Debt is smaller than equity and it can meet short-term obligations.
Metrics · D/E ~74% · Current Ratio 2.24
💲Is the price expensive now?
On the expensive side
Even accounting for growth expectations, the price is set high.
Metrics · P/E 68.5 · P/B 24.0
💡Very strong earnings (44% op, 39% net margin, 37% ROE); debt manageable (~0.74x, VMware). Trailing P/E 68x is high, but fast growth cuts forward P/E to ~21x.
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), as of 2026-06-18
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 26Q2 revenue rose +47.9% year over year with operating income up +85.1% (source: SEC EDGAR · company IR · stockanalysis).
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 (44.1% operating margin, 37.3% ROE) on a fiscal-year basis.
Mega-Cap Value Metric Comparison
Among its peers (NVDA, AMD), Broadcom's trailing P/E of 68.5 is above NVDA (32) and below AMD (176). Its 44.1% operating margin is below NVDA (64%) but far above AMD (12%), and with 37.3% ROE and +32.3% revenue growth it profiles as a steady grower. Broadcom also pays a dividend (about 0.6%), a further differentiator (P/E, ROE, margin, and growth all TTM · sources: TradingView · company IR).
Metric
★ AVGO
NVDA
AMD
P/E (TTM)
68.5
32.3
176.4
ROE
37.3%
114.3%
8.1%
Operating Margin
44.1%
64.0%
11.7%
Revenue YoY Growth
+32.3%
+70.7%
+35.0%
P/E, ROE, and operating margin = TTM; revenue growth = TTM YoY · sources: TradingView · company IR, as of 2026-06-18.
Key Risk Factors (from 10-K)
●
AI CapEx-cycle dependence and customer concentration— AI chip revenue is concentrated in Big Tech data-center CapEx; heavy reliance on top customers (Apple, Google, and others) means 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)— The VMware acquisition left about $64.9B in total debt, with repayment and interest burdens that 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 $411.35 +4.7% · as of 2026-06-18
Q. What are Broadcom's (AVGO) key value-investing metrics?P/E (TTM) 68.5 (forward ~21x), ROE 37.3%, operating margin 44.1%, net margin 38.8%, 9-year revenue CAGR +19.1%, and 9-year operating-income CAGR +33.7% (sources: company IR · SEC · TradingView, as of 2026-06-18).
Q. What is the analyst price-target consensus for Broadcom?The average target across about 40 analysts is $525.30. This is an external consensus, not our own estimate, implying about +27.7% upside from the current $411.35. Source: TradingView, 2026-06.
Q. Isn't a 68x P/E too expensive?A trailing P/E of 68x is high in absolute terms, but rapid earnings growth (TTM net income up +127% year over year) brings the forward P/E down to about 21x. 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.