Broadcom Inc. (NASDAQ:AVGO)

The financial data reveals several notable trends with respect to the share price, operating profit per share, and the price-to-operating profit (P/OP) ratio over a period extending from 2009 to 2025.

Share Price

The share price demonstrates a consistent upward trajectory throughout the analyzed period. Beginning at a low value of $1.67 in 2009, it undergoes gradual growth initially, reaching $14.05 by 2015. Subsequent years show accelerated increases, peaking significantly at $329.88 by 2025. Minor fluctuations are observed in certain years, such as a slight dip from $26.15 in 2017 to $24.49 in 2018, and from $63.50 in 2021 to $55.59 in 2022, but these are overshadowed by substantial overall appreciation.

Operating Profit per Share

Operating profit per share presents more variability over the years. It starts at a modest $0.02 in 2009, then grows to $0.24 by 2011. A notable decline follows in 2016, with a negative value of -$0.10, indicating a loss in operating profit during that year. Recovery occurs afterward with fluctuations, peaking at $3.46 in 2023 before a slight decline to $2.87 in 2024 and a renewed rise to $5.37 by 2025. The general trend is a marked increase in profitability per share despite periodic setbacks.

Price-to-Operating Profit (P/OP) Ratio

The P/OP ratio exhibits significant volatility, reflecting changing market perceptions of the company's operating profit relative to its share price. Initial high valuation seen in 2009 at 81.9 decreases sharply by 2010-2011 to values around 12-13. The ratio increases notably in certain years, such as 59.05 in 2014 and 76.87 in 2024, indicative of the market assigning a relatively higher price for each unit of operating profit during periods with lower operating profitability or heightened market optimism. Some years have missing data, complicating full trend analysis for those specific periods. Overall, the ratio reveals varying investor sentiment and potential shifts in earnings expectations across the timeline.

In summary, the company’s share price has exhibited strong growth, magnifying the gains in operating profit per share, albeit with fluctuations. The P/OP ratio's variability points to changing investor valuations relative to operating earnings, with occasional spikes suggesting periods of elevated optimism or anticipated future growth that outpaces current operating profit figures.