Common Stock Valuation Ratios (Price Multiples)
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).
Current Valuation Ratios
Broadcom Inc., current price multiples
| Broadcom Inc. | Advanced Micro Devices Inc. | Analog Devices Inc. | Applied Materials Inc. | Intel Corp. | KLA Corp. | Lam Research Corp. | Micron Technology Inc. | Monolithic Power Systems Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | Semiconductors & Semiconductor Equipment | Information Technology | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||
| Current share price (P) | $253.77 | ||||||||||||||||
| No. shares of common stock outstanding | 4,703,470,979 | ||||||||||||||||
| Growth rate (g) | -5.11% | ||||||||||||||||
| Earnings per share (EPS) | $1.25 | ||||||||||||||||
| Next year expected EPS | $1.19 | ||||||||||||||||
| Operating profit per share | $2.86 | ||||||||||||||||
| Sales per share | $10.97 | ||||||||||||||||
| Book value per share (BVPS) | $14.39 | ||||||||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||||||||
| Price to earnings (P/E) | 202.48 | 128.03 | 70.09 | 19.23 | — | 41.00 | 30.61 | 175.36 | 18.56 | 48.27 | 16.58 | 38.12 | 116.97 | 53.27 | |||
| Price to next year expected earnings | 213.38 | 114.85 | 68.59 | 14.37 | — | 27.13 | 21.67 | 159.10 | 15.70 | 34.58 | 11.94 | 32.72 | 105.12 | 42.53 | |||
| Price to operating profit (P/OP) | 88.66 | 110.58 | 56.39 | 17.54 | — | 33.84 | 27.48 | 104.63 | 61.49 | 43.19 | 16.70 | 33.48 | 84.11 | 41.49 | |||
| Price to sales (P/S) | 23.14 | 8.15 | 12.16 | 5.08 | 1.74 | 11.54 | 7.86 | 5.43 | 15.03 | 26.96 | 4.32 | 11.70 | 17.98 | 11.04 | |||
| Price to book value (P/BV) | 17.64 | 3.65 | 3.26 | 7.26 | 0.93 | 33.62 | 13.72 | 3.02 | 10.54 | 44.34 | 6.40 | 10.82 | 14.16 | 15.65 | |||
Based on: 10-K (reporting date: 2024-11-03).
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
Based on: 10-K (reporting date: 2024-11-03), 10-K (reporting date: 2023-10-29), 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).
- Price to Earnings (P/E) Ratio
- The P/E ratio exhibited a fluctuating pattern over the analyzed periods. Starting at 47.09 in 2019, it peaked significantly at 66.38 in 2020, followed by a decline to 20.7 in 2022. Afterward, it surged again, reaching a very high value of 175.56 in 2024. This suggests periods of varying market expectations about future earnings, with notable optimism or perceived growth potential in 2020 and especially in 2024.
- Price to Operating Profit (P/OP) Ratio
- This ratio followed a similar trajectory to the P/E ratio, with initial growth from 36.85 in 2019 to 44.04 in 2020, then a decline to 16.33 in 2022. It rose once more to 76.87 in 2024, indicating fluctuating investor sentiment toward the company's operational performance. The sharp increase in 2024 implies a higher valuation relative to operating profit compared to previous years.
- Price to Sales (P/S) Ratio
- The P/S ratio demonstrated an overall increasing trend, rising from 5.62 in 2019 to 20.07 in 2024. Noteworthy is the consistent growth between 2021 and 2024, suggesting the market assigned progressively higher value to each unit of sales over time. The increase to 14.46 in 2023 and then to over 20 in 2024 reflects heightened expectations for revenue growth or profitability premium.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio displayed a rising trend from 5.09 in 2019 to a peak of 21.59 in 2023, followed by a decrease to 15.29 in 2024. The substantial increase indicates growing market valuation in relation to the company’s book equity up until 2023, despite a moderate correction in the latest period. This pattern could reflect changes in asset valuation perceptions or strategic investments impacting book value.
