Broadcom Inc. (AVGO) Stock Analysis — Fair Value, Risk & Moat Rating
NMS · Technology · Semiconductors
Is Broadcom Inc. a safe investment right now?
Broadcom Inc.'s Altman Z-Score of 14.43 places it in the safe zone. Our fair value estimate is $282.80 (Overvalued). Moat rating: 3.4/5 stars.
Could Broadcom Inc. go bankrupt? Altman Z-Score analysis
Z-Score of 14.43 is above 3.0, indicating the company is financially healthy by this metric.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives AVGO's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | 0.0763 | 1.2 | 0.09 |
| B · Retained Earnings / Total Assets | RE / TA | 0.0571 | 1.4 | 0.08 |
| C · EBIT / Total Assets | EBIT / TA | 0.1516 | 3.3 | 0.5 |
| D · Market Cap / Total Liabilities | MCap / TL | 22.3151 | 0.6 | 13.39 |
| E · Revenue / Total Assets | Rev / TA | 0.3734 | 1.0 | 0.37 |
How has AVGO's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 25.1 | Safe |
| 2023 | 26.12 | Safe |
| 2024 | 12.88 | Safe |
| 2025 | 14.43 | Safe |
Source: Calculated from AVGO's latest 10-K filing on SEC EDGAR.
What is Broadcom Inc. actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $7.07 | Proprietary blend of reported actuals (1Q actual) + analyst consensus, weighted by α |
| Last Year EPS | $4.77 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $11.43 | 42 analysts consensus |
| Trailing P/E | 82.7x | Current market pricing |
| Fair P/E (β discount) | 40.0x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Accelerating | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $475.49 (42 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does Broadcom Inc. have a durable competitive advantage?
Moat rating: 3.4/5.
What makes up AVGO's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 4/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 3/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is AVGO's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | 22.8% | — |
| 2023 | 26.5% | Rising |
| 2024 | 10.3% | Declining |
| 2025 | 17.7% | Rising |
Source: ROIC calculated from SEC EDGAR filings.
Is Broadcom Inc.'s dividend safe?
Can Broadcom Inc. afford its dividend?
Payout ratio is 47.2%. FCF covers the dividend 2.3x. 17 consecutive years of payments.
Broadcom Inc.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $63.9B | $51.6B | $33.2B | Rising |
| Net Income | $23.1B | $5.9B | $11.5B | Rising |
| Free Cash Flow | $26.9B | $19.4B | $16.3B | Rising |
| Gross Margin | 67.8% | 63.0% | 66.5% | Stable |
Recent events that affect our AVGO analysis
AVGO earnings report scheduled
Upcoming report. Consensus EPS estimate: $2.39. Revenue estimate: $22.06B. Our current Fair Value: $282.80 — a significant beat or miss could shift this estimate.
AVGO analyst consensus: 94% bullish (44 of 47 analysts)
7 Strong Buy, 37 Buy, 3 Hold, 0 Sell, 0 Strong Sell. Consensus target: $475.49 (12.5% upside). Compare with our independent Fair Value: $282.80.
AVGO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
AVGO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
AVGO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
AVGO paid $0.6500/share dividend
Dividend Safety Grade: A. Payout ratio: 47.2%.
AVGO filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
AVGO beat EPS estimates by 1.3%
Reported EPS: $2.05 vs estimate $2.02. Earnings strength supports our Fair Value of $282.80 (33.1% below current price).
AVGO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
AVGO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
AVGO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
AVGO paid $0.6500/share dividend
Dividend Safety Grade: A. Payout ratio: 47.2%.
AVGO filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
AVGO beat EPS estimates by 4.4%
Reported EPS: $1.95 vs estimate $1.87. Earnings strength supports our Fair Value of $282.80 (33.1% below current price).
AVGO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
AVGO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
AVGO paid $0.5900/share dividend
Dividend Safety Grade: A. Payout ratio: 47.2%.
AVGO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
AVGO filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
AVGO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
AVGO beat EPS estimates by 1.6%
Reported EPS: $1.69 vs estimate $1.66. Earnings strength supports our Fair Value of $282.80 (33.1% below current price).
AVGO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
AVGO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
AVGO paid $0.5900/share dividend
Dividend Safety Grade: A. Payout ratio: 47.2%.
AVGO filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
AVGO beat EPS estimates by 0.6%
Reported EPS: $1.58 vs estimate $1.57. Earnings strength supports our Fair Value of $282.80 (33.1% below current price).
