Debt is smaller than equity and it can meet short-term obligations.
Metrics · D/E ~60% · Current Ratio 2.50
💲Is the price expensive now?
On the expensive side
Even accounting for growth expectations, the price is set high.
Metrics · P/E 46.9 · P/B 21.4
💡Very strong earnings (49% op, 43% net margin, 44% ROE); debt manageable (~0.60x, shrinking). Trailing P/E 47x is high; fast growth cuts forward P/E to ~32x.
Compiled from public financial data. Not a recommendation to buy or sell any security. · Source: Company filings · TradingView · S&P Global (margins, debt, liquidity, P/B are TTM; base quarter ended 2026-08-02), as of 2026-09-02
Business Summary · Key Value Metrics
Custom AI accelerators (ASICs), Ethernet switching, wireless/optical semiconductors, and infrastructure software (VMware). FY2025 (ended Nov 2025) revenue was $63.9B with $25.5B GAAP operating income (39.9% margin). AI chips and VMware software drive growth.
Broadcom co-designs and manufactures Big Tech's custom AI accelerators (ASICs), such as Google's TPU and Meta's MTIA, and leads data-center Ethernet switching chips (Tomahawk, Jericho) with about 70% share. It also owns high-speed SerDes and optical-networking IP plus VMware virtualization software, creating combined hardware-plus-software lock-in (source: company IR · industry estimates).
Custom AI accelerators
Co-designs and builds Big Tech's in-house AI chips, such as Google's TPU and Meta's MTIA; deep customer lock-in.
Ethernet switching
About 70% share in data-center switching chips (Tomahawk, Jericho); essential for AI clusters.
VMware software
Server virtualization and cloud-infrastructure software; the shift to subscriptions drives high-margin recurring revenue.
High-speed IP and optics
A portfolio of high-speed interconnect IP, including SerDes and optical; high barriers to entry.
10-Year Financial Trends
Revenue grew at a 9-year CAGR of +19.1% (FY2016 $13.2B → FY2025 $63.9B), accelerating with the FY2024 VMware acquisition (+44% to revenue) and surging AI chips. GAAP operating income recovered to $25.5B in FY2025 (39.9% margin) after FY2024's $13.5B (margin dipped temporarily to 26.1% on acquisition-related intangible amortization), and in FQ3 2026 (ended 2026-08-02) revenue rose +85.5% year over year to $29.6B while GAAP operating income rose +171% to $16.0B, with AI semiconductor revenue of $16.7B (+221%) (source: SEC EDGAR · company IR · stockanalysis).
10-Year Growth
Revenue$63.9B · CAGR +19.2%
Operating Income$25.5B
EPS$4.77
10-Year Valuation
P/E (year-end)71.8x · avg 59.6x
ROE31.1% · avg 31.6%
Operating Margin39.9% · avg 25.3%
📊 Annual Data Table (AVGO) — expand/collapse
Year
Revenue (B$)
Op. Income (B$)
EPS ($)
P/E (x)
ROE (%)
Op. Margin (%)
2016
13.2
-0.41
-0.49
—
—
-3.1
2017
17.6
2.49
0.43
64.1
—
14.1
2018
20.8
5.14
2.84
—
49.2
24.6
2019
22.6
3.44
0.64
48.7
10.6
15.2
2020
23.9
4.01
0.63
60.1
12.1
16.8
2021
27.4
8.52
1.5
37.9
27.6
31
2022
33.2
14.23
2.65
19.6
48.2
42.8
2023
35.8
16.21
3.3
25.4
60.3
45.2
2024
51.6
13.46
1.23
149.3
13.5
26.1
2025
63.9
25.48
4.77
71.8
31.1
39.9
— = no data for that year/metric (P/E omitted before EPS turned positive)
9-Year CAGR: Revenue +19.1% · Operating Income +33.7% · Net Income +37.6% · EPS +33%
Sources: SEC EDGAR (8-K/10-K, Wayback-archived) · stockanalysis · company IR. Fiscal-year (November) basis, GAAP. EPS reflects the July 2024 10-for-1 split (diluted). FY2018 GAAP net income, EPS, and ROE spiked on a one-time benefit from the U.S. Tax Cuts Act, while FY2024 operating income and EPS dipped temporarily on VMware acquisition-intangible amortization — the P/E and ROE charts are volatile because of these effects. Recent margin and ROE figures differ from the TTM metrics (48.6% operating margin, 44.2% ROE) on a fiscal-year basis.
