Stock Analysis on Net
Stock Analysis on Net
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Broadcom Inc. (NASDAQ:AVGO)

Common Stock Valuation Ratios (Price Multiples)

Beginner level

Current Valuation Ratios

Broadcom Inc., current price multiples

Microsoft Excel LibreOffice Calc
Broadcom Inc. Advanced Micro Devices Inc. Analog Devices Inc. Apple Inc. Applied Materials Inc. Cisco Systems Inc. Intel Corp. Lam Research Corp. Micron Technology Inc. NVIDIA Corp. Qualcomm Inc. Texas Instruments Inc. Technology Hardware & Equipment Technology
Selected Financial Data
Current share price (P) $355.01
No. shares of common stock outstanding 404,501,331
Growth rate (g) 1.03%
 
Earnings per share (EPS) $6.66
Next year expected EPS $6.73
Operating profit per share $8.51
Sales per share $55.86
Book value per share (BVPS) $61.66
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 53.28 275.18 32.09 35.69 20.08 13.47 8.59 22.59 20.91 114.96 32.53 26.75 28.57 32.65
Price to next year expected earnings 52.74 353.03 30.64 26.75 16.90 12.16 7.62 18.50 17.48 94.28 29.74 22.14 23.95 27.99
Price-earnings-growth (PEG) 51.57 6.78 1.07 1.07 1.25 0.68 1.02 1.06 5.24 3.48 1.29 1.48 1.96
Price to operating profit (P/OP) 41.70 148.71 25.57 30.85 16.22 11.09 8.20 19.03 18.71 112.94 18.61 23.45 24.53 28.81
Price to sales (P/S) 6.35 13.94 7.30 7.58 3.72 3.06 2.51 5.06 2.62 29.44 5.88 9.33 6.46 7.48
Price to book value (P/BV) 5.76 33.19 3.74 21.80 6.62 3.98 2.33 9.84 1.44 26.34 29.06 15.07 10.69 9.72

Based on: 10-K (filing date: 2019-12-20).

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 LibreOffice Calc
Nov 3, 2019 Nov 4, 2018 Oct 29, 2017 Oct 30, 2016 Nov 1, 2015 Nov 2, 2014
Price to earnings (P/E) 47.09 8.14 63.27 28.48 98.34
Price to operating profit (P/OP) 36.85 19.42 44.93 23.80 59.05
Price to sales (P/S) 5.62 4.78 6.07 5.48 5.69 6.06
Price to book value (P/BV) 5.09 3.74 5.28 3.84 8.24 7.97

Based on: 10-K (filing date: 2019-12-20), 10-K (filing date: 2018-12-21), 10-K (filing date: 2017-12-21), 10-K (filing date: 2016-12-23), 10-K (filing date: 2015-12-17), 10-K (filing date: 2014-12-29).

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.’s P/E ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.
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.’s P/OP ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.
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.’s P/S ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. Broadcom Inc.’s P/BV ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.

Price to Earnings (P/E)

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

Microsoft Excel LibreOffice Calc
Nov 3, 2019 Nov 4, 2018 Oct 29, 2017 Oct 30, 2016 Nov 1, 2015 Nov 2, 2014
No. shares of common stock outstanding1 397,792,289 407,270,901 409,362,475 398,980,392 276,489,575 255,331,527
Selected Financial Data (US$)
Net income (loss) attributable to common stock (in millions) 2,695  12,259  1,692  (1,739) 1,364  263 
Earnings per share (EPS)2 6.77 30.10 4.13 -4.36 4.93 1.03
Share price1, 3 319.00 244.91 261.53 181.94 140.48 101.29
Valuation Ratio
P/E ratio4 47.09 8.14 63.27 28.48 98.34
Benchmarks
P/E Ratio, Competitors5
Advanced Micro Devices Inc. 169.62 68.76 282.39
Analog Devices Inc. 31.04 22.17 44.94 26.07 27.06
Apple Inc. 20.00 16.07 18.32 13.49 12.46 15.60
Applied Materials Inc. 20.25 9.75 16.16 20.68 15.88 27.87
Cisco Systems Inc. 17.69 1,964.84 16.37 14.69 14.82
Intel Corp. 13.91 10.41 22.15 16.72 11.85
Lam Research Corp. 13.64 11.70 15.33 15.82 17.38
Micron Technology Inc. 7.98 3.40 9.20 6.25
NVIDIA Corp. 22.80 48.05 36.34 28.97 19.77
Qualcomm Inc. 22.03 31.96 17.37 17.18 16.11
Texas Instruments Inc. 24.47 18.05 27.77 21.45 17.66
P/E Ratio, Sector
Technology Hardware & Equipment 19.47 16.73 20.19 16.96 13.48
P/E Ratio, Industry
Technology 24.18 23.18 27.34 21.75 19.33

