Broadcom stock: fundamental analysis
Stocks · AVGO · Technology
Broadcom Inc. designs, develops, and supplies various semiconductor devices and infrastructure software solutions internationally. The company operates in two segments: Semiconductor Solutions and Infrastructure Software. Below are its fundamentals, explained in the order worth reading them: business quality, debt, growth and, last, whether the price is reasonable.
- Price: 357.61 USD
- Market cap: 1.7T USD
Data as of September 18, 2026 · Yahoo Finance
Quick read
Business quality
ROE of 44.3%: it earns a high return on shareholders' money. Out of every 100 in sales, 42.9 end up as profit.
Financial health
Net debt/EBITDA of 0.7x: it could repay its debt with less than two years of operating profit. Comfortable leverage.
Growth
Revenue is growing 85.5% year on year: a solid pace. Earnings are up 215.3%.
Valuation
It trades at a P/E of 45.6, above the 28.1 median of the technology companies we track. On expected earnings the P/E falls to 18.4: the market expects profits to rise. Paying more can be justified by faster growth or a higher-quality business.
Dividend
Dividend yield of 0.8% (2.60 USD per share per year) with a payout ratio of 32.4%.
Tools
All metrics
| Broadcom | Sector median | |
|---|---|---|
| Business quality | ||
| ROE | 44.3% | 34.0% |
| ROA | 15.4% | 11.9% |
| Gross margin | 75.5% | 52.2% |
| Operating margin | 54.3% | 30.4% |
| Net margin | 42.9% | 27.6% |
| Financial health | ||
| Net debt/EBITDA | 0.7x | 0.7x |
| Debt/equity | 0.6x | 0.5x |
| Current ratio | 2.5x | 1.7x |
| Growth | ||
| Revenue growth | 85.5% | 35.2% |
| Earnings growth | 215.3% | 127.8% |
| Valuation | ||
| P/E ratio | 45.6x | 28.1x |
| Forward P/E | 18.4x | 19.9x |
| EV/EBITDA | 33.3x | 27.8x |
| Price/book | 17.1x | 10.9x |
| FCF yield | 1.8% | 1.4% |
| Dividend | ||
| Dividend yield | 0.8% | 0.6% |
| Payout ratio | 32.4% | 20.9% |
| Beta (volatility) | 1.5x | 1.3x |
Frequently asked questions
What is Broadcom's P/E ratio?
Broadcom's P/E is 45.6 based on trailing 12-month earnings and 18.4 on expected earnings. The median for its sector among the companies we track is 28.1. Data as of September 18, 2026.
What dividend does Broadcom pay?
Dividend yield of 0.8% (2.60 USD per share per year) with a payout ratio of 32.4%.
Is Broadcom stock expensive?
It trades at a P/E of 45.6, above the 28.1 median of the technology companies we track. On expected earnings the P/E falls to 18.4: the market expects profits to rise. Paying more can be justified by faster growth or a higher-quality business. This is an educational reading based on ratios, not a buy or sell recommendation.
Does Broadcom have a lot of debt?
Net debt/EBITDA of 0.7x: it could repay its debt with less than two years of operating profit. Comfortable leverage.
What is Broadcom's market cap?
Broadcom has a market cap of 1.7T USD and its shares trade at 357.61 USD, with a 52-week range of 289.96 USD to 495.00 USD (data as of September 18, 2026).
Other companies in the sector
Trailing 12-month metrics. Educational content, not investment advice.