Price to Earnings (P/E)
Broadcom Inc., historical P/E calculation, comparison to benchmarks
| Nov 3, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 4,687,356,156 | 4,681,405,690 | 4,178,861,400 | 4,128,739,680 | 4,067,131,180 | 3,977,922,890 | |
| Selected Financial Data (US$) | |||||||
| Net income attributable to common stock (in millions) | 5,895) | 14,082) | 11,223) | 6,437) | 2,663) | 2,695) | |
| Earnings per share (EPS)2 | 1.26 | 3.01 | 2.69 | 1.56 | 0.65 | 0.68 | |
| Share price1, 3 | 220.79 | 110.65 | 55.59 | 63.50 | 43.46 | 31.90 | |
| Valuation Ratio | |||||||
| P/E ratio4 | 175.56 | 36.78 | 20.70 | 40.73 | 66.38 | 47.09 | |
| Benchmarks | |||||||
| P/E Ratio, Competitors5 | |||||||
| Advanced Micro Devices Inc. | 110.61 | 317.27 | 96.16 | 45.54 | 41.66 | — | |
| Analog Devices Inc. | 66.48 | 27.14 | 31.21 | 68.31 | 41.43 | 31.04 | |
| Applied Materials Inc. | 19.20 | 19.63 | 13.55 | 22.05 | 22.31 | 20.25 | |
| Intel Corp. | — | 109.27 | 14.54 | 9.85 | 11.02 | — | |
| KLA Corp. | 34.24 | 20.04 | 16.89 | 25.97 | 25.92 | 18.44 | |
| Lam Research Corp. | 27.05 | 19.26 | 13.77 | 21.03 | 24.23 | 13.64 | |
| Micron Technology Inc. | 145.72 | — | 6.62 | 13.38 | 21.80 | 7.98 | |
| Monolithic Power Systems Inc. | 15.51 | 81.98 | 52.21 | 88.67 | 107.98 | — | |
| NVIDIA Corp. | 56.68 | 131.70 | 68.08 | 78.54 | 67.59 | — | |
| Qualcomm Inc. | 18.95 | 17.07 | 9.75 | 17.15 | 28.06 | 22.03 | |
| Texas Instruments Inc. | 34.72 | 22.24 | 18.88 | 20.38 | 27.95 | — | |
| P/E Ratio, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 76.42 | 48.70 | 23.05 | 24.53 | 25.50 | — | |
| P/E Ratio, Industry | |||||||
| Information Technology | 44.83 | 35.97 | 26.85 | 29.54 | 31.13 | — | |
Based on: 10-K (reporting date: 2024-11-03), 10-K (reporting date: 2023-10-29), 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).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
EPS = Net income attributable to common stock ÷ No. shares of common stock outstanding
= 5,895,000,000 ÷ 4,687,356,156 = 1.26
3 Closing price as at the filing date of Broadcom Inc. Annual Report.
4 2024 Calculation
P/E ratio = Share price ÷ EPS
= 220.79 ÷ 1.26 = 175.56
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibits a consistent upward trajectory over the analyzed periods, increasing from $31.90 in November 2019 to $220.79 in November 2024. Notably, the price nearly doubled from $110.65 in October 2023 to $220.79 in November 2024, indicating a strong market valuation increase in the most recent year.
- Earnings Per Share (EPS) Fluctuations
- EPS showed initial stability with slight variation between 2019 and 2020, decreasing marginally from $0.68 to $0.65. Thereafter, a significant rise occurred, reaching a peak of $3.01 in October 2023. However, the subsequent period experienced a notable decline to $1.26 by November 2024, suggesting decreased profitability or one-time charges impacting earnings.
- Price-to-Earnings (P/E) Ratio Analysis
- The P/E ratio displayed marked volatility. Starting at 47.09 in 2019, it peaked at 66.38 in 2020, then sharply declined to 20.7 in 2022, indicating improved earnings relative to share price during that period. The ratio increased again to 36.78 in 2023, followed by a dramatic rise to 175.56 in 2024, reflecting a high market valuation relative to earnings, possibly due to the decline in EPS combined with an elevated share price.
- Integrated Insights
- Overall, the data reveal strong stock price appreciation accompanied by fluctuating earnings performance. The sharp increase in P/E ratio in the latest period suggests elevated investor expectations or potential overvaluation given the decreased EPS. Such divergence between market price and earnings warrants close monitoring for sustainability of the stock’s valuation.
