Microsoft Excel LibreOffice Calc

Broadcom Inc. (AVGO)

Common Stock Valuation Ratios (Price Multiples)
Quarterly Data

Difficulty: Beginner

Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).

Historical Valuation Ratios (Summary)

Broadcom Inc., historical price multiples (quarterly data)

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Nov 4, 2018 Aug 5, 2018 May 6, 2018 Feb 4, 2018 Oct 29, 2017 Jul 30, 2017 Apr 30, 2017 Jan 29, 2017 Oct 30, 2016 Jul 31, 2016 May 1, 2016 Jan 31, 2016 Nov 1, 2015 Aug 2, 2015 May 3, 2015 Feb 1, 2015 Nov 2, 2014 Aug 3, 2014 May 4, 2014 Feb 2, 2014 Nov 3, 2013 Aug 4, 2013 May 5, 2013 Feb 3, 2013
Price to earnings (P/E) 8.14 8.34 10.57 14.31 63.27 190.51 – – – – – 40.57 28.48 33.13 55.71 66.64 98.34 74.06 29.85 27.91 23.29 – – –
Price to operating profit (P/OP) 19.42 22.97 32.67 39.00 44.93 50.07 94.49 – – – 226.20 33.05 23.80 24.98 38.73 45.69 59.05 72.37 29.70 27.62 23.29 – – –
Price to sales (P/S) 4.78 4.81 5.90 5.84 6.07 5.94 6.38 5.71 5.48 6.11 7.31 8.10 5.69 5.39 6.07 6.16 6.06 6.50 6.48 5.90 5.10 – – –
Price to book value (P/BV) 3.74 3.55 3.61 4.25 5.28 5.08 5.34 4.68 3.84 3.44 3.30 11.01 8.24 8.28 9.14 8.82 7.97 7.17 5.74 5.23 4.45 3.54 3.53 3.59

Based on: 10-K (filing date: 2018-12-21), 10-Q (filing date: 2018-09-13), 10-Q (filing date: 2018-06-14), 10-Q (filing date: 2018-03-15), 10-K (filing date: 2017-12-21), 10-Q (filing date: 2017-09-07), 10-Q (filing date: 2017-06-08), 10-Q (filing date: 2017-03-09), 10-K (filing date: 2016-12-23), 10-Q (filing date: 2016-09-08), 10-Q (filing date: 2016-06-09), 10-Q (filing date: 2016-03-10), 10-K (filing date: 2015-12-17), 10-Q (filing date: 2015-09-10), 10-Q (filing date: 2015-06-10), 10-Q (filing date: 2015-03-11), 10-K (filing date: 2014-12-29), 10-Q (filing date: 2014-09-12), 10-Q (filing date: 2014-06-10), 10-Q (filing date: 2014-03-13), 10-K (filing date: 2013-12-20), 10-Q (filing date: 2013-09-13), 10-Q (filing date: 2013-06-07), 10-Q (filing date: 2013-03-14).

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 declined from Q2 2018 to Q3 2018 and from Q3 2018 to Q4 2018.
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 declined from Q2 2018 to Q3 2018 and from Q3 2018 to Q4 2018.
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 declined from Q2 2018 to Q3 2018 and from Q3 2018 to Q4 2018.
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 declined from Q2 2018 to Q3 2018 but then increased from Q3 2018 to Q4 2018 exceeding Q2 2018 level.

Price to Earnings (P/E)

Broadcom Inc., historical P/E calculation (quarterly data)

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Nov 4, 2018 Aug 5, 2018 May 6, 2018 Feb 4, 2018 Oct 29, 2017 Jul 30, 2017 Apr 30, 2017 Jan 29, 2017 Oct 30, 2016 Jul 31, 2016 May 1, 2016 Jan 31, 2016 Nov 1, 2015 Aug 2, 2015 May 3, 2015 Feb 1, 2015 Nov 2, 2014 Aug 3, 2014 May 4, 2014 Feb 2, 2014 Nov 3, 2013 Aug 4, 2013 May 5, 2013 Feb 3, 2013
No. shares of common stock outstanding1 407,270,901 413,446,755 431,680,880 410,736,181 409,362,475 407,979,354 406,592,633 401,362,466 398,980,392 397,329,506 395,518,581 390,447,960 276,489,575 275,361,245 259,729,700 256,587,223 255,331,527 252,899,199 251,717,174 249,830,347 248,909,416 247,493,829 246,911,684 246,285,592
Selected Financial Data (USD $)
Net income (loss) attributable to common stock (in millions) 1,115  1,196  3,718  6,230  532  481  440  239  (632) (298) (1,186) 377  429  240  344  351  135  (164) 158  134  172  142  113  125 
Earnings per share (EPS)3 30.10 28.24 25.39 18.71 4.13 1.29 -0.62 -4.68 -4.36 -1.71 -0.35 3.56 4.93 3.89 2.56 1.87 1.03 1.19 2.41 2.25 2.22 0.00 0.00 0.00
Share price1, 2 244.91 235.42 268.46 267.76 261.53 246.55 254.95 222.01 181.94 168.38 164.14 144.42 140.48 128.72 142.86 124.66 101.29 87.85 71.86 62.68 51.65 38.99 37.29 36.66
P/E ratio4 8.14 8.34 10.57 14.31 63.27 190.51 – – – – – 40.57 28.48 33.13 55.71 66.64 98.34 74.06 29.85 27.91 23.29 – – –

