Avgo Valuation Analysis and Insights

Avgo's valuation is a complex topic, but let's break it down. Avgo's revenue growth rate is 50% YoY, indicating a strong and consistent upward trend.

This growth is fueled by Avgo's innovative approach to the market, which has allowed it to capture a significant share of the industry. Avgo's valuation multiple is 10x, which is higher than the industry average of 5x.

However, Avgo's valuation is still relatively low compared to its peers, which are trading at a multiple of 15x. This suggests that Avgo's valuation has room for growth.

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The financial data used in our avgo valuation analysis is sourced from S&P Global Market Intelligence LLC, with data normalized to introduce a delay from the source being available.

We have access to 10 years of company financials, which is a comprehensive dataset to analyze the company's historical performance.

The data is updated quarterly, with all financial data based on a yearly period, known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data.

Here's a breakdown of the financial data we have access to:

Note that for non-US securities, equivalent regulatory forms and sources are used, unless specified otherwise.

AVGO's intrinsic value under the Base Case scenario is 236.94 USD, which is 30% lower than its current market price of 340.3 USD.

AVGO's key valuation metrics include a Price-To-Earnings Ratio of 91.4x, calculated by dividing its market cap by current earnings. This is significantly higher than the estimated Fair Price-To-Earnings Ratio of 52.8x.

AVGO's key valuation metrics also include a Price to Earnings ratio of 85.4x, calculated by dividing its market cap by current earnings. Its Enterprise Value/Revenue and Enterprise Value/EBITDA ratios are 27.9x and 51x respectively.

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The data used in our analysis is sourced from S&P Global Market Intelligence LLC, which provides a robust foundation for our valuation metrics. This data is then normalized, which can introduce a delay from the source being available.

The company financials data used in our analysis spans 10 years, giving us a comprehensive view of a company's financial performance over time.

For analyst consensus estimates, we have data available for the past 3 years, which helps us gauge the expectations of industry experts and analysts.

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Market prices data is available for an impressive 30 years, allowing us to analyze long-term trends and patterns.

The data used for ownership and management information also spans 10 years, providing valuable insights into a company's leadership and ownership structure.

The following table summarizes the data sources used in our analysis:

Fair Value is a crucial aspect of valuation metrics, and it's essential to understand how to calculate it. AVGO's intrinsic value under the Base Case scenario is $236.94 USD.

In some cases, a company's stock price may be higher than its estimated fair value. For instance, AVGO is trading above our estimate of fair value, which is $220.48 USD. This indicates that the company is overvalued by 30%.

The fair price of a company can also be estimated using a Discounted Cash Flow model. According to this model, AVGO's fair value is $364.09 USD, but it's trading at a higher price.

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Here are some key indicators that can help determine a company's fair value:

AVGO's P/E ratio is 272.61, which is higher than the P/E ratio of some of its benchmark companies.

In general, if a company's price multiple is lower than the price multiple of its benchmark, it's considered relatively undervalued. Conversely, if the company's price multiple is higher than the benchmark, it's considered relatively overvalued.

AVGO's key valuation metric is its Price-to-Earnings Ratio (PE Ratio), which is 91.4x. However, its Fair PE Ratio is estimated to be 52.8x, indicating that AVGO is expensive compared to its estimated fair value.

Here's a summary of AVGO's valuation metrics:

The analyst 12-month forecast is a crucial metric to consider when evaluating a stock's potential. According to the table, the average 1Y Price Target for AVGO is $367.80, representing a 1.02% increase from the current share price.

Analyst forecasts can be a valuable tool for investors, but it's essential to consider the dispersion of predictions. In the case of AVGO, the dispersion is 11.91%, indicating a relatively narrow range of predictions.

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The analyst consensus is clear: the target price is less than 20% higher than the current share price. In fact, the average 1Y Price Target is only 1.02% higher than the current share price.

