Stock Analysis on Net

Broadcom Inc. (NASDAQ:AVGO)

Common Stock Valuation Ratios (Price Multiples)

Microsoft Excel

Current Valuation Ratios

Broadcom Inc., current price multiples

Microsoft Excel
Broadcom Inc. Advanced Micro Devices Inc. Analog Devices Inc. Applied Materials Inc. First Solar Inc. Intel Corp. KLA Corp. Lam Research Corp. Micron Technology Inc. NVIDIA Corp. ON Semiconductor Corp. Qualcomm Inc. Texas Instruments Inc. Semiconductors & Semiconductor Equipment Information Technology
Selected Financial Data
Current share price (P) $641.54
No. shares of common stock outstanding 416,923,664
Growth rate (g) -1.22%
 
Earnings per share (EPS) $26.92
Next year expected EPS $26.59
Operating profit per share $34.12
Sales per share $79.64
Book value per share (BVPS) $54.47
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 23.83 119.65 36.30 15.91 16.86 16.64 15.53 7.60 157.07 18.69 11.00 19.27 25.24 30.39
Price to next year expected earnings 24.13 94.88 35.16 11.84 14.86 12.00 11.36 6.57 122.15 15.87 8.77 15.04 21.54 24.56
Price to operating profit (P/OP) 18.80 124.95 30.43 13.33 57.91 15.13 13.29 6.81 162.43 15.07 8.97 16.62 23.40 25.23
Price to sales (P/S) 8.06 6.69 8.30 4.03 8.85 2.14 6.00 4.15 2.15 25.44 4.27 3.22 8.42 6.35 7.07
Price to book value (P/BV) 11.78 2.88 2.74 8.51 3.97 1.33 39.45 11.39 1.32 31.04 5.75 7.90 11.56 5.65 10.88

Based on: 10-K (reporting date: 2022-10-30).

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Broadcom Inc., historical price multiples

Microsoft Excel
Oct 30, 2022 Oct 31, 2021 Nov 1, 2020 Nov 3, 2019 Nov 4, 2018 Oct 29, 2017
Price to earnings (P/E) 20.70 40.73 66.37 47.09 8.14 63.27
Price to operating profit (P/OP) 16.33 30.77 44.03 36.85 19.42 44.93
Price to sales (P/S) 7.00 9.55 7.40 5.62 4.78 6.07
Price to book value (P/BV) 10.23 10.50 7.40 5.09 3.74 5.28

Based on: 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).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Broadcom Inc. P/E ratio decreased from 2020 to 2021 and from 2021 to 2022.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Broadcom Inc. P/OP ratio decreased from 2020 to 2021 and from 2021 to 2022.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Broadcom Inc. P/S ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Broadcom Inc. P/BV ratio increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.

Price to Earnings (P/E)

Broadcom Inc., historical P/E calculation, comparison to benchmarks

Microsoft Excel
Oct 30, 2022 Oct 31, 2021 Nov 1, 2020 Nov 3, 2019 Nov 4, 2018 Oct 29, 2017
No. shares of common stock outstanding1 417,886,140 412,873,968 406,713,118 397,792,289 407,270,901 409,362,475
Selected Financial Data (US$)
Net income attributable to common stock (in millions) 11,223 6,437 2,663 2,695 12,259 1,692
Earnings per share (EPS)2 26.86 15.59 6.55 6.77 30.10 4.13
Share price1, 3 555.91 634.96 434.56 319.00 244.91 261.53
Valuation Ratio
P/E ratio4 20.70 40.73 66.37 47.09 8.14 63.27
Benchmarks
P/E Ratio, Competitors5
Advanced Micro Devices Inc. 96.16 45.54 41.66 169.62 68.76
Analog Devices Inc. 31.21 68.31 41.43 31.04 22.17 44.94
Applied Materials Inc. 13.55 22.05 22.31 20.25 9.75 16.16
First Solar Inc. 17.16 21.56 39.05
Intel Corp. 14.54 9.85 11.02 13.91 10.41
KLA Corp. 16.89 25.97 25.92 18.44 23.02 15.04
Lam Research Corp. 13.77 21.03 24.22 13.64 11.70 15.33
Micron Technology Inc. 6.62 13.38 21.80 7.98 3.40 9.20
NVIDIA Corp. 68.09 78.52 67.57 22.79 48.05
ON Semiconductor Corp. 18.26 25.13 73.60 40.58 14.75
Qualcomm Inc. 9.75 17.15 28.06 22.03 31.96
Texas Instruments Inc. 18.88 20.38 27.95 24.47 18.05
P/E Ratio, Sector
Semiconductors & Semiconductor Equipment 23.01 24.27 25.43 19.51 13.94
P/E Ratio, Industry
Information Technology 28.52 29.46 33.09 24.52 24.02

Based on: 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).

1 Data adjusted for splits and stock dividends.

2 2022 Calculation
EPS = Net income attributable to common stock ÷ No. shares of common stock outstanding
= 11,223,000,000 ÷ 417,886,140 = 26.86

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

4 2022 Calculation
P/E ratio = Share price ÷ EPS
= 555.91 ÷ 26.86 = 20.70

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Broadcom Inc. P/E ratio decreased from 2020 to 2021 and from 2021 to 2022.

Price to Operating Profit (P/OP)

Broadcom Inc., historical P/OP calculation, comparison to benchmarks

Microsoft Excel
Oct 30, 2022 Oct 31, 2021 Nov 1, 2020 Nov 3, 2019 Nov 4, 2018 Oct 29, 2017
No. shares of common stock outstanding1 417,886,140 412,873,968 406,713,118 397,792,289 407,270,901 409,362,475
Selected Financial Data (US$)
Operating income (in millions) 14,225 8,519 4,014 3,444 5,135 2,383
Operating profit per share2 34.04 20.63 9.87 8.66 12.61 5.82
Share price1, 3 555.91 634.96 434.56 319.00 244.91 261.53
Valuation Ratio
P/OP ratio4 16.33 30.77 44.03 36.85 19.42 44.93
Benchmarks
P/OP Ratio, Competitors5
Advanced Micro Devices Inc. 100.42 39.48 75.77 91.66 51.38
Analog Devices Inc. 26.16 56.12 33.76 24.74 17.62 30.97
Applied Materials Inc. 11.35 18.85 18.50 16.36 6.74 14.35
First Solar Inc. 13.70 27.05 140.50
Intel Corp. 49.91 10.06 9.72 13.29 9.40
KLA Corp. 15.36 21.69 20.99 15.60 12.01 10.92
Lam Research Corp. 11.79 18.34 20.40 12.12 8.66 13.68
Micron Technology Inc. 5.93 12.48 19.51 6.83 3.20 7.98
NVIDIA Corp. 66.13 75.05 66.39 24.81 45.61
ON Semiconductor Corp. 14.72 19.70 49.43 19.86 10.92
Qualcomm Inc. 7.95 15.84 23.32 12.60 103.26 30.15
Texas Instruments Inc. 16.29 17.67 26.53 21.46 15.00
P/OP Ratio, Sector
Semiconductors & Semiconductor Equipment 21.34 21.98 22.57 16.78 12.57
P/OP Ratio, Industry
Information Technology 23.67 25.97 28.23 21.20 17.17

Based on: 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).

1 Data adjusted for splits and stock dividends.

2 2022 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 14,225,000,000 ÷ 417,886,140 = 34.04

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

4 2022 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 555.91 ÷ 34.04 = 16.33

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Broadcom Inc. P/OP ratio decreased from 2020 to 2021 and from 2021 to 2022.

Price to Sales (P/S)

