Broadcom Inc (AVGO) stock analysis
Broadcom Inc (AVGO) clears 3 of this site's 8 mechanical value filters, 5 of 8 Buffett-style checks and 2 of 5 Lynch-style checks. At $323.24 it trades 130.5% above this site's neutral DCF value (a margin of safety of -130.5%). Its earnings quality rates Weak and it returns +0.4% to shareholders net of dilution. Figures are as of October 23, 2026, from SEC filings and market data refreshed weekly; this is educational analysis, not investment advice.
Data as of October 23, 2026. Refreshed weekly from SEC filings and market data.
What does Broadcom do?
Broadcom designs chips for data-center networking, custom AI accelerators, broadband and wireless, and sells enterprise infrastructure software after buying VMware in 2023. Software is now a large share of its revenue and profit.
Brands and businesses it owns
- VMware
- CA Technologies
- Symantec Enterprise
- Brocade
What stands out about Broadcom?
- The share price implies 29.7% yearly growth. At $323.24, AVGO's free cash flow of $8.21 per share would have to grow 29.7% a year, fading to 2.5% by year 10, for this site's DCF (10% discount rate) to match the price. This site's baseline starts at 8%, so the price asks for more growth than the baseline. Change the assumptions.
- Misses 3 of the 8 value filters. It fails Trailing P/E < 25 (40.53), Price/Book < 8 (15.56) and Price/Sales < 7 (17.41); the other 3 pass and 2 were not evaluated. See every filter.
- The margin of safety is rising. It went from -170% on Oct 7 to -130% on Oct 23 across 5 weekly readings. See the trend.
- Strongest against peers: net margin. At 42.9% (peer median 26.9%) it ranks 3rd of 20 among semiconductors stocks this site tracks. See the ranking.
- Earnings quality: Weak · 2 flags, 1 watch. Beneish M-score −2.08 (grey zone), mostly from receivables growing faster than sales · accruals −2.6% of assets · 152% of profit arrived as cash · stock comp 11.8% of revenue · share count +6.6% a year. From the latest 10-K (year to Nov 2025). See the Earnings Quality Screener.
How has Broadcom's share price moved?
The interactive price chart needs JavaScript.
Is Broadcom undervalued? The value diligence check
Every value-investing signal this site computes for this stock, gathered in one place: the same real numbers from the tools below, not a new score.
- Margin of safety (DCF) -130.5%
- P/E vs. its own history 40.5x · near the cheap end Real range: 16.8x–136.9x over 5 years (net income per diluted share from each fiscal year's 10-K, paired with the real closing price at that fiscal year-end).
- Wall St. analyst rating Buy · 4.23/5 56 analysts this month: 17 strong buy, 35 buy, 4 hold, 0 sell, 0 strong sell (Finnhub). Up from 4.21 last month.
- Altman Z″-Score (bankruptcy risk) 2.64 · Safe zone
- Earnings quality (is the profit real?) Weak · 2 flags, 1 watch Beneish M-score −2.08 (grey zone), mostly from receivables growing faster than sales · accruals −2.6% of assets · 152% of profit arrived as cash · stock comp 11.8% of revenue · share count +6.6% a year. From the latest 10-K (year to Nov 2025) - see the Earnings Quality Screener for how each check is scored.
- Shareholder yield (cash back to owners) +0.4% net Latest fiscal year (2025): dividends 0.7% + buybacks 0.2% − stock comp 0.5%, as a share of today's market cap. Over 14 years its split-adjusted share count rose 92%. See Shareholder Yield Leaders.
- Capital needed to grow (See's test) $3.99 per $1 of new profit · Capital-hungry · but only 17% return on capital Operating profit $2.4B → $18B, capital needed $42B → $105B, 2016–2025 (3-year averages); return on capital now 17% before tax. Buffett's See's Candies needed $0.42 per $1 of new profit, FlightSafety $3.20, a typical grower about $5. Cyclical: the answer depends on where in its cycle the window starts and ends. See Capital-Light Compounders.
- PEG (growth at a reasonable price) 0.70 · Under fair P/E 40.5× ÷ 57.6% a year of growth behind it. 58th lowest of 447 stocks with a usable PEG. Lynch's fair value is a PEG of 1; a very high PEG usually means almost no growth, a very low one a profit spike. See PEG Ratio Ranking.
- Compounder lenses (4) 1 of 4 · misses capital-light, real profit, cash back Capital-light growth: not cleared (only 17% return on capital); Profit is real: not cleared (2 earnings-quality flags); Cash to owners: not cleared (+0.6% a year net); Fair price (PEG): cleared. See Compounders at a Fair Price, which also lets you move the PEG bar.
- Value trap check Clear
- Munger's Inversion Check 2 flags
- Standing vs. sector peers 6 of 7 measures above the median Compared with the 19 other semiconductors stocks this site tracks: 3 in the top third, 1 in the bottom third.