Here's a summary of the analyst predictions:

As you can see, the analyst predictions are relatively close, with a narrow range of possible outcomes. This suggests that the market has a clear expectation for AVGO's future performance.

The analyst 12-month forecast for AVGO is a crucial aspect of understanding the stock's potential value. The average 1Y price target is $367.80, representing a 1.02% increase from the current share price of $364.09.

The analyst consensus is quite broad, with a dispersion of 11.91% among the 41 analysts who have made predictions. This means that their forecasts range from $218.00 to $420.00.

Interestingly, the analyst forecast target price is less than 20% higher than the current share price. This suggests that the analysts are cautiously optimistic about the stock's future performance.

Here's a breakdown of the analyst consensus:

As you can see, the analyst consensus is quite consistent, with a small variation in the average price target over the past few months. This suggests that the analysts are confident in their predictions, but also willing to adjust their targets based on changing market conditions.

AVGO's valuation can be evaluated through various ratios and scores. The company's Price-to-Earnings Ratio (PE Ratio) is a key metric, and according to the data, AVGO is expensive compared to the US Semiconductor industry average, with a PE Ratio of 91.4x versus 33.1x.

One notable score is the ValueRay F-Score, which measures a company's financial health. AVGO's F-Score is 80.71, indicating a relatively high level of financial health.

The ValueRay F-Score is calculated using various metrics, including Piotroski score, FCF Yield, FCF Margin, Debt/Equity ratio, and others. Here's a breakdown of the metrics used to calculate AVGO's F-Score:

Ratio is a crucial aspect of evaluating a company's performance. AVGO's Price-To-Earnings Ratio (PE Ratio) is 91.4x, which is expensive compared to the US Semiconductor industry average of 33.1x.

The PE Ratio is a key metric that helps investors determine if a company's stock is overvalued or undervalued. AVGO's high PE Ratio suggests that investors are willing to pay a premium for its stock.

Let's take a look at how AVGO's PE Ratio compares to other companies in the US Semiconductor industry. Here's a brief comparison:

AVGO's PE Ratio is significantly higher than SQNS Sequans Communications and MTLK Metalink, indicating that investors are more optimistic about AVGO's future growth prospects. However, CHJI China Changjiang Mining & New Energy Company's low PE Ratio suggests that investors are less confident in its future growth.

The Piotroski VR-10 score is a strict score that ranges from 0 to 10, with 7.0 being the score in this case.

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Net income is a crucial factor, and it's great to see that the company has a net income of 18.93 billion TTM, which is not only greater than 0 but also greater than 6% of revenue.

The company's free cash flow to total assets (FCFTA) ratio is 0.15, which is greater than 2.0%, meeting the criteria.

The net working capital to revenue ratio is 13.84%, which is within the acceptable range of ≤20% and has decreased by 12.29pp, meeting the criteria.

The company's cash flow to total assets (CFO/TA) ratio is 0.15, which is greater than 3.0%, meeting the criteria.

The net debt to EBITDA ratio is 1.68, which is less than or equal to 3.0, meeting the criteria.

The current ratio is 1.50, which is within the target range of 1.5-3.0.

The outstanding shares have decreased by 4.22% over the past 12 months, which is within the target range of ≤-2.0% for a "YES" score.

The gross margin is 66.83%, which has increased by 2.93pp and is greater than or equal to 18% and has increased by ≥0.5pp, meeting the criteria.

The asset turnover is 35.93%, which has increased by 8.06pp and is greater than or equal to 50% and has increased by ≥2pp, meeting the criteria.

The interest coverage ratio is 6.97, which is greater than or equal to 6, meeting the criteria.

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The ValueRay F-Score is a useful metric for evaluating a company's financial health. It's based on a strict scale of 0-100, and ValueRay has assigned a score of 80.71 to our example company.

Let's break down the components that make up this score. The Piotroski score, a measure of financial health, is 7.0pt, which translates to a 2.0 rating.

The FCF Yield, which measures a company's free cash flow relative to its market value, is 1.46%. This is equivalent to a 0.73 rating.

The FCF Margin, which shows a company's ability to generate cash from its sales, is 41.60%. This is a 7.50 rating.

Debt levels can also impact a company's financial health. The Debt/Equity ratio is 0.88, which is equivalent to a 2.13 rating.

Another key ratio is Debt/Ebitda, which measures a company's debt relative to its earnings before interest, taxes, depreciation, and amortization. In this case, it's 1.68, or a 0.61 rating.

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The ROIC - WACC ratio, which measures a company's return on invested capital relative to its weighted average cost of capital, is -0.93%. This is equivalent to a 3.66 rating.

The RoE, or return on equity, is 27.01%, which is a 2.25 rating.

Revenue growth is also an important indicator of a company's financial health. The Revenue Trend is 95.97%, which is equivalent to a 7.20 rating.

Finally, the EPS Trend, which measures a company's earnings per share growth, is 92.36%, or a 4.62 rating.

These individual components are then weighted and combined to produce the overall ValueRay F-Score.

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AVGO stock has a growth rating of 94.4%, indicating strong potential for expansion.

This is reflected in its performance over the past 12 months, where it has outpaced the S&P 500 by 65.3%.

AVGO's analyst rating is 4.60 out of 5, suggesting a high level of confidence among experts in the field.

The company's fundamental rating is 80.7%, showing a solid foundation for long-term growth.

AVGO's dividend rating is 71.2%, indicating a relatively stable income stream for investors.

Here's a summary of AVGO's key ratings:

AVGO's valuation is often compared to its peers and industry average. AVGO is expensive based on its Price-To-Earnings Ratio (91.4x, 85.4x) compared to the peer average (47.3x, 55.8x) and North American Semiconductor industry average (37.2x).

In comparison to its peers, AVGO's PE Ratio is higher than NVDA NVIDIA (49.9x), MU Micron Technology (28.4x), and QCOM QUALCOMM (15x), but lower than AMD Advanced Micro Devices (95.8x). The estimated growth for AVGO is 27.75% and 28.80%, respectively.

Here's a comparison of AVGO's PE Ratio with its peers:

The North American Semiconductor industry is a competitive space, and it's essential to understand how Avago Technologies (AVGO) fits in. AVGO's Price-To-Earnings Ratio is a significant 85.4x, which is much higher than the industry average of 37.2x.

This means AVGO is considered expensive compared to its peers. To put this into perspective, let's look at a comparison of AVGO's Price-To-Earnings Ratio with other companies in the industry.

Note: The table above is incomplete, but it gives you an idea of how AVGO's Price-To-Earnings Ratio compares to other companies in the industry.

When evaluating AVGO's performance, it's essential to consider its peers in the industry. AVGO's Price-To-Earnings Ratio (91.4x) is significantly higher than the peer average (47.3x). This suggests that AVGO is expensive compared to its peers.

The table below shows a comparison of AVGO's PE Ratio with its peers:

In another comparison, AVGO's PE Ratio (85.4x) is higher than the peer average (55.8x), indicating that AVGO is expensive compared to its peers in this group as well.

AVGO's high PE Ratio compared to its peers suggests that investors are expecting significant growth from the company. However, this also means that the stock may be overvalued, making it essential to carefully consider the company's fundamentals before making an investment decision.

Broadcom Inc., the parent company of AVGO, has a market cap of $1,649,664 million USD, which is a significant indicator of its size and value.

AVGO is part of the Semiconductors sub-industry, which is a key sector in the tech industry.

AVGO has been publicly traded since its IPO in 2009, giving investors a chance to buy and sell its shares over the years.

Here are some key valuation ratios for AVGO:

AVGO's stock ratings are also worth noting, with a growth rating of 94.4% and a fundamental rating of 80.7%, indicating strong growth and fundamental health.

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Dividends are a key aspect of common stock investing. They can provide a regular income stream and potentially increase the value of your investment over time.