Mega-Cap Value Metric Comparison
Among its peers (NVDA, AMD), Broadcom's trailing P/E of 46.9 is above NVDA (28) and below AMD (117). Its 48.6% operating margin is below NVDA (65%) but far above AMD (16%), and with 44.2% ROE and +48.7% revenue growth it is in a high-growth phase. Broadcom also pays a dividend (about 0.71%), a further differentiator (P/E, ROE, margin, and growth all TTM · sources: TradingView · company IR).
Metric
★ AVGO
NVDA
AMD
P/E (TTM)
46.9
28.4
117.3
ROE
44.2%
117.2%
10.2%
Operating Margin
48.6%
65.2%
15.7%
Revenue YoY Growth
+48.7%
+83.4%
+39.5%
P/E, ROE, and operating margin = TTM; revenue growth = TTM YoY · sources: TradingView · company IR, as of 2026-09-02.
Key Risk Factors (from 10-K)
●
AI CapEx-cycle dependence and customer concentration— AI chip revenue ($16.7B in FQ3 2026, 56% of total) is concentrated in the data-center CapEx of a few hyperscalers and AI labs. The FQ3 call showed even heavier reliance on top customers such as Anthropic (the largest custom-chip customer), OpenAI, and Google, so a slowdown or loss would hit revenue directly.Source: Company 10-K · earnings calls
●
Customers bringing AI chips in-house— Even for the custom ASICs Broadcom helps design, customers building their own design capability could pull volume away over the long run.Source: Industry · company 10-K
●
Debt load (VMware acquisition)— Total debt from the VMware acquisition stood at about $59.4B at the end of FQ3 2026 (against $24.0B cash). It is being paid down each quarter, but interest costs depend on the rate and cash-flow environment.Source: Company 10-K
●
Export controls and geopolitics— Regulatory risks such as restrictions on advanced-chip exports to China affect revenue and the supply chain.Source: Company 10-K Risk Factors
✦ ValueCrab Dashboard PreviewAVGO $367.24 -0.66% · as of 2026-09-02
My Portfolio example
Growth
Earnings
Dividend
Cash
Revenue 10Y trend$63.9B · CAGR +19.1%
$63.9B$0.0B
20162025
P/E (TTM)46.9x
ROE44.2%
Operating Margin48.6%
Revenue Growth+48.7%
FCF$39.4B
Market Cap$1.75T
Revenue CAGR 9Y+19.1%
EPS CAGR 9Y+33%
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Value Investing FAQ (AVGO)
Q. What are Broadcom's (AVGO) key value-investing metrics?P/E (TTM) 46.9 (forward ~31.7x), ROE 44.2%, operating margin 48.6%, net margin 42.9%, 9-year revenue CAGR +19.1%, and 9-year operating-income CAGR +33.7% (sources: company IR · SEC · TradingView, as of 2026-09-02).
Q. What is the analyst price-target consensus for Broadcom?The average target across 56 analysts is $535.25 (rating: Strong Buy). This is an external consensus, not our own estimate, implying about +45.75% upside from the current $367.24. Source: TradingView, 2026-09.
Q. Isn't a 47x P/E too expensive?A trailing P/E of 47x is high in absolute terms, but rapid earnings growth (TTM net income up +102% year over year) brings the forward P/E down to about 32x. That figure assumes the FQ4 revenue guidance of $34.8B (+93%) and the roughly $115B FY2027 AI-chip revenue outlook are delivered as stated. Views on valuation versus growth diverge, and we do not offer a definitive buy or sell opinion.
Q. Why did profit fall in FY2024?FY2024 GAAP operating income fell year over year to $13.5B, reflecting a temporary hit from VMware acquisition-intangible amortization and deal costs. It recovered to $25.5B in FY2025 (source: SEC EDGAR).
Q. Who are Broadcom's main competitors?In AI accelerators and GPUs, NVIDIA (NVDA); in custom chips and CPUs/GPUs, AMD; in wireless and networking, Marvell and Qualcomm.