US · Nasdaq · AVGO
Broadcom (AVGO) stock analysis: valuation and financials
Technology · Semiconductors
$356.35 -1.4% Price as of Oct 12, 2026
Elite AI-driven growth, low leverage (0.82x) and 44.2% FCF margin, but valuation already prices the bull case; base-case IRR 4.2% and a 5/100 capital-allocation score make risk/reward unattractive.
- Market cap
- $1.7T
- P/E
- —
- EV/Sales
- 19.5x
- FCF yield
- 2.3%
- Dividend yield
- 0.7%
- 52-week range
- $293.41 – $481.57
Research as of Oct 13, 2026
Business quality scorecard
- Growth93
- Profitability94
- Cash flow80
- Balance sheet76
- Capital allocation5
- Innovation69
- Valuation62
0–100, computed from reported financials; higher is better, and a higher valuation score means cheaper.
How it makes money
Hyperscalers, OEMs/distributors and large enterprises pay for AI and connectivity semiconductors plus infrastructure software; semiconductor solutions contributes 50.6% of segment operating profit and software 49.4%, with software at a 76.8% operating margin.
Financials by year
| FY2021Nov 2020–Oct 2021 | FY2022Nov 2021–Oct 2022 | FY2023Nov 2022–Oct 2023 | FY2024Nov 2023–Oct 2024 | FY2025Nov 2024–Oct 2025 | |
|---|---|---|---|---|---|
| Revenue | $27.4B | $33.2B | $35.8B | $51.6B | $63.9B |
| Revenue growth | +14.9% | +21.0% | +7.9% | +44.0% | +23.9% |
| Gross margin | 61.4% | 66.5% | 68.9% | 63.0% | 67.8% |
| Operating margin | 31.0% | 42.8% | 45.2% | 26.1% | 39.9% |
| Net income | — | $11.5B | $14.1B | $5.9B | — |
| Free cash flow | $13.3B | $16.3B | $17.6B | $19.4B | $26.9B |
| FCF margin | 48.5% | 49.1% | 49.2% | 37.6% | 42.1% |
Amounts in USD · What is free cash flow?
Margins FY2025 gross margin 67.8% vs 63.0% in FY2024 (+4.7pts) and operating margin 39.9% vs 26.1%. TTM gross margin 68.8%, operating margin 48.1%; Q3 FY2026 gross 69.1%, operating 53.9%. Gains came from AI semiconductor demand and higher-margin software licence revenue.
- Cash flow HealthyTTM operating cash flow of $40.7B exceeds net income; cash conversion is 1.90x, and free cash flow of $39.4B equals a 44.2% FCF margin.
- Debt LowNet debt is $35.4B, just 0.82x EBITDA of $43.5B; total debt of $59.4B sits against $24.0B of cash and equivalents.
Balance sheet Leverage · Low
- Cash & short-term investments
- $24.0B
- Total debt
- $59.4B
- Net debt
- $35.4B
- Net debt / EBITDA
- 0.8x
- Interest coverage
- 7.9x
- Current ratio
- 2.5x
As of Aug 2, 2026 · Amounts in USD · How to read a balance sheet
Management and track record
- Management AdequateExecution is strong: revenue +48.7% TTM to $89.1B, operating margin 48.1%, FY2025 FCF $26.9B at 44.2% margin, cash conversion 1.90x, leverage low at 0.82x net debt/EBITDA.
- Credibility HighTotal revenue guided and beaten five straight quarters: Q3 FY2025 $15.8B vs $15.95B actual, Q4 FY2025 $17.4B vs $18.0B, Q1 FY2026 $19.1B vs $19.31B, Q2 FY2026 $22.0B vs $22.19B, Q3 FY2026 $29.4B vs $29.59B.
Of 5 guided figures checked: 5 beat, 0 in range, 0 missed.
Valuation range
Implied value per share · Price when researched: $356.35
Each scenario assumes five years of revenue growth, an FCF margin and an exit multiple, discounted to today. The assumptions and sensitivities are in the full report.
The full report also covers
- Revenue, growth and outlook of each segment
- Moat and main competitors
- Key risks
- Capital allocation: where the free cash flow went
- What management promised, and what they delivered
- Scenario assumptions and sensitivities
- A source for every claim
- Ask AI about this company
The full report is for members.