Broadcom Inc.
[AVGO]
NASDAQ
MVPro™ Score: 68/100
Next Earnings: 04 Jun 2026
[AVGO]
NASDAQ
MVPro™ Score: 68/100
Next Earnings: 04 Jun 2026
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| Capitalization (mln USD) | 1,576,918 |
| Revenue (mln USD) | 19,311 |
| EBITDA (mln USD) | 10,716 |
| Net Income (mln USD) | 7,349 |
| Net Margin | 38.06% |
| EPS Ratio (TTM, USD) | 5.11 |
| P/E Ratio (TTM) | 63.15 |
| P/S Ratio (TTM) | 24.23 |
| D/E Ratio | 1.13 |
| EV/EBITDA (TTM) | 46.95 |
| CAPEX (Q/Q) | 5.49% |
| Dividend Yield | 0.81% |
Revenue, EBITDA & Net Income
Company Overview
Broadcom Inc. is a global technology company with a history dating back to 1961, though it assumed its current identity after the 2016 merger of Avago Technologies and the original Broadcom Corporation. Headquartered in Palo Alto, California, the company has grown through both organic innovation and a series of strategic acquisitions. Hock Tan serves as Broadcom’s President and Chief Executive Officer, playing a key role.
Broadcom designs, develops, and supplies a wide range of semiconductor and infrastructure software solutions. Its core products include networking chips, wireless communication components, broadband modems, and enterprise software for cybersecurity, storage, and mainframe operations. Broadcom’s mission is to deliver category-leading semiconductor and infrastructure technologies that enable the connected world and enterprise innovation.
Operating across North America, Europe, and Asia, Broadcom serves customers in sectors such as telecommunications, data centres, industrial automation, and consumer electronics. The company is actively engaged in ESG efforts, with commitments to reducing greenhouse gas emissions, responsible sourcing of materials, and promoting diversity and inclusion in its workforce. With a focus on long-term value creation and operational efficiency, Broadcom continues to be a key player in advancing global connectivity and digital infrastructure.
🔴 P/E (Price to Earnings, TTM)
Price-to-earnings (P/E) ratio for the most recent quarter is 66.3, compared to 73.3 in the previous quarter, with a longer-term trend value of 63.7. This decline in the P/E ratio may indicate a shift in market sentiment, where investors are placing a lower premium on future earnings growth. A falling P/E ratio could be driven by slowing revenue growth, increased risk perception, or improved earnings performance that is outpacing stock price growth.
P/E Ratio
Source: MarketVectors.Pro, Broadcom Financial Reports (TTM)
P/E Ratio
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🟢 EPS (Earnings Per Share, TTM)
Broadcom's earnings per share (EPS) for the most recent quarter is 5.11 USD (+8.00%), compared to 4.73 USD in the previous quarter, with a longer-term trend value of 5.60 USD. This quarterly increase in EPS suggests improved profitability and operational efficiency.
EPS
Source: MarketVectors.Pro, Broadcom Financial Reports (TTM, USD)
EPS
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🔴 P/B (Price to Book)
Price-to-book (P/B) ratio for the most recent quarter stands at 20.72 (-0.6%), compared to 20.85 in the previous quarter, with a long-term trend value of 22.05. This decline in the P/B ratio may indicate a more conservative market stance on the company’s asset valuation, potentially influenced by shifting investor sentiment, changes in financial fundamentals, or broader economic conditions.
P/B Ratio
Source: MarketVectors.Pro, Broadcom Financial Reports
P/B Ratio
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🟢 EBIT
EBIT for Broadcom in the most recent quarter is 8,563 million USD, compared to 7,508 million USD in the previous quarter, with a long-term trend value of 9,469 million USD. This increase reflects improved operational performance and higher profitability, aligning with the long-term growth trajectory.
EBIT
Source: MarketVectors.Pro, Broadcom Financial Reports (million USD)
EBIT
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🟡 Risk Assessment
The following risk assessment identifies the main categories of risk facing Broadcom Inc., considering its global operations in the semiconductor and infrastructure software sectors.
Market Risk
Broadcom operates in highly competitive and rapidly evolving markets, where shifts in customer demand and technological disruption can significantly impact revenues. The semiconductor industry is particularly sensitive to economic cycles and global supply-demand imbalances. Dependence on a limited number of key clients also heightens exposure to customer concentration risk.
Financial Risk
While Broadcom maintains strong cash flows and a robust revenue base, its growth strategy has relied heavily on large-scale acquisitions, contributing to significant debt levