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AVGO vs PLUS

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
PLUS
ePlus inc.
NEUTRAL
Price
$82.31
Market Cap
$2.18B
Sector
Technology
AI Confidence
80%

Valuation

P/E Ratio
AVGO
68.48
PLUS
14.7
Forward P/E
AVGO
19.65
PLUS
14.84
P/B Ratio
AVGO
20.79
PLUS
2.02
P/S Ratio
AVGO
24.35
PLUS
0.9
EV/EBITDA
AVGO
46.0
PLUS
8.67

Profitability

Gross Margin
AVGO
76.73%
PLUS
26.59%
Operating Margin
AVGO
44.94%
PLUS
7.07%
Profit Margin
AVGO
36.57%
PLUS
5.52%
ROE
AVGO
33.37%
PLUS
14.62%
ROA
AVGO
10.66%
PLUS
6.76%

Growth

Revenue Growth
AVGO
29.5%
PLUS
24.6%
Earnings Growth
AVGO
31.6%
PLUS
46.3%

Financial Health

Debt/Equity
AVGO
0.83
PLUS
0.13
Current Ratio
AVGO
1.9
PLUS
2.13
Quick Ratio
AVGO
1.67
PLUS
1.56

Dividends

Dividend Yield
AVGO
0.74%
PLUS
1.21%
Payout Ratio
AVGO
47.17%
PLUS
8.93%

AI Verdict

AVGO NEUTRAL

Broadcom exhibits a dichotomy between elite operational performance and poor deterministic value metrics. While the Piotroski F-Score of 4/9 indicates stable health, the stock trades at a massive premium to its Graham Number ($44.08) and Intrinsic Value ($151.04). This valuation gap is partially justified by a very attractive PEG ratio (0.68) and strong forward P/E (19.65), suggesting high growth expectations. However, aggressive insider selling by the CEO and CFO, combined with a bearish technical trend, offsets the strong analyst 'strong_buy' consensus.

Strengths
Exceptional profitability with 76.73% gross margins and 44.94% operating margins
Strong growth trajectory with ~30% YoY increases in both revenue and earnings
Impressive earnings track record with consistent beats over 25 quarters
Risks
Severe overvaluation relative to defensive fair value (Graham Number)
Strong bearish insider sentiment with 14 sell transactions and 0 buys
Technical trend is currently 0/100 (Bearish)
PLUS NEUTRAL

The company presents a stark dichotomy between strong growth and deteriorating fundamental health, evidenced by a weak Piotroski F-Score of 2/9. While the stock is attractively valued with a PEG ratio of 0.82 and trades well below its growth-based intrinsic value of $165.2, the deterministic health markers and bearish technical trend suggest underlying instability. Strong revenue and earnings growth are currently offsetting these risks, but the low F-Score indicates a need for caution regarding cash flow or operational efficiency.

Strengths
Exceptional earnings growth (YoY +46.30%) and revenue growth (YoY +24.60%)
Very low leverage with a Debt/Equity ratio of 0.13
Strong valuation metrics including a low P/E of 14.70 and a PEG of 0.82
Risks
Weak Piotroski F-Score (2/9) indicating poor fundamental health trends
Bearish technical trend (0/100) and negative insider sentiment
Thin profit margins (5.52%) which leave little room for operational error

Compare Another Pair

AVGO vs PLUS: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and ePlus inc. (PLUS) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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