Broadcom (AVGO)
Information Technology · $1.74T market cap · SEC CIK 0001730168
fundamentals score out of 100
Next reports on Dec 9, 2026, after the close, with analysts expecting $3.90 in earnings per share.
The case for AVGO
- Revenue up 48.7% on the year.
- Earns 44% back on shareholder equity.
- Generated $26.9B of free cash flow in FY2025, 42% of revenue.
- 43% of revenue drops through to net profit.
- Earnings per share up 100.1%.
- Has compounded revenue at 21.7% a year over five years.
The case against
- Pricey at 45.4× earnings, against a long-run market average nearer 20×.
- Priced at 19.5× sales, which leaves no room for a stumble.
- The price trend is weak (39/100): +5.1% over a year, -11.8% over three months, 36% of the way up its 52-week range.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 27 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 91 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 92 |
| Momentumhow the price has behaved lately | 39 |
| Stabilityhow violently it moves, what it owes and what it pays you | 55 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
Key numbers
| Price / earnings | 45.4× |
|---|---|
| Price / book | 18.72× |
| Price / sales | 19.5× |
| Revenue growth (YoY) | +48.7% |
| EPS growth (YoY) | +100.1% |
| Gross margin | 69% |
| Operating margin | 48% |
| Net margin | 43% |
| Return on equity | 44% |
| Debt / equity | 0.60× |
| Current ratio | 2.50 |
| Dividend yield | 1.88% |
| Beta | 1.48 |
| 52-week range | $289.96 – $495.00 |
| Position in that range | 36% of the way up |
| 3-month return | -11.8% |
| 1-year return | +5.1% |
Five years of financials, as filed
Pulled from Broadcom's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $63.9B | $51.6B | $35.8B | $33.2B | $27.4B |
| Gross profit | $43.3B | $32.5B | $24.7B | $22.1B | $16.8B |
| Operating income | $25.5B | $13.5B | $16.2B | $14.2B | $8.5B |
| Net income | — | $5.9B | $14.1B | $11.5B | — |
| Operating cash flow | $27.5B | $20.0B | $18.1B | $16.7B | $13.8B |
| Capital expenditure | $623M | $548M | $452M | $424M | $443M |
| Total assets | $170B | $165B | $178B | $73.0B | $73.2B |
| Total liabilities | $90.0B | $95.6B | $108B | $49.7B | $50.2B |
| Cash | $14.2B | $9.3B | $11.9B | $12.6B | $10.2B |
| Long-term debt | $63.8B | — | — | — | $39.2B |
| Free cash flow | $26.9B | $19.4B | $17.6B | $16.3B | $13.3B |
| Gross margin | 67.8% | 63.0% | 68.9% | 66.5% | 61.4% |
| Operating margin | 39.9% | 26.1% | 45.2% | 42.8% | 31.0% |
| Net margin | — | 11.4% | 39.3% | 34.6% | — |
| Diluted shares | 4.9B | 4.8B | 4.3B | 4.2B | 4.3B |
Share count is up 13.1% over 4 years. Your slice has been diluted. Counts are restated for stock splits so the years compare.
What Broadcom says it does
Overview We are a global technology leader that designs, develops and supplies a broad range of semiconductor and semiconductor-based solutions and infrastructure software solutions. Our more than 60-year history of innovation dates back to our diverse origins from AT&T/Bell Labs, Lucent and Hewlett-Packard Company, and has evolved through acquisitions, including LSI Corporation, Broadcom Corporation, Brocade Communications Systems, Inc., CA, Inc., Symantec Enterprise Security, and VMware, Inc. ("VMware"). Over the years, we have assembled a large team of semiconductor and software design engineers around the world. We maintain design, product and software development engineering expertise and resources at locations primarily in the U.S., Asia, and Europe. We combine global scale, engineering depth, broad product portfolio, superior execution and operational focus to deliver category-leading semiconductor and infrastructure software…
Risk factors AVGO lists in its 10-K
- Cost of subscriptions and services
- Amortization of acquisition-related intangible assets
- Provision for (benefit from) income taxes
- Valuation of goodwill and long-lived assets
- Fiscal Year 2025 Compared to Fiscal Year 2024
- Selling, General and Administrative Expense
- Amortization of Acquisition-Related Intangible Assets in Operating Expenses
- Unrecognized Compensation Cost, Net of Expected Forfeitures
- (In millions, except per share data)
- Opinions on the Financial Statements and Internal Control over Financial Reporting
- Internal Control - Integrated Framework
- Definition and Limitations of Internal Control over Financial Reporting
- Revenue Recognition — Certain Software and Support Revenue in the Infrastructure Software Segment
- Cash flows from operating activities