Stock Analysis on Net

Broadcom Inc. (NASDAQ:AVGO)

$24.99

Price to Earnings (P/E)
since 2009

Microsoft Excel

Calculation

Broadcom Inc., P/E, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2025-11-02), 10-K (reporting date: 2024-11-03), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-11-01), 10-K (reporting date: 2019-11-03), 10-K (reporting date: 2018-11-04), 10-K (reporting date: 2017-10-29), 10-K (reporting date: 2016-10-30), 10-K (reporting date: 2015-11-01), 10-K (reporting date: 2014-11-02), 10-K (reporting date: 2013-11-03), 10-K (reporting date: 2012-10-28), 10-K (reporting date: 2011-10-30), 10-K (reporting date: 2010-10-31), 10-K (reporting date: 2009-11-01).

1 US$

2 Data adjusted for splits and stock dividends.

3 Closing price as at the filing date of Broadcom Inc. Annual Report.


The analysis of the financial data reveals several noteworthy trends in the company's market valuation and profitability over the observed periods.

Share Price
The share price demonstrates a general upward trajectory from 1.67 US$ at the beginning to 329.88 US$ in the latest period. There are periods of accelerated growth, particularly noticeable post-2018, where the price surged significantly from 24.49 US$ to over 300 US$ by the end. This suggests increasing market confidence and possibly a strengthening business position over time. However, some fluctuations are present, such as declines between 2017 and 2018, and again from 2021 to 2022, indicating episodes of volatility or market recalibration.
Earnings Per Share (EPS)
EPS values indicate variable profitability, with intermittent negative earnings early on (-0.02 US$ in 2009 and -0.44 US$ in 2016). Most years show positive earnings with significant spikes, such as 3.01 US$ in 2018 and 4.88 US$ projected in the most recent period. The data reflects periods of recovery and growth in profitability after downturns, but also some inconsistency. The spike in EPS around 2018 corresponds with a notable increase in share price, implying market recognition of improved earnings.
Price-to-Earnings (P/E) Ratio
The P/E ratio exhibits considerable fluctuation, ranging from a low of 8.14 to a high of 175.56. Elevated P/E ratios, especially the peaks near 2010 and beyond 2020, suggest periods where market prices have been high relative to earnings, potentially indicating high growth expectations or overvaluation. The ratio also shows gaps in data for some years, limiting continuous trend analysis. Generally, lower P/E values coincide with years of stronger earnings relative to share price, while higher P/E ratios coincide with years of modest earnings or market exuberance.

In summary, the data points to a company experiencing strong growth in share price over the long term, accompanied by fluctuating but generally improving earnings per share. The price multiples reflect varying investor sentiment and earnings performance, with some periods suggesting heightened expectations of future growth. The inconsistencies in earnings highlight the importance of considering both market valuation and underlying profitability when assessing the company's financial health.


Comparison to Competitors

Broadcom Inc., P/E, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2025-11-02), 10-K (reporting date: 2024-11-03), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-11-01), 10-K (reporting date: 2019-11-03), 10-K (reporting date: 2018-11-04), 10-K (reporting date: 2017-10-29), 10-K (reporting date: 2016-10-30), 10-K (reporting date: 2015-11-01), 10-K (reporting date: 2014-11-02), 10-K (reporting date: 2013-11-03), 10-K (reporting date: 2012-10-28), 10-K (reporting date: 2011-10-30), 10-K (reporting date: 2010-10-31), 10-K (reporting date: 2009-11-01).


Comparison to Sector (Semiconductors & Semiconductor Equipment)

Broadcom Inc., P/E, long-term trends, comparison to sector (semiconductors & semiconductor equipment)

Microsoft Excel

Based on: 10-K (reporting date: 2025-11-02), 10-K (reporting date: 2024-11-03), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-11-01), 10-K (reporting date: 2019-11-03), 10-K (reporting date: 2018-11-04), 10-K (reporting date: 2017-10-29), 10-K (reporting date: 2016-10-30), 10-K (reporting date: 2015-11-01), 10-K (reporting date: 2014-11-02), 10-K (reporting date: 2013-11-03), 10-K (reporting date: 2012-10-28), 10-K (reporting date: 2011-10-30), 10-K (reporting date: 2010-10-31), 10-K (reporting date: 2009-11-01).


Comparison to Industry (Information Technology)

Broadcom Inc., P/E, long-term trends, comparison to industry (information technology)

Microsoft Excel

Based on: 10-K (reporting date: 2025-11-02), 10-K (reporting date: 2024-11-03), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-11-01), 10-K (reporting date: 2019-11-03), 10-K (reporting date: 2018-11-04), 10-K (reporting date: 2017-10-29), 10-K (reporting date: 2016-10-30), 10-K (reporting date: 2015-11-01), 10-K (reporting date: 2014-11-02), 10-K (reporting date: 2013-11-03), 10-K (reporting date: 2012-10-28), 10-K (reporting date: 2011-10-30), 10-K (reporting date: 2010-10-31), 10-K (reporting date: 2009-11-01).