Based on: 10-K (filing date: 2018-12-21), 10-Q (filing date: 2018-09-13), 10-Q (filing date: 2018-06-14), 10-Q (filing date: 2018-03-15), 10-K (filing date: 2017-12-21), 10-Q (filing date: 2017-09-07), 10-Q (filing date: 2017-06-08), 10-Q (filing date: 2017-03-09), 10-K (filing date: 2016-12-23), 10-Q (filing date: 2016-09-08), 10-Q (filing date: 2016-06-09), 10-Q (filing date: 2016-03-10), 10-K (filing date: 2015-12-17), 10-Q (filing date: 2015-09-10), 10-Q (filing date: 2015-06-10), 10-Q (filing date: 2015-03-11), 10-K (filing date: 2014-12-29), 10-Q (filing date: 2014-09-12), 10-Q (filing date: 2014-06-10), 10-Q (filing date: 2014-03-13), 10-K (filing date: 2013-12-20), 10-Q (filing date: 2013-09-13), 10-Q (filing date: 2013-06-07), 10-Q (filing date: 2013-03-14).

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of Broadcom Inc.’s Quarterly or Annual Report.

Q4 2018 Calculations

3 EPS = (Net income (loss) attributable to common stockQ4 2018 + Net income (loss) attributable to common stockQ3 2018 + Net income (loss) attributable to common stockQ2 2018 + Net income (loss) attributable to common stockQ1 2018) ÷ No. shares of common stock outstanding
= (1,115,000,000 + 1,196,000,000 + 3,718,000,000 + 6,230,000,000) ÷ 407,270,901 = 30.10

4 P/E ratio = Share price ÷ EPS
= 244.91 ÷ 30.10 = 8.14

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 declined from Q2 2018 to Q3 2018 and from Q3 2018 to Q4 2018.

Price to Operating Profit (P/OP)

Broadcom Inc., historical P/OP calculation (quarterly data)

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Nov 4, 2018 Aug 5, 2018 May 6, 2018 Feb 4, 2018 Oct 29, 2017 Jul 30, 2017 Apr 30, 2017 Jan 29, 2017 Oct 30, 2016 Jul 31, 2016 May 1, 2016 Jan 31, 2016 Nov 1, 2015 Aug 2, 2015 May 3, 2015 Feb 1, 2015 Nov 2, 2014 Aug 3, 2014 May 4, 2014 Feb 2, 2014 Nov 3, 2013 Aug 4, 2013 May 5, 2013 Feb 3, 2013
No. shares of common stock outstanding1 407,270,901 413,446,755 431,680,880 410,736,181 409,362,475 407,979,354 406,592,633 401,362,466 398,980,392 397,329,506 395,518,581 390,447,960 276,489,575 275,361,245 259,729,700 256,587,223 255,331,527 252,899,199 251,717,174 249,830,347 248,909,416 247,493,829 246,911,684 246,285,592
Selected Financial Data (USD $)
Operating income (loss) (in millions) 1,652  1,339  1,201  943  755  648  474  506  381  (264) (1,001) 475  514  299  418  401  301  (162) 160  139  170  140  118  124 
Operating profit per share3 12.61 10.25 8.22 6.87 5.82 4.92 2.70 -0.94 -1.03 -0.69 0.73 4.37 5.90 5.15 3.69 2.73 1.72 1.21 2.42 2.27 2.22 0.00 0.00 0.00
Share price1, 2 244.91 235.42 268.46 267.76 261.53 246.55 254.95 222.01 181.94 168.38 164.14 144.42 140.48 128.72 142.86 124.66 101.29 87.85 71.86 62.68 51.65 38.99 37.29 36.66
P/OP ratio4 19.42 22.97 32.67 39.00 44.93 50.07 94.49 – – – 226.20 33.05 23.80 24.98 38.73 45.69 59.05 72.37 29.70 27.62 23.29 – – –

Based on: 10-K (filing date: 2018-12-21), 10-Q (filing date: 2018-09-13), 10-Q (filing date: 2018-06-14), 10-Q (filing date: 2018-03-15), 10-K (filing date: 2017-12-21), 10-Q (filing date: 2017-09-07), 10-Q (filing date: 2017-06-08), 10-Q (filing date: 2017-03-09), 10-K (filing date: 2016-12-23), 10-Q (filing date: 2016-09-08), 10-Q (filing date: 2016-06-09), 10-Q (filing date: 2016-03-10), 10-K (filing date: 2015-12-17), 10-Q (filing date: 2015-09-10), 10-Q (filing date: 2015-06-10), 10-Q (filing date: 2015-03-11), 10-K (filing date: 2014-12-29), 10-Q (filing date: 2014-09-12), 10-Q (filing date: 2014-06-10), 10-Q (filing date: 2014-03-13), 10-K (filing date: 2013-12-20), 10-Q (filing date: 2013-09-13), 10-Q (filing date: 2013-06-07), 10-Q (filing date: 2013-03-14).

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of Broadcom Inc.’s Quarterly or Annual Report.

Q4 2018 Calculations

3 Operating profit per share = (Operating income (loss)Q4 2018 + Operating income (loss)Q3 2018 + Operating income (loss)Q2 2018 + Operating income (loss)Q1 2018) ÷ No. shares of common stock outstanding
= (1,652,000,000 + 1,339,000,000 + 1,201,000,000 + 943,000,000) ÷ 407,270,901 = 12.61

4 P/OP ratio = Share price ÷ Operating profit per share
= 244.91 ÷ 12.61 = 19.42

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 declined from Q2 2018 to Q3 2018 and from Q3 2018 to Q4 2018.

Price to Sales (P/S)

Broadcom Inc., historical P/S calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Nov 4, 2018 Aug 5, 2018 May 6, 2018 Feb 4, 2018 Oct 29, 2017 Jul 30, 2017 Apr 30, 2017 Jan 29, 2017 Oct 30, 2016 Jul 31, 2016 May 1, 2016 Jan 31, 2016 Nov 1, 2015 Aug 2, 2015 May 3, 2015 Feb 1, 2015 Nov 2, 2014 Aug 3, 2014 May 4, 2014 Feb 2, 2014 Nov 3, 2013 Aug 4, 2013 May 5, 2013 Feb 3, 2013
No. shares of common stock outstanding1 407,270,901 413,446,755 431,680,880 410,736,181 409,362,475 407,979,354 406,592,633 401,362,466 398,980,392 397,329,506 395,518,581 390,447,960 276,489,575 275,361,245 259,729,700 256,587,223 255,331,527 252,899,199 251,717,174 249,830,347 248,909,416 247,493,829 246,911,684 246,285,592
Selected Financial Data (USD $)
Net revenue (in millions) 5,444  5,063  5,014  5,327  4,844  4,463  4,190  4,139  4,136  3,792  3,541  1,771  1,840  1,735  1,614  1,635  1,590  1,269  701  709  738  644  562  576 
Sales per share3 51.19 48.97 45.52 45.83 43.08 41.49 39.98 38.89 33.18 27.54 22.47 17.83 24.68 23.87 23.52 20.25 16.72 13.51 11.09 10.62 10.12 0.00 0.00 0.00
Share price1, 2 244.91 235.42 268.46 267.76 261.53 246.55 254.95 222.01 181.94 168.38 164.14 144.42 140.48 128.72 142.86 124.66 101.29 87.85 71.86 62.68 51.65 38.99 37.29 36.66
P/S ratio4 4.78 4.81 5.90 5.84 6.07 5.94 6.38 5.71 5.48 6.11 7.31 8.10 5.69 5.39 6.07 6.16 6.06 6.50 6.48 5.90 5.10 – – –

Based on: 10-K (filing date: 2018-12-21), 10-Q (filing date: 2018-09-13), 10-Q (filing date: 2018-06-14), 10-Q (filing date: 2018-03-15), 10-K (filing date: 2017-12-21), 10-Q (filing date: 2017-09-07), 10-Q (filing date: 2017-06-08), 10-Q (filing date: 2017-03-09), 10-K (filing date: 2016-12-23), 10-Q (filing date: 2016-09-08), 10-Q (filing date: 2016-06-09), 10-Q (filing date: 2016-03-10), 10-K (filing date: 2015-12-17), 10-Q (filing date: 2015-09-10), 10-Q (filing date: 2015-06-10), 10-Q (filing date: 2015-03-11), 10-K (filing date: 2014-12-29), 10-Q (filing date: 2014-09-12), 10-Q (filing date: 2014-06-10), 10-Q (filing date: 2014-03-13), 10-K (filing date: 2013-12-20), 10-Q (filing date: 2013-09-13), 10-Q (filing date: 2013-06-07), 10-Q (filing date: 2013-03-14).