Based on: 10-K (filing date: 2019-12-20), 10-K (filing date: 2018-12-21), 10-K (filing date: 2017-12-21), 10-K (filing date: 2016-12-23), 10-K (filing date: 2015-12-17), 10-K (filing date: 2014-12-29).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
EPS = Net income (loss) attributable to common stock ÷ No. shares of common stock outstanding
= 2,695,000,000 ÷ 397,792,289 = 6.77

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

4 2019 Calculation
P/E ratio = Share price ÷ EPS
= 319.00 ÷ 6.77 = 47.09

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.’s P/E ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.

Price to Operating Profit (P/OP)

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

Microsoft Excel LibreOffice Calc
Nov 3, 2019 Nov 4, 2018 Oct 29, 2017 Oct 30, 2016 Nov 1, 2015 Nov 2, 2014
No. shares of common stock outstanding1 397,792,289 407,270,901 409,362,475 398,980,392 276,489,575 255,331,527
Selected Financial Data (US$)
Operating income (loss) (in millions) 3,444  5,135  2,383  (409) 1,632  438 
Operating profit per share2 8.66 12.61 5.82 -1.03 5.90 1.72
Share price1, 3 319.00 244.91 261.53 181.94 140.48 101.29
Valuation Ratio
P/OP ratio4 36.85 19.42 44.93 23.80 59.05
Benchmarks
P/OP Ratio, Competitors5
Advanced Micro Devices Inc. 91.66 51.38 59.52
Analog Devices Inc. 24.74 17.62 30.97 21.85 22.69
Apple Inc. 17.29 13.49 14.44 10.27 9.34 11.74
Applied Materials Inc. 16.36 6.74 14.35 16.54 12.92 19.66
Cisco Systems Inc. 14.46 17.56 13.14 12.46 12.36
Intel Corp. 13.29 9.40 11.86 13.40 9.66
Lam Research Corp. 12.12 8.66 13.68 13.46 14.45
Micron Technology Inc. 6.83 3.20 7.98 106.63 6.04
NVIDIA Corp. 24.82 45.61 31.30 23.81 16.42
Qualcomm Inc. 12.60 103.26 30.15 15.26 15.68 17.00
Texas Instruments Inc. 21.46 15.00 16.81 16.07 12.34
P/OP Ratio, Sector
Technology Hardware & Equipment 16.72 13.41 15.17 13.01 10.50
P/OP Ratio, Industry
Technology 21.34 17.83 19.87 17.13 14.77

Based on: 10-K (filing date: 2019-12-20), 10-K (filing date: 2018-12-21), 10-K (filing date: 2017-12-21), 10-K (filing date: 2016-12-23), 10-K (filing date: 2015-12-17), 10-K (filing date: 2014-12-29).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
Operating profit per share = Operating income (loss) ÷ No. shares of common stock outstanding
= 3,444,000,000 ÷ 397,792,289 = 8.66

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

4 2019 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 319.00 ÷ 8.66 = 36.85

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.’s P/OP ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.

Price to Sales (P/S)

