AVGO Broadcom Inc. - Fundamental Analysis

NEUTRAL

AVGO Stock | Fundamental Analysis & Investment Insights

NASDAQ • Technology • Semiconductors

Current Price Live

$320.05

Analyst Target

$456.12

+42.5% Upside

52W High

$414.61

52W Low

$138.1

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AI Analysis

Confidence Score

75%

Analysis Accuracy

AVGO exhibits strong fundamental health with a Piotroski F-Score of 7/9, indicating robust financial performance across profitability, leverage, and operating efficiency. Despite this, the stock trades at a significant premium to both its Graham Number ($79.14) and intrinsic value estimate ($138.65), currently priced at $320.05, reflecting high growth expectations. While earnings and revenue growth are impressive, particularly with YoY earnings growth exceeding 188%, elevated valuation multiples and bearish insider activity—$442.93M in net sales—temper optimism. Analysts maintain a strong_buy consensus, but technical trend and recent price weakness suggest near-term caution.

Key Strengths

Strong Piotroski F-Score of 7/9 indicates high financial health and consistent profitability

Exceptional profitability metrics: 36.20% net margin, 77.33% gross margin, and 31.05% ROE

Robust year-over-year revenue (16.40%) and earnings growth (188.10%) driven by semiconductor demand

Consistent earnings beat record: 3 out of last 4 quarters beat estimates with positive surprises

High analyst confidence: 45 analysts rate it a strong_buy with a $456.12 average target price

Key Risks

Extremely high valuation: P/E of 68.10 and Price/Sales of 23.75 well above sector averages

Significant insider selling: $442.93M in net sell transactions over the last 6 months

Debt/Equity ratio of 1.66 is elevated compared to sector average of 0.61, increasing financial risk

Technical trend score of 0/100 and recent price declines (-8.6% over 1M, -9.0% over 1W) signal weakening momentum

Lack of Altman Z-Score prevents definitive assessment of bankruptcy risk, but high leverage is a concern

AI Fair Value Estimate

Based on comprehensive analysis

$138.65

-56.7% below current price

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Sector Comparison & Peer Analysis

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Insider Trading & Analyst Ratings

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