Broadcom Inc. (NASDAQ:AVGO)

Price to earnings (P/E) ratio

The P/E ratio started from a level of 47.09 in February 2020 and increased to a peak of 66.38 by January 2021, showing an upward trend reflecting increasing investor expectations or higher stock prices relative to earnings. Following this peak, there was a notable decline to 20.7 by July 2022, indicating a reduction in valuation relative to earnings. From this trough, the ratio gradually increased again, reaching very high levels above 90 from November 2024 to August 2025, with a maximum of 175.56 in February 2025. This sharp increase towards the end of the period suggests heightened market optimism or possibly lower earnings during that time frame.

Price to operating profit (P/OP) ratio

Initially recorded at 36.85 in February 2020, the P/OP ratio rose to 44.04 in February 2021, followed by a steady decline reaching a low of 16.17 in July 2022. This decline indicates a decrease in valuation relative to operating profit, potentially reflecting improved profitability or reduced price levels. After this low point, the ratio exhibited an upward trend, surpassing previous highs to reach 77.21 by August 2025. Periodic volatility is observed, with spikes particularly in late 2024 and through 2025, suggesting fluctuations in investor sentiment or operating profit performance.

Price to sales (P/S) ratio

The P/S ratio displayed a consistent upward trajectory from 5.62 in February 2020 to a peak of 18.34 by August 2024, indicating growing market valuation relative to sales. Following August 2024, the ratio fluctuated but maintained an overall elevated range, closing at 29.12 in August 2025. This indicates strong investor confidence in the company's sales performance or growth prospects despite periodic volatility.

Price to book value (P/BV) ratio

Starting at 4.95 in early 2019, the P/BV ratio experienced an initial increase to 5.36 by August 2019, then fluctuated between approximately 3.84 and 6.18 until late 2020. From early 2021 onward, the ratio generally trended upward, peaking at 21.59 by October 2023, signaling increasing valuation relative to net assets. A marked drop to 8.32 in February 2024 occurred, followed by subsequent recovery to a high of 23.82 in August 2025. These movements suggest variable market perceptions of asset value and growth potential, with heightened optimism in the latter periods.

The analysis of the quarterly financial data reveals a dynamic pattern across share price, earnings per share (EPS), and price-to-earnings (P/E) ratio over the observed periods.

Share Price

The share price demonstrates significant growth over the period. Initially fluctuating between approximately $23 and $45 in early phases, it shows a marked upward trajectory from mid-2021 onwards, reaching a peak of around $370 by August 2025. Despite some intermittent declines, such as the drop from $167.9 to $158.27 between May and August 2024, the overall trend indicates strong appreciation in market value over time.

Earnings per Share (EPS)

The EPS starts to be reported from February 2020, beginning at $0.68 and then showing a generally steady increase up to a maximum of approximately $4.01 by August 2025. This indicates a positive growth in profitability on a per-share basis. However, some variability is noticed in late 2023 and early 2024 periods, where EPS declines temporarily from $3.36 to $1.09 before recovering sharply.

Price-to-Earnings (P/E) Ratio

The P/E ratio indicates considerable volatility, especially in recent periods. Early reported values range from around 20 to 66, suggesting varying investor expectations relative to earnings. Notably, the ratio spikes to extremely high levels, peaking at over 175 between August and November 2024, which may reflect market uncertainty or overvaluation relative to earnings during that time. Subsequent values remain elevated above 90, despite the EPS recovery, pointing to persistent high valuation multiples.

Summary of Trends

The data suggests that while the company’s profitability has generally improved, reflected in the rising EPS, the market’s valuation relative to earnings has been increasingly volatile. The sharp increase in share price, especially in the latter periods, is accompanied by growing P/E ratios, indicating that investor sentiment may be driving prices beyond fundamental earnings growth at times. The temporary decline and recovery in EPS around 2023-2024 also hint at potential operational or external challenges during that timeframe which affected earnings performance.

Overall, the company exhibits strong growth potential with rising earnings and share price, but the elevated P/E ratios warrant attention as they highlight increased valuation risks and the importance of monitoring underlying earnings trends.

The share price demonstrates a generally upward trend over the observed periods, starting at $29.03 in early 2019 and reaching a peak of $369.57 by August 2025. Despite some fluctuations, including short-term declines such as the drop from $31.9 in November 2019 to $23.42 in February 2020, the overall trajectory is strongly positive. Notably, significant acceleration in share price appreciation occurs from 2023 onwards, with increases from $63.23 in January 2023 to $369.57 in August 2025.

The operating profit per share (OPPS) data is available from February 2020 onwards and reveals an initial rise from $0.87 to a peak of $3.87 in October 2023. After this peak, a downward trend is visible until November 2024, where the value decreases to approximately $2.80. However, a recovery phase follows, ending at $4.79 in August 2025, which is the highest recorded OPPS in the data set.

