Broadcom Inc. (AVGO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-45.5%

$179.81

vs $330.11 price

Levered DCF

$176.27

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

12.32

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	73.84×	132.72×	24.82×	17.16×	33.64×	53.23×	44.85×	7.51×
P/B	21.01×	11.52×	14.55×	8.47×	8.66×	5.91×	4.86×	3.45×
P/S	26.74×	15.11×	9.75×	5.79×	7.89×	5.91×	5.37×	4.41×
EV / EBITDA	50.62×	35.08×	18.23×	11.48×	16.65×	15.76×	15.73×	11.37×
Gross margin	67.8%	63.0%	68.9%	66.5%	61.4%	56.6%	55.2%	51.5%
Operating margin	39.9%	26.1%	45.2%	42.8%	31.0%	16.8%	15.2%	24.6%
Net margin	36.2%	11.4%	39.3%	34.6%	24.5%	12.4%	12.1%	58.8%
Current ratio	1.71×	1.17×	2.82×	2.62×	2.64×	1.87×	1.44×	3.9×
Debt / equity	0.8×	1×	1.65×	1.76×	1.61×	1.74×	1.31×	0.66×
Interest coverage	7.94×	3.41×	9.99×	8.19×	4.52×	2.26×	2.39×	8.18×
Dividend yield	0.7%	1.3%	2.2%	3.7%	2.9%	3.9%	3.5%	3.3%
Payout ratio	48.2%	166.5%	54.3%	61.2%	92.2%	187.0%	155.5%	24.5%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	28.4%	8.7%	58.7%	50.6%	27.0%	12.4%	10.9%	46.0%
Return on invested capital	16.4%	5.6%	22.5%	19.7%	12.2%	5.7%	5.4%	10.7%
Return on assets	13.5%	3.6%	19.3%	15.7%	8.9%	3.9%	4.0%	24.5%
Free cash flow yield	1.6%	2.5%	5.1%	8.5%	6.2%	8.2%	7.6%	9.0%
Earnings yield	1.4%	0.8%	4.0%	6.0%	3.1%	2.1%	2.2%	13.3%
Enterprise value	$1.8T	$837.6B	$374.6B	$219.8B	$244.6B	$175.3B	$149.1B	$105.2B
Net debt / EBITDA	1.41×	2.44×	1.24×	1.44×	1.91×	3.06×	2.93×	1.43×
Cash conversion cycle (days)	82	47	55	63	35	41	53	70