Price to Operating Profit (P/OP)
Broadcom Inc., historical P/OP calculation, comparison to benchmarks
| Nov 3, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 4,687,356,156 | 4,681,405,690 | 4,178,861,400 | 4,128,739,680 | 4,067,131,180 | 3,977,922,890 | |
| Selected Financial Data (US$) | |||||||
| Operating income (in millions) | 13,463) | 16,207) | 14,225) | 8,519) | 4,014) | 3,444) | |
| Operating profit per share2 | 2.87 | 3.46 | 3.40 | 2.06 | 0.99 | 0.87 | |
| Share price1, 3 | 220.79 | 110.65 | 55.59 | 63.50 | 43.46 | 31.90 | |
| Valuation Ratio | |||||||
| P/OP ratio4 | 76.87 | 31.96 | 16.33 | 30.78 | 44.04 | 36.85 | |
| Benchmarks | |||||||
| P/OP Ratio, Competitors5 | |||||||
| Advanced Micro Devices Inc. | 95.53 | 675.69 | 100.42 | 39.48 | 75.77 | — | |
| Analog Devices Inc. | 53.48 | 23.53 | 26.16 | 56.12 | 33.76 | 24.74 | |
| Applied Materials Inc. | 17.52 | 17.58 | 11.35 | 18.85 | 18.50 | 16.36 | |
| Intel Corp. | — | 1,984.43 | 49.91 | 10.06 | 9.72 | — | |
| KLA Corp. | 28.26 | 16.99 | 15.36 | 21.69 | 20.99 | 15.60 | |
| Lam Research Corp. | 24.29 | 16.79 | 11.79 | 18.34 | 20.40 | 12.13 | |
| Micron Technology Inc. | 86.94 | — | 5.93 | 12.48 | 19.51 | 6.83 | |
| Monolithic Power Systems Inc. | 51.38 | 72.73 | 43.38 | 81.78 | 111.71 | — | |
| NVIDIA Corp. | 51.16 | 136.19 | 66.12 | 75.08 | 66.40 | — | |
| Qualcomm Inc. | 19.08 | 15.85 | 7.95 | 15.84 | 23.32 | 12.60 | |
| Texas Instruments Inc. | 30.49 | 19.75 | 16.29 | 17.67 | 26.53 | — | |
| P/OP Ratio, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 54.96 | 44.88 | 21.44 | 22.29 | 22.63 | — | |
| P/OP Ratio, Industry | |||||||
| Information Technology | 34.92 | 29.96 | 22.79 | 26.09 | 26.95 | — | |
Based on: 10-K (reporting date: 2024-11-03), 10-K (reporting date: 2023-10-29), 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).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 13,463,000,000 ÷ 4,687,356,156 = 2.87
3 Closing price as at the filing date of Broadcom Inc. Annual Report.
4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 220.79 ÷ 2.87 = 76.87
5 Click competitor name to see calculations.
- Share Price
- The share price demonstrates a consistent upward trend over the analyzed periods, increasing substantially from $31.9 in late 2019 to $220.79 in late 2024. This represents a growth of nearly sevenfold within five years, indicating strong market confidence or significant value appreciation over time. Notably, the share price experienced a sharp rise particularly between 2022 and 2024.
- Operating Profit Per Share
- The operating profit per share shows an overall increasing pattern from $0.87 in 2019 to a peak of $3.46 in 2023, followed by a slight decline to $2.87 in 2024. The increase from 2019 to 2023 suggests improving operational efficiency or profitability. However, the decrease in 2024 may indicate emerging challenges impacting profit generation at the operating level.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio fluctuates considerably over the periods. Starting at 36.85 in 2019, the ratio peaks at 44.04 in 2020 before declining to a low of 16.33 in 2022, reflecting a period where operating profits grew faster relative to the share price. Post-2022, the ratio increases again sharply, reaching 76.87 in 2024. This rise suggests the share price outpaced operating profit growth significantly in the most recent year, potentially implying market optimism or overvaluation relative to operating profits.
- Overall Insights
- The data highlights strong share price growth with improving operating profit per share until 2023, followed by a modest decline in operating profits and an elevated valuation multiple in 2024. This pattern may indicate increasing investor expectations or external factors influencing market valuation beyond operational performance. The disconnect between the sharp share price rise and the dip in operating profit in 2024 warrants further investigation to understand underlying causes and sustainability.