Broadcom Inc., historical P/S calculation, comparison to benchmarks

Microsoft Excel
Oct 30, 2022 Oct 31, 2021 Nov 1, 2020 Nov 3, 2019 Nov 4, 2018 Oct 29, 2017
No. shares of common stock outstanding1 417,886,140 412,873,968 406,713,118 397,792,289 407,270,901 409,362,475
Selected Financial Data (US$)
Net revenue (in millions) 33,203 27,450 23,888 22,597 20,848 17,636
Sales per share2 79.45 66.49 58.73 56.81 51.19 43.08
Share price1, 3 555.91 634.96 434.56 319.00 244.91 261.53
Valuation Ratio
P/S ratio4 7.00 9.55 7.40 5.62 4.78 6.07
Benchmarks
P/S Ratio, Competitors5
Advanced Micro Devices Inc. 5.38 8.76 10.63 8.59 3.58
Analog Devices Inc. 7.14 12.98 9.03 7.06 5.35 6.40
Applied Materials Inc. 3.43 5.63 4.69 3.75 1.87 3.82
First Solar Inc. 6.88 2.75 3.17 1.74 2.51
Intel Corp. 1.85 2.48 2.96 4.07 3.09
KLA Corp. 6.09 7.80 5.43 4.74 4.57 4.00
Lam Research Corp. 3.68 5.62 5.43 3.10 2.51 3.25
Micron Technology Inc. 1.87 2.83 2.73 2.15 1.58 2.30
NVIDIA Corp. 24.67 20.40 17.31 8.06 15.07
ON Semiconductor Corp. 4.17 3.76 3.28 1.56 1.57
Qualcomm Inc. 2.85 4.62 6.20 3.98 3.37 3.54
Texas Instruments Inc. 8.25 8.63 10.81 8.54 6.38
P/S Ratio, Sector
Semiconductors & Semiconductor Equipment 5.79 6.15 5.71 4.60 3.76
P/S Ratio, Industry
Information Technology 6.63 7.69 7.33 5.66 4.71

Based on: 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).

1 Data adjusted for splits and stock dividends.

2 2022 Calculation
Sales per share = Net revenue ÷ No. shares of common stock outstanding
= 33,203,000,000 ÷ 417,886,140 = 79.45

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

4 2022 Calculation
P/S ratio = Share price ÷ Sales per share
= 555.91 ÷ 79.45 = 7.00

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Broadcom Inc. P/S ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Price to Book Value (P/BV)

Broadcom Inc., historical P/BV calculation, comparison to benchmarks

Microsoft Excel
Oct 30, 2022 Oct 31, 2021 Nov 1, 2020 Nov 3, 2019 Nov 4, 2018 Oct 29, 2017
No. shares of common stock outstanding1 417,886,140 412,873,968 406,713,118 397,792,289 407,270,901 409,362,475
Selected Financial Data (US$)
Total Broadcom Inc. stockholders’ equity (in millions) 22,709 24,962 23,874 24,941 26,657 20,285
Book value per share (BVPS)2 54.34 60.46 58.70 62.70 65.45 49.55
Share price1, 3 555.91 634.96 434.56 319.00 244.91 261.53
Valuation Ratio
P/BV ratio4 10.23 10.50 7.40 5.09 3.74 5.28
Benchmarks
P/BV Ratio, Competitors5
Advanced Micro Devices Inc. 2.32 19.21 17.77 20.46 18.30
Analog Devices Inc. 2.35 2.50 4.22 3.61 3.02 3.22
Applied Materials Inc. 7.25 10.60 7.63 6.67 4.73 5.94
First Solar Inc. 3.09 1.35 1.56 1.05 1.08
Intel Corp. 1.15 2.05 2.84 3.78 2.94
KLA Corp. 40.05 15.98 11.83 8.15 11.39 10.50
Lam Research Corp. 10.10 13.64 10.55 6.39 4.28 3.82
Micron Technology Inc. 1.15 1.79 1.50 1.40 1.49 2.51
NVIDIA Corp. 24.95 20.13 15.48 10.10 19.60
ON Semiconductor Corp. 5.61 5.53 4.87 2.60 2.92
Qualcomm Inc. 7.00 15.59 24.00 19.69 82.57 2.56
Texas Instruments Inc. 11.33 11.87 17.02 13.79 11.20
P/BV Ratio, Sector
Semiconductors & Semiconductor Equipment 5.15 6.13 6.02 5.02 4.51
P/BV Ratio, Industry
Information Technology 10.21 11.69 10.81 8.36 7.30

Based on: 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).

1 Data adjusted for splits and stock dividends.

2 2022 Calculation
BVPS = Total Broadcom Inc. stockholders’ equity ÷ No. shares of common stock outstanding
= 22,709,000,000 ÷ 417,886,140 = 54.34

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

4 2022 Calculation
P/BV ratio = Share price ÷ BVPS
= 555.91 ÷ 54.34 = 10.23

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Broadcom Inc. P/BV ratio increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.