The price-to-operating profit (P/OP) ratio shows considerable volatility and reflects the relationship between the share price and operating profit per share. Initially, from February 2020 to October 2023, the ratio fluctuates widely but trends upward overall, peaking over 76 in February 2025 before declining. This suggests that the share price grew at a faster rate than operating profit during this period, leading to increasingly high valuation multiples.

Share Price:

Strong and consistent growth with minor dips, particularly accelerating after 2023.

Operating Profit per Share:

Initial growth with a peak in late 2023, followed by a moderate decline and strong recovery leading to a new peak in mid-2025.

Price-to-Operating Profit Ratio:

Significant volatility with a general upward trend until early 2025, followed by a correction; indicates expanding share price valuation relative to profit up to early 2025.

Overall, the company shows robust market valuation growth supported by increasing operating profitability per share, especially notable in the periods after 2023. The fluctuations in the P/OP ratio highlight episodes where market expectations may have outpaced operating profit growth, potentially reflecting investor sentiment or external market conditions influencing share price beyond fundamental earnings changes.

The share price exhibits considerable volatility over the analyzed periods, beginning with values in the high 20s (US$29.03) and experiencing fluctuations before entering a sustained upward trend from late 2020 onward. Notably, after reaching US$63.50 in October 2021, there is a moderate decline through mid-2022 followed by renewed growth that accelerates into early 2024, culminating in a peak of US$369.57 in August 2025. This indicates a strong bullish market sentiment and substantial appreciation in shareholder value over time despite interim corrections.

Sales per share data, available from February 2020, demonstrates a generally steady increase. Beginning around US$5.68, sales per share display gradual growth throughout the periods, reaching US$12.69 by August 2025. This pattern signifies consistent growth in revenue generation on a per-share basis, reflecting positive business performance and effective sales expansion.

The price-to-sales (P/S) ratio mirrors the dynamic interaction between share price and sales per share. Early observed values show ratios fluctuating between approximately 4.13 and 7.66 from early 2020 through 2021, indicating relatively balanced valuation levels. From 2022 onwards, there is marked volatility with the P/S ratio rising sharply, peaking at 29.12 in August 2025. This surge is driven primarily by rapid increases in share price relative to sales growth.

Overall, the data portray a company experiencing steady growth in sales alongside an intensifying market valuation. The final periods reveal heightened investor optimism or market speculation, as evidenced by the sharp increase in the P/S ratio, suggesting that share prices are escalating faster than sales. This divergence may warrant further investigation into the sustainability of valuation multiples and underlying business fundamentals.

Share Price

The share price of the company exhibited significant fluctuations over the examined periods, starting at $29.03 in early 2019 and experiencing a decline to $23.42 by February 2020. Subsequently, the price showed a notable upward trend, rising consistently through 2020 and 2021, reaching peaks such as $63.50 in October 2021 and $79.26 in April 2023. The share price continued to advance sharply in late 2023 and into 2024, attaining a high of $369.57 by August 2025. Occasional short-term dips were observed, such as the slight decline from $167.90 in May 2024 to $158.27 in August 2024, but the overall trajectory was strongly positive.

Book Value per Share (BVPS)

The book value per share remained relatively stable during the initial periods, fluctuating between $5.15 and $6.27 from early 2019 through early 2023, with minor declines and recoveries noted within this range. Beginning in early 2024, the BVPS increased markedly, moving from $5.12 in October 2023 to a higher plateau above $14 starting in February 2024. This significant rise in BVPS suggests growth in shareholders' equity or adjustments in accounting valuations during the most recent periods.

Price-to-Book Value (P/BV) Ratio

The P/BV ratio reflected considerable variation, initially oscillating between approximately 3.84 and 7.68 until early 2021, indicating moderate valuation relative to book value. From 2021 onwards, the ratio expanded markedly, reaching double-digit levels that peaked at 23.82 in August 2025. The elevated P/BV ratios in the latter periods reflect a market valuation significantly exceeding the book value per share, possibly indicating investor optimism or expectations of future growth. Some volatility in the ratio coincided with fluctuations in share prices and BVPS, such as the temporary drop from 21.59 in October 2023 to 8.32 in February 2024 before climbing again.

Overall Insights

The data shows a clear trend of rising market valuation over time, with a steep increase in share prices beginning mid-2020 and accelerating further in 2023 and 2024. The stable to modestly declining book value per share through early 2023 followed by a substantial increase in 2024 suggests possible changes in the company's equity base or accounting measures. The P/BV ratio's sharp rise in later years signals investor confidence and market expectations extending beyond the company’s book value metrics. This combination of trends may reflect favorable operational results, strategic developments, or external market factors contributing to enhanced investor sentiment.