Price to Sales (P/S)
Broadcom Inc., historical P/S calculation, comparison to benchmarks
| Nov 3, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 4,687,356,156 | 4,681,405,690 | 4,178,861,400 | 4,128,739,680 | 4,067,131,180 | 3,977,922,890 | |
| Selected Financial Data (US$) | |||||||
| Net revenue (in millions) | 51,574) | 35,819) | 33,203) | 27,450) | 23,888) | 22,597) | |
| Sales per share2 | 11.00 | 7.65 | 7.95 | 6.65 | 5.87 | 5.68 | |
| Share price1, 3 | 220.79 | 110.65 | 55.59 | 63.50 | 43.46 | 31.90 | |
| Valuation Ratio | |||||||
| P/S ratio4 | 20.07 | 14.46 | 7.00 | 9.55 | 7.40 | 5.62 | |
| Benchmarks | |||||||
| P/S Ratio, Competitors5 | |||||||
| Advanced Micro Devices Inc. | 7.04 | 11.95 | 5.38 | 8.76 | 10.63 | — | |
| Analog Devices Inc. | 11.53 | 7.31 | 7.14 | 12.98 | 9.03 | 7.06 | |
| Applied Materials Inc. | 5.07 | 5.08 | 3.43 | 5.63 | 4.69 | 3.75 | |
| Intel Corp. | 1.58 | 3.40 | 1.85 | 2.48 | 2.96 | — | |
| KLA Corp. | 9.64 | 6.47 | 6.09 | 7.80 | 5.43 | 4.74 | |
| Lam Research Corp. | 6.95 | 4.99 | 3.68 | 5.62 | 5.43 | 3.10 | |
| Micron Technology Inc. | 4.51 | 4.94 | 1.87 | 2.83 | 2.73 | 2.15 | |
| Monolithic Power Systems Inc. | 12.56 | 19.24 | 12.74 | 17.77 | 21.02 | — | |
| NVIDIA Corp. | 27.69 | 21.33 | 24.67 | 20.41 | 17.31 | — | |
| Qualcomm Inc. | 4.93 | 3.45 | 2.85 | 4.62 | 6.20 | 3.98 | |
| Texas Instruments Inc. | 10.65 | 8.26 | 8.25 | 8.63 | 10.81 | — | |
| P/S Ratio, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 11.75 | 8.33 | 5.86 | 6.30 | 5.85 | — | |
| P/S Ratio, Industry | |||||||
| Information Technology | 9.29 | 7.33 | 6.02 | 6.97 | 6.11 | — | |
Based on: 10-K (reporting date: 2024-11-03), 10-K (reporting date: 2023-10-29), 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).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Sales per share = Net revenue ÷ No. shares of common stock outstanding
= 51,574,000,000 ÷ 4,687,356,156 = 11.00
3 Closing price as at the filing date of Broadcom Inc. Annual Report.
4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= 220.79 ÷ 11.00 = 20.07
5 Click competitor name to see calculations.
- Share Price
- The share price demonstrated a significant upward trend over the analyzed periods. Beginning at $31.90 in late 2019, it gradually increased to $43.46 in 2020 and $63.50 in 2021. A slight decrease was observed in 2022, with the price dropping to $55.59. However, this was followed by a strong recovery and substantial growth in the subsequent years, reaching $110.65 in 2023 and more than doubling to $220.79 by 2024.
- Sales Per Share
- Sales per share showed consistent growth from 2019 to 2024, with a moderate rise from $5.68 in 2019 to $7.95 in 2022. A minor dip occurred in 2023, declining slightly to $7.65, before surging sharply to $11.00 in 2024. This pattern indicates an overall positive sales performance with a temporary fluctuation in 2023.
- Price-to-Sales (P/S) Ratio
- The P/S ratio followed a pattern generally aligned with the share price movement but with greater volatility. It increased steadily from 5.62 in 2019 to 9.55 in 2021, then declined to 7.00 in 2022, mirroring the drop in share price that year. From 2022 onwards, the ratio escalated dramatically, reaching 14.46 in 2023 and peaking at 20.07 in 2024, reflecting increased market valuation relative to sales.