AVGO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
AVGO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
AVGO paid $0.5900/share dividend
Dividend Safety Grade: A. Payout ratio: 47.2%.
AVGO filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
AVGO beat EPS estimates by 6.1%
Reported EPS: $1.60 vs estimate $1.51. Earnings strength supports our Fair Value of $282.80 (33.1% below current price).
AVGO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
AVGO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
AVGO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
Common questions about Broadcom Inc.
What is Broadcom Inc. stock price today?
Broadcom Inc. (AVGO) stock price is $422.65 as of the latest market close, traded on the NASDAQ exchange.
What does Broadcom Inc. do?
Broadcom Inc. designs, develops, and supplies various semiconductor devices and infrastructure software solutions internationally. It operates in two segments: Semiconductor Solutions and Infrastructure Software.
What is Broadcom Inc. market cap?
Broadcom Inc. has a market capitalization of $2.00T, classifying it as a mega-cap stock in the Technology sector.
What sector and industry is AVGO in?
Broadcom Inc. operates in the Technology sector, specifically within the Semiconductors industry. It trades on the NASDAQ under the ticker symbol AVGO.
Is AVGO stock overvalued or undervalued?
Based on our valuation model, Broadcom Inc. trades 49.5% above our fair value estimate — potentially overvalued.
- FairValueLabs Fair Value: $282.80
- Current Price: $422.65
- Valuation Zone: Overvalued
What is AVGO stock forecast and analyst target price?
Based on 42 Wall Street analysts, the consensus price target for Broadcom Inc. is $475.49, implying upside of 12.5% from the current price.
- Analyst High Target: $630.00
- Analyst Low Target: $360.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is Broadcom Inc. revenue and earnings growing?
Here are the analyst consensus growth estimates for Broadcom Inc.:
- Revenue growth (current year est.): 63.4%
- EPS growth (current year est.): 67.5%
- Revenue growth (next year est.): 51.8%
- EPS growth (next year est.): 58.6%
What are Broadcom Inc.'s key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $63.9B | Rising |
| Net Income | $23.1B | Rising |
| Free Cash Flow | $26.9B | Rising |
| Gross Margin | 67.8% | Stable |
What is AVGO's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 82.7x
- Forward P/E (next 12 months est.): 23.3x
- FairValueLabs Fair P/E: 40.0x
How volatile is AVGO stock?
Broadcom Inc. has a beta of 1.25, meaning it is somewhat more volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does Broadcom Inc. have?
Broadcom Inc.'s balance sheet shows:
- Total Cash: $14.17B
- Total Debt: $66.06B
- Net Cash Position: $-51.88B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is Broadcom Inc.'s free cash flow?
Broadcom Inc. generated $25.50B in trailing twelve-month free cash flow (from $29.68B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does Broadcom Inc. pay a dividend, and is it safe?
Yes, Broadcom Inc. pays a regular dividend. Here are the key metrics:
- Dividend Yield: 0.6%
- Payout Ratio: 47.2%
- Consecutive Years Paid: 17
- 5-Year Dividend Growth: -15.3%
- FairValueLabs Safety Grade: A
Is Broadcom Inc. at risk of going bankrupt?
Broadcom Inc.'s Altman Z-Score is 14.43, placing it in the safe zone (above 3.0) — bankruptcy risk is low. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does Broadcom Inc. have a durable competitive advantage?
Broadcom Inc. scores 3.4/5 stars (Narrow moat) in our moat analysis:
- ROIC Stability: 4/5
- Gross Margin Trend: 3/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is AVGO's return on equity (ROE)?
Broadcom Inc.'s return on equity is 33.4%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy AVGO stock?
AVGO shares can be purchased through any brokerage account that provides access to the NASDAQ. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol AVGO
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is AVGO a value stock or speculative?
FairValueLabs classifies Broadcom Inc. as Value-Speculation. It has some value characteristics but carries elevated risk factors that make it speculative. Extra due diligence is recommended.
Who is the CEO of Broadcom Inc.?
The current CEO of Broadcom Inc. is Mr. Hock E. Tan.
What is AVGO's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $5.11
- Forward EPS (next 12 months est.): $18.12
- Analyst consensus EPS (this year): $11.43
- Analyst consensus EPS (next year): $18.12
Other Technology companies analyzed by FairValueLabs
FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
AVGO analysis methodology: How we calculate fair value, Z-Scores, and moat ratings