Broadcom (AVGO)
Information Technology · $1.55T market cap · SEC CIK 0001730168
ahead of 82% of the S&P 500 · #15 of 73 in Information Technology
Next reports on Dec 9, 2026, after the close, with analysts expecting $3.89 in earnings per share.
52-week range $289.77 to $495.00. 33% below its 52-week high and 15% above its low.
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
- The price trend is weak (23/100): −8.6% over a year, −24.4% over three months, 33% below its 52-week high.
- Trailed the S&P 500 by 21 points over the past year.
- Price/sales of 17.4× is higher than 92% of Information Technology companies.
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. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 53 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 90 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 89 |
| Momentumhow the price has behaved lately | 23 |
| Stabilityhow violently it moves, what it owes and what it pays you | 56 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
The financials
Revenue growth
Is the business growing? Yes
| Last 12 months | +48.7% |
|---|---|
| Over 5 years | +21.7% a year |
| FY2025 revenue | $63.9B (+24%) |
Free cash flow
Is it generating real cash? Yes, plenty
| FY2025 free cash flow | $26.9B |
|---|---|
| Of revenue | 42% |
| Of profit | 116% |
Profit margins
Is profitability improving? Yes, improving
| Gross margin | 69% |
|---|---|
| Operating margin | 48% |
| Net margin, FY24 → FY25 → now | 11.4% → 36.2% → 42.9% |
Debt vs. cash
Is the balance sheet healthy? Yes, the debt is manageable
| Cash | $16.2B |
|---|---|
| Long-term debt | $62.0B |
| Net debt | $45.8B |
| Years to repay | 2.3 yrs |
Valuation
Is the stock price reasonable? Yes, about fair
| P/E | 40.6× |
|---|---|
| Fair P/E for its growth | 46× |
| P/FCF | 57.7× |
| Forward P/E | 17.0× |
| EV / EBITDA | 35.4× |
At 40.6× earnings it trades close to the 46× that 25%+ a year of growth would justify. At 57.7× free cash flow it trades above that same mark.
The financials, five years deep
Pulled from Broadcom's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $63.9B | $51.6B | $35.8B | $33.2B | $27.4B |
| Change on the year | +24% | +44% | +8% | +21% | — |
| Free cash flow | |||||
| Free cash flow | $26.9B | $19.4B | $17.6B | $16.3B | $13.3B |
| Of revenue | 42% | 38% | 49% | 49% | 49% |
| Profit margins | |||||
| 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 | 36.2% | 11.4% | 39.3% | 34.6% | 24.5% |
| Debt vs. cash | |||||
| Cash | $16.2B | $9.3B | $14.2B | $12.4B | $12.2B |
| Long-term debt | $62.0B | $66.3B | $37.6B | $39.1B | $39.4B |
| Net cash (debt) | −$45.8B | −$56.9B | −$23.4B | −$26.7B | −$27.3B |
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…