- Overall Insights
- Across the six-year span, the data indicates sustained growth in market valuation and sales performance per share, despite some short-term inconsistencies, particularly around 2022-2023. The steep increase in both share price and P/S ratio in recent years points to heightened investor optimism and potentially increased market expectations regarding future growth prospects. The temporary sales dip in 2023 did not notably hinder the overall market valuation trend, suggesting confidence in underlying fundamentals or expected improvements ahead.
Price to Book Value (P/BV)
Broadcom Inc., historical P/BV calculation, comparison to benchmarks
| Nov 3, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 4,687,356,156 | 4,681,405,690 | 4,178,861,400 | 4,128,739,680 | 4,067,131,180 | 3,977,922,890 | |
| Selected Financial Data (US$) | |||||||
| Stockholders’ equity (in millions) | 67,678) | 23,988) | 22,709) | 24,962) | 23,874) | 24,941) | |
| Book value per share (BVPS)2 | 14.44 | 5.12 | 5.43 | 6.05 | 5.87 | 6.27 | |
| Share price1, 3 | 220.79 | 110.65 | 55.59 | 63.50 | 43.46 | 31.90 | |
| Valuation Ratio | |||||||
| P/BV ratio4 | 15.29 | 21.59 | 10.23 | 10.50 | 7.40 | 5.09 | |
| Benchmarks | |||||||
| P/BV Ratio, Competitors5 | |||||||
| Advanced Micro Devices Inc. | 3.15 | 4.85 | 2.32 | 19.21 | 17.77 | — | |
| Analog Devices Inc. | 3.09 | 2.53 | 2.35 | 2.50 | 4.22 | 3.61 | |
| Applied Materials Inc. | 7.25 | 8.23 | 7.25 | 10.60 | 7.63 | 6.67 | |
| Intel Corp. | 0.85 | 1.75 | 1.15 | 2.05 | 2.84 | — | |
| KLA Corp. | 28.07 | 23.25 | 40.05 | 15.98 | 11.83 | 8.15 | |
| Lam Research Corp. | 12.13 | 10.58 | 10.10 | 13.64 | 10.55 | 6.40 | |
| Micron Technology Inc. | 2.51 | 1.74 | 1.15 | 1.79 | 1.50 | 1.40 | |
| Monolithic Power Systems Inc. | 8.81 | 17.09 | 13.69 | 17.25 | 18.36 | — | |
| NVIDIA Corp. | 39.25 | 26.03 | 24.95 | 20.14 | 15.49 | — | |
| Qualcomm Inc. | 7.31 | 5.72 | 7.00 | 15.59 | 24.00 | 19.69 | |
| Texas Instruments Inc. | 9.86 | 8.57 | 11.33 | 11.87 | 17.02 | — | |
| P/BV Ratio, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 9.25 | 6.50 | 5.22 | 6.29 | 6.21 | — | |
| P/BV Ratio, Industry | |||||||
| Information Technology | 13.17 | 11.47 | 10.47 | 12.50 | 11.10 | — | |
Based on: 10-K (reporting date: 2024-11-03), 10-K (reporting date: 2023-10-29), 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).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 67,678,000,000 ÷ 4,687,356,156 = 14.44
3 Closing price as at the filing date of Broadcom Inc. Annual Report.
4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= 220.79 ÷ 14.44 = 15.29
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited a generally upward trend over the analyzed periods. It increased from $31.90 in 2019 to $220.79 in 2024, representing a significant appreciation in market value. Notably, there was a sharp rise between 2022 and 2024, nearly doubling from $110.65 to $220.79, despite a dip observed in 2022 compared to 2021.
- Book Value Per Share (BVPS)
- BVPS demonstrated relative stability with minor fluctuations from 2019 to 2023, ranging between $5.12 and $6.27. However, in 2024, there was a marked increase to $14.44, nearly tripling the previous year’s value. This suggests a significant growth in the company's net asset value on a per-share basis in the most recent year.
- Price-to-Book Value Ratio (P/BV)
- The P/BV ratio showed a rising trend from 5.09 in 2019 to a peak of 21.59 in 2023, indicating growing market valuation relative to the book value. In 2024, the ratio decreased to 15.29, which, despite being lower than the previous year, remains elevated compared to earlier periods. This movement reflects a complex interplay between the increased share price and the sharply higher BVPS recorded in 2024.