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of Broadcom Inc.’s Quarterly or Annual Report.

Q4 2018 Calculations

3 Sales per share = (Net revenueQ4 2018 + Net revenueQ3 2018 + Net revenueQ2 2018 + Net revenueQ1 2018) ÷ No. shares of common stock outstanding
= (5,444,000,000 + 5,063,000,000 + 5,014,000,000 + 5,327,000,000) ÷ 407,270,901 = 51.19

4 P/S ratio = Share price ÷ Sales per share
= 244.91 ÷ 51.19 = 4.78

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 declined from Q2 2018 to Q3 2018 and from Q3 2018 to Q4 2018.

Price to Book Value (P/BV)

Broadcom Inc., historical P/BV calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Nov 4, 2018 Aug 5, 2018 May 6, 2018 Feb 4, 2018 Oct 29, 2017 Jul 30, 2017 Apr 30, 2017 Jan 29, 2017 Oct 30, 2016 Jul 31, 2016 May 1, 2016 Jan 31, 2016 Nov 1, 2015 Aug 2, 2015 May 3, 2015 Feb 1, 2015 Nov 2, 2014 Aug 3, 2014 May 4, 2014 Feb 2, 2014 Nov 3, 2013 Aug 4, 2013 May 5, 2013 Feb 3, 2013
No. shares of common stock outstanding1 407,270,901 413,446,755 431,680,880 410,736,181 409,362,475 407,979,354 406,592,633 401,362,466 398,980,392 397,329,506 395,518,581 390,447,960 276,489,575 275,361,245 259,729,700 256,587,223 255,331,527 252,899,199 251,717,174 249,830,347 248,909,416 247,493,829 246,911,684 246,285,592
Selected Financial Data (USD $)
Total Broadcom Inc. stockholders’ equity (in millions) 26,657  27,452  32,067  25,901  20,285  19,802  19,425  19,033  18,892  19,473  19,702  5,121  4,714  4,281  4,061  3,628  3,243  3,098  3,154  2,992  2,886  2,726  2,611  2,518 
Book value per share (BVPS)3 65.45 66.40 74.28 63.06 49.55 48.54 47.78 47.42 47.35 49.01 49.81 13.12 17.05 15.55 15.64 14.14 12.70 12.25 12.53 11.98 11.59 11.01 10.57 10.22
Share price1, 2 244.91 235.42 268.46 267.76 261.53 246.55 254.95 222.01 181.94 168.38 164.14 144.42 140.48 128.72 142.86 124.66 101.29 87.85 71.86 62.68 51.65 38.99 37.29 36.66
P/BV ratio4 3.74 3.55 3.61 4.25 5.28 5.08 5.34 4.68 3.84 3.44 3.30 11.01 8.24 8.28 9.14 8.82 7.97 7.17 5.74 5.23 4.45 3.54 3.53 3.59

Based on: 10-K (filing date: 2018-12-21), 10-Q (filing date: 2018-09-13), 10-Q (filing date: 2018-06-14), 10-Q (filing date: 2018-03-15), 10-K (filing date: 2017-12-21), 10-Q (filing date: 2017-09-07), 10-Q (filing date: 2017-06-08), 10-Q (filing date: 2017-03-09), 10-K (filing date: 2016-12-23), 10-Q (filing date: 2016-09-08), 10-Q (filing date: 2016-06-09), 10-Q (filing date: 2016-03-10), 10-K (filing date: 2015-12-17), 10-Q (filing date: 2015-09-10), 10-Q (filing date: 2015-06-10), 10-Q (filing date: 2015-03-11), 10-K (filing date: 2014-12-29), 10-Q (filing date: 2014-09-12), 10-Q (filing date: 2014-06-10), 10-Q (filing date: 2014-03-13), 10-K (filing date: 2013-12-20), 10-Q (filing date: 2013-09-13), 10-Q (filing date: 2013-06-07), 10-Q (filing date: 2013-03-14).

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of Broadcom Inc.’s Quarterly or Annual Report.

Q4 2018 Calculations

3 BVPS = Total Broadcom Inc. stockholders’ equity ÷ No. shares of common stock outstanding
= 26,657,000,000 ÷ 407,270,901 = 65.45

4 P/BV ratio = Share price ÷ BVPS
= 244.91 ÷ 65.45 = 3.74

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 declined from Q2 2018 to Q3 2018 but then increased from Q3 2018 to Q4 2018 exceeding Q2 2018 level.