- Dividend payout sustainability 0/6 · clean
How does Broadcom compare with its peers?
6 of 7 measures sit above the median of the 19 other semiconductors stocks tracked here, 3 in the top third and 1 in the bottom third.
- P/E ratiolower is cheaper · peer median 42.5× 40.5× –8th of 19
- Free-cash-flow yieldhigher is cheaper · peer median 2.5% 2.5% –10th of 20
- Return on equityhigher is better · peer median 25% 44% ✓5th of 20
- Net marginhigher is better · peer median 26.9% 42.9% ✓3rd of 20
- Revenue growthhigher is better, year on year · peer median 23.8% 48.7% ✓4th of 19
- Debt / equitylower is safer · peer median 0.29 0.60 ✕15th of 20
- Dividend yieldamong dividend payers · peer median 0.66% 0.78% –8th of 16
Peers are the stocks this site tracks in the same sector group, not every listed competitor. The bar runs from the weakest peer (left) to the strongest (right); the tick is the middle. Measures that don't apply to a sector (cash-flow yield for banks, debt for financials) are left out.
What would Buffett & Lynch say?
Buffett's checklist is built around durable, profitable businesses bought at sensible prices, and AVGO doesn't clear enough of it yet. In its favor: AVGO is currently earning a strong return on shareholders' equity, and has kept that profitability up over five years, not just this year, converts sales into profit at healthy margins, has grown earnings per share at a solid clip over five years, and earns many times its interest expense, so debt service isn't a worry. Where it comes up short: AVGO carries more debt relative to equity than he typically tolerates, is trading above what a conservative discounted-cash-flow estimate says it's worth right now, and trades rich relative to owner earnings, the real cash the business could pay out.
- ROE (TTM) > 11% ✓
- ROE (5yr avg) > 11% ✓
- Debt/Equity < 0.5 ✕
- Pretax margin > 15% ✓
- EPS growth (5yr) > 7% ✓
- Interest coverage > 5x ✓
- Trading below intrinsic value (DCF) ✕
- Price vs. owner earnings < 25x ✕
- Bonus: returning capital via buybacks FY2025
Lynch looked for growth stories that weren't overpriced for that growth, and AVGO falls short of his bar. In its favor: AVGO clears an even tighter PEG-under-1 bar he'd want for a stock growing this fast, and is generating real cash to back up a fast grower's higher price tag. Where it comes up short: AVGO is growing earnings outside the 20-50% band he considered sustainable for a fast grower - either not fast enough to earn the label, or a pace he'd flag as unlikely to hold up, is leaning on more debt than he liked a growth story to carry, and is priced above what he'd pay even for a company growing this quickly.
- PEG < 1 (stricter for fast growers) ✓
- EPS growth 20%-50% ✕
- Debt/Equity < 0.5 ✕
- P/E < 40 ✕
- Price/FCF < 40 ✓
Quantitative approximations of each investor's documented approach, not endorsed by either investor or their estates - commentary, not this site's actual ranking criteria. Buffett never published a numeric checklist: only 2 of his 8 checks here trace to his own documented concepts ("owner earnings," from his 1986 shareholder letter, and "price is what you pay, value is what you get," his case against fixed P/E/P/B ceilings) - the other 6 (ROE, debt, margins, growth, interest coverage) use commonly-cited thresholds that are not numbers he himself published. The 8 hard filters below (plus the Munger check and Graham margin of safety) are this site's real, mechanical screen and are computed completely independently of the checklists above.
Berkshire Hathaway's own filing
Which of the 8 value filters does Broadcom pass?
- Market Cap > $25B $1.55T
- Trailing P/E < 25 40.53
- PEG Ratio < 1.5 0.70
- Price/Book < 8 15.56
- Price/Sales < 7 17.41
- EPS Growth YoY > -5% +214.4%
- vs 50-day MA (±12%) Not evaluated †
- vs 200-day MA (±12%) Not evaluated †
What is Broadcom's margin of safety?
-170% on 2026-10-07 → -130% on 2026-10-23 (5 weekly readings).
Where is Broadcom in its 52-week range?
What is the short interest in Broadcom?
54,197,605 shares short as of 2026-09-30 (FINRA settlement date). Reported twice a month, so this only changes roughly every two weeks, not daily.
What could go wrong with Broadcom? Munger's inversion check
"Invert, always invert." Instead of reasons to buy, these are reasons to hesitate, not a verdict, and not everything worth knowing about a business.
- Margin of safety, even in the bull case -36%
- Short interest under 5% of float 1.2%
- Passes most of the 6 fundamental filters 3/6 passed
- Price run-up backed by value, not just momentum +10% off 52wk low
- Debt/equity stable since 2016 0.62 → 0.80
Doesn't cover circle of competence, management quality, or accounting concerns: those need judgment, not data.