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

Microsoft Excel LibreOffice Calc
Nov 3, 2019 Nov 4, 2018 Oct 29, 2017 Oct 30, 2016 Nov 1, 2015 Nov 2, 2014
No. shares of common stock outstanding1 397,792,289 407,270,901 409,362,475 398,980,392 276,489,575 255,331,527
Selected Financial Data (US$)
Net revenue (in millions) 22,597  20,848  17,636  13,240  6,824  4,269 
Sales per share2 56.81 51.19 43.08 33.18 24.68 16.72
Share price1, 3 319.00 244.91 261.53 181.94 140.48 101.29
Valuation Ratio
P/S ratio4 5.62 4.78 6.07 5.48 5.69 6.06
Benchmarks
P/S Ratio, Competitors5
Advanced Micro Devices Inc. 8.59 3.58 2.28 3.08 0.38
Analog Devices Inc. 7.06 5.35 6.40 6.57 5.49
Apple Inc. 4.25 3.60 3.86 2.86 2.85 3.37
Applied Materials Inc. 3.75 1.87 3.82 3.29 2.26 3.29
Cisco Systems Inc. 3.96 4.38 3.28 3.20 2.71
Intel Corp. 4.07 3.09 3.39 2.90 2.44
Lam Research Corp. 3.10 2.51 3.25 2.46 2.17
Micron Technology Inc. 2.15 1.58 2.30 1.44 1.12
NVIDIA Corp. 8.06 15.07 8.76 3.55 2.66
Qualcomm Inc. 3.98 3.37 3.54 4.21 3.58 4.85
Texas Instruments Inc. 8.54 6.38 6.83 5.77 4.06
P/S Ratio, Sector
Technology Hardware & Equipment 4.41 3.76 3.91 3.16 2.81
P/S Ratio, Industry
Technology 5.54 4.82 5.06 4.20 3.72

Based on: 10-K (filing date: 2019-12-20), 10-K (filing date: 2018-12-21), 10-K (filing date: 2017-12-21), 10-K (filing date: 2016-12-23), 10-K (filing date: 2015-12-17), 10-K (filing date: 2014-12-29).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
Sales per share = Net revenue ÷ No. shares of common stock outstanding
= 22,597,000,000 ÷ 397,792,289 = 56.81

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

4 2019 Calculation
P/S ratio = Share price ÷ Sales per share
= 319.00 ÷ 56.81 = 5.62

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.’s P/S ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.

Price to Book Value (P/BV)

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

Microsoft Excel LibreOffice Calc
Nov 3, 2019 Nov 4, 2018 Oct 29, 2017 Oct 30, 2016 Nov 1, 2015 Nov 2, 2014
No. shares of common stock outstanding1 397,792,289 407,270,901 409,362,475 398,980,392 276,489,575 255,331,527
Selected Financial Data (US$)
Total Broadcom Inc. stockholders’ equity (in millions) 24,941  26,657  20,285  18,892  4,714  3,243 
Book value per share (BVPS)2 62.70 65.45 49.55 47.35 17.05 12.70
Share price1, 3 319.00 244.91 261.53 181.94 140.48 101.29
Valuation Ratio
P/BV ratio4 5.09 3.74 5.28 3.84 8.24 7.97
Benchmarks
P/BV Ratio, Competitors5
Advanced Micro Devices Inc. 20.46 18.30 19.87 31.66
Analog Devices Inc. 3.61 3.02 3.22 4.35 3.72
Apple Inc. 12.21 8.93 6.61 4.81 5.57 5.53
Applied Materials Inc. 6.67 4.73 5.94 4.93 2.87 3.80
Cisco Systems Inc. 6.12 5.00 2.38 2.48 2.23
Intel Corp. 3.78 2.94 3.08 2.60 2.21
Lam Research Corp. 6.39 4.28 3.82 2.45 2.23
Micron Technology Inc. 1.40 1.49 2.51 1.48 1.47
NVIDIA Corp. 10.10 19.60 10.51 3.98 2.82
Qualcomm Inc. 19.69 82.57 2.56 3.12 2.88 3.28
Texas Instruments Inc. 13.79 11.20 9.89 7.36 5.30
P/BV Ratio, Sector
Technology Hardware & Equipment 7.28 6.06 4.65 3.72 3.75
P/BV Ratio, Industry
Technology 7.20 6.25 5.50 4.51 4.34

Based on: 10-K (filing date: 2019-12-20), 10-K (filing date: 2018-12-21), 10-K (filing date: 2017-12-21), 10-K (filing date: 2016-12-23), 10-K (filing date: 2015-12-17), 10-K (filing date: 2014-12-29).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
BVPS = Total Broadcom Inc. stockholders’ equity ÷ No. shares of common stock outstanding
= 24,941,000,000 ÷ 397,792,289 = 62.70

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

4 2019 Calculation
P/BV ratio = Share price ÷ BVPS
= 319.00 ÷ 62.70 = 5.09

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’s required rate of return and its actual rate of return. Broadcom Inc.’s P/BV ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.