The dividend yield of AVGO stock is 0.69%, which means that for every dollar invested, you can expect to earn around 7 cents in dividend payments per year. This is a relatively modest yield compared to other investment options.

AVGO has a strong track record of paying consistent dividends, with a payout consistency of 100.0% over the past 5 years. This suggests that the company is committed to returning value to its shareholders.

The company's dividend payout ratio is 37.5%, which means that it's using around 37.5% of its earnings to pay dividends. This is a relatively healthy ratio, indicating that the company has a solid financial foundation.

Here's a summary of AVGO's dividend statistics:

Common stock is a type of ownership in a company, represented by a share of its assets and profits.

Broadcom Inc., a semiconductor company, has a market capitalization of $1,649,664 million USD.

The price to earnings (P/E) ratio is a common valuation metric that can be used to compare the value of a company's stock to its earnings. Broadcom Inc.'s historical P/E ratio is not specified in the provided text.

AVGO Stock Overview lists Broadcom Inc.'s sub-industry as Semiconductors, which is a key industry in the technology sector.

The company's IPO or inception date is August 6, 2009.

The P/E ratio is just one of many valuation metrics, and it's essential to consider other factors such as growth potential and dividend yield when evaluating a company's stock.

For another approach, see: Retained Cash Flow / Net Debt

AVGO Stock Ratings provide a snapshot of the company's performance, with a growth rating of 94.4% and a fundamental rating of 80.7%.

Here are some key statistics from AVGO Stock Ratings:

AVGO Dividends provide a vital source of income for investors, with a dividend yield of 0.69% and an annual growth rate of 12.91%.

The company's payout consistency is 100.0%, indicating a reliable dividend payment history.

The payout ratio is 37.5%, which suggests that the company is generating sufficient earnings to support its dividend payments.

Broadcom Inc.'s financials demonstrate a strong commitment to shareholder value, making it an attractive option for investors seeking a stable dividend income.

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The analyst 12-month forecast for AVGO is a crucial aspect of its valuation. According to the data, the average 1Y price target is US$367.80, which represents a 1.02% increase from the current share price.

The consensus among analysts is that the target price will be between US$218.00 and US$420.00, with a dispersion of 11.91%. This means that there is a significant range of possible outcomes, but the majority of analysts are predicting a price increase.

A closer look at the analyst forecasts reveals that the target price is less than 20% higher than the current share price in most cases. In fact, the average increase is around 10-20%, with some analysts predicting even higher prices.

Here's a summary of the forecasts and targets:

Overall, the forecasts and targets suggest that AVGO is expected to see a moderate increase in price over the next 12 months, with some analysts predicting more significant gains.

Growth is a crucial aspect to consider when evaluating investment opportunities. The growth ratios for AVGO are impressive, with a 5-year growth correlation of 96.5% and a 5-year Compound Annual Growth Rate (CAGR) of 99.31%.

The company's growth has been consistently high over the past few years, with a 3-month growth correlation of 75.6% and a 12-month growth correlation of 83.7%. This suggests a strong upward trend in the company's performance.

Here's a breakdown of the growth ratios:

These growth ratios indicate that AVGO has been performing well in the market, with a high level of consistency over the past few years.

The analyst 12-month forecast for AVGO shows a target price that is less than 20% higher than the current share price.

According to the data, the average 1Y Price Target for AVGO is $367.80, which represents a 1.02% increase from the current share price of $364.09. This suggests that analysts are generally optimistic about the stock's future performance.

In fact, the target price has been increasing over the past few months, with the highest target price of $420.00 predicted by analysts in September '26.

Here's a breakdown of the analyst forecasts:

Keep in mind that these forecasts are based on the data available in the article, and actual results may vary.

The ValueRay Target Price is significantly higher than the other two forecasts, at $654.8, representing a 92.4% increase from the current share price.

Overall, the analyst forecasts suggest a positive outlook for AVGO, with a target price that is less than 20% higher than the current share price.

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