGO) grew earnings per share 287.80%, above the industry benchmark range. Profits are compounding faster than at any typical peer, though a depressed base year can inflate the percentage, so the level of earnings matters alongside the rate.

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Broadcom (AVGO): EPS Growth across different time periods, set against Semiconductors & Semiconductor Equipment industry-group medians.

Growth Metrics

Broadcom (AVGO) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
MetricCurrent stock: AVGOIndustry group median
Revenue Growth (YoY)23.87%9.94%
Revenue Growth (3Y CAGR)24.38%-0.01%
EPS Growth (YoY)287.80%4.81%
EPS Growth (3Y CAGR)21.60%-10.01%

Financial Strength

Current Ratio (MRQ)

Broadcom (AVGO) has current ratio of 2.50, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.

AVGO

Semiconductors & Semiconductor Equipment industry group

2.50

Group distribution
Max
9.75
Q3
5.37
Median
3.30
AVGO
2.50
Q1
2.25
Min
1.03
Largest peers
NVDA
4.59
MU
3.31
AMD
2.61
SKHY
2.59
TSM
2.51
AVGO
2.50
ASML
1.49
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Where Broadcom (AVGO) stands on current ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Broadcom (AVGO) has debt-to-equity ratio of 0.60, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

AVGO

Semiconductors & Semiconductor Equipment industry group

0.60

Group distribution
Max
1.44
Q3
0.65
AVGO
0.60
Median
0.18
Q1
0.04
Min
0.00
Largest peers
AVGO
0.60
NVDA
0.17
TSM
0.12
ASML
0.09
SKHY
0.08
AMD
0.06
MU
0.04
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Where Broadcom (AVGO) stands on debt-to-equity ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Broadcom (AVGO) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
MetricCurrent stock: AVGOIndustry group median
Current Ratio (MRQ)2.503.30
Debt / Equity (MRQ)0.600.18
Net Debt / EBITDA0.68-0.55

Dividends

Dividend Yield (TTM)

Broadcom (AVGO) has dividend yield of 0.80%, in the upper peer-yield quartile while still inside the industry range. The dividend offers more cash income per dollar of share price than most peers, though payout coverage still matters.

AVGO

Semiconductors & Semiconductor Equipment industry group

0.80%

Group distribution
Max
1.12%
AVGO
0.80%
Q3
0.48%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
SKHY
2,847.60%
TSM
1.46%
AVGO
0.80%
ASML
0.48%
NVDA
0.13%
MU
0.07%
AMD
0.00%
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Where Broadcom (AVGO) stands on dividend yield within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Broadcom (AVGO) has payout ratio of 32.44%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.

AVGO

Semiconductors & Semiconductor Equipment industry group

32.44%

Group distribution
Max
45.89%
AVGO
32.44%
Q3
19.14%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
AVGO
32.44%
TSM
24.46%
ASML
22.26%
NVDA
3.54%
MU
0.71%
SKHY
0.00%
AMD
0.00%
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Where Broadcom (AVGO) stands on payout ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Broadcom (AVGO) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
MetricCurrent stock: AVGOIndustry group median
Dividend Yield (TTM)0.80%0.00%
Dividend Payout Ratio (TTM)32.44%0.00%

Valuation

P/E Ratio (TTM)

Broadcom (AVGO) trades at P/E ratio of 42.95, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

AVGO

Semiconductors & Semiconductor Equipment industry group

42.95

Group distribution
Max
131.83
Q3
75.24
AVGO
42.95
Median
42.42
Q1
26.67
Min
8.74
Largest peers
AMD
131.83
AVGO
42.95
ASML
38.68
TSM
27.12
NVDA
26.67
MU
11.81
SKHY
8.74
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Where Broadcom (AVGO) stands on P/E ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Broadcom (AVGO) trades at 17.23 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.

AVGO

Semiconductors & Semiconductor Equipment industry group

17.23

Group distribution
Max
29.47
AVGO
17.23
Q3
13.72
Median
6.92
Q1
3.08
Min
0.01
Largest peers
AMD
20.42
AVGO
17.23
NVDA
16.81
ASML
15.35
MU
7.45
TSM
0.44
SKHY
0.01
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Where Broadcom (AVGO) stands on P/S ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Broadcom (AVGO) trades at 15.40 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.

AVGO

Semiconductors & Semiconductor Equipment industry group

15.40

Group distribution
Max
16.75
AVGO
15.40
Q3
8.96
Median
4.96
Q1
2.62
Min
0.16
Largest peers
ASML
1,349.62
TSM
79.87
NVDA
22.25
AVGO
15.40
AMD
12.55
MU
7.17
SKHY
4.93
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Where Broadcom (AVGO) stands on P/B ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Broadcom (AVGO) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
MetricCurrent stock: AVGOIndustry group median
P/E Ratio (TTM)42.9542.42
P/S Ratio (TTM)17.236.92
P/B Ratio (MRQ)15.404.96
Free Cash Flow Yield (TTM)1.99%1.10%