How much have Broadcom shareholders gained per year?
Earnings growth per share plus dividend.
An earnings-based proxy, not a stock-price total return - it doesn't capture multiple expansion/contraction or reinvested dividends. EPS from AVGO's own 10-K filings; dividend yield is the current trailing yield on today's price, from the same weekly fetch as the rest of this site.
What do Broadcom's 10-year financials show?
From AVGO's own 10-K filings (SEC EDGAR): up to the last 10 fiscal years. Press any year's bars for the exact figures.
A single trade isn't automatically bullish or bearish. Insiders sell for all kinds of personal reasons. Most recent filings for AVGO:
Frequently asked questions about Broadcom
What kind of company is Broadcom?
Broadcom designs chips for data-center networking, custom AI accelerators, broadband and wireless, and sells enterprise infrastructure software after buying VMware in 2023. Software is now a large share of its revenue and profit. Brands and businesses it owns include VMware, CA Technologies, Symantec Enterprise and Brocade. This site groups it with Semiconductors stocks.
Is Broadcom trading above or below its DCF value?
At $323.24, AVGO trades 130.5% above this site's neutral DCF value of $140.24 per share, a margin of safety of −130.5%. That DCF projects free cash flow for 10 years, with growth starting at 8% and fading to 2.5%, discounted at 10%; it is one set of assumptions, not a forecast. Test your own in the Intrinsic Value Calculator.
How many of this site's 8 value filters does Broadcom pass?
AVGO passes 3 of 8. It passes Market Cap > $25B ($1.55T), PEG Ratio < 1.5 (0.70) and EPS Growth YoY > -5% (+214.4%). It misses Trailing P/E < 25 (40.53), Price/Book < 8 (15.56) and Price/Sales < 7 (17.41). vs 50-day MA (±12%) and vs 200-day MA (±12%) were not evaluated, because the moving-average checks only run on stocks that clear the fundamentals first. The 8-filter list shows every stock that passes all of them.
Are Broadcom's reported earnings reliable?
This site's earnings-quality check rates AVGO Weak · 2 flags, 1 watch. Beneish M-score −2.08 (grey zone), mostly from receivables growing faster than sales · accruals −2.6% of assets · 152% of profit arrived as cash · stock comp 11.8% of revenue · share count +6.6% a year. From the latest 10-K (year to Nov 2025). Concerns: the Beneish M-score (on watch), stock-based compensation (flagged) and share dilution (flagged). The five checks are the Beneish M-score (manipulation risk), accruals, cash conversion, stock-based compensation and share dilution; the Earnings Quality Screener shows how each is graded.
How fast has Broadcom grown its revenue and profit?
From fiscal 2016 to fiscal 2025, AVGO's revenue grew from $13.2 billion to $63.9 billion, 19.1% a year. Net income went from −$1.9 billion to $23.1 billion, and its net profit margin from -14.1% to 36.2%. In fiscal 2025 it produced $26.9 billion of free cash flow (cash from operations minus capital spending), 42.1% of its revenue. All figures are from AVGO's own 10-K filings (SEC EDGAR) and are shown year by year in the 10-Year Financials section of the card above.
Which well-known investors own Broadcom?
Among the investors whose SEC 13F filings this site tracks, Ray Dalio (2.0% of the portfolio; trimmed the position), George Soros (1.0% of the portfolio; added to the position), Cathie Wood (1.0% of the portfolio; unchanged), David Tepper (0.8% of the portfolio; a new position) and Steve Cohen (0.6% of the portfolio; trimmed the position) held AVGO as of June 30, 2026. 13F filings cover only US-listed equities and arrive up to 45 days after the quarter ends, so they lag the real portfolios. See Superinvestors.
Where do these numbers come from?
- Financial statements: Broadcom's 10-K annual report for the year ended Nov 2, 2025, filed Dec 18, 2025 (filing index). Every earlier year in the 10-year financials comes from the company's older 10-K filings, all listed on SEC EDGAR.
- Prices and market data: quotes, P/E and analyst ratings from Finnhub; daily price history and the 52-week range from Twelve Data, both refreshed weekly. Short interest comes from FINRA, reported twice a month.
- How to check a figure: click any number in the card above to see its exact source, and read the Editorial Standards for every rule behind the checks.
About this Broadcom Inc analysis
This page shows every value-investing check the site runs on Broadcom Inc (AVGO) in one place: the 8 mechanical filters, the Buffett and Lynch checklists, a margin of safety from a disclosed DCF, earnings quality, shareholder yield and how it ranks against its sector peers. The numbers come from SEC filings and public market data, refreshed weekly, and the same rules apply to every stock on the stock list. See Editorial Standards for the sources and the rules, or run your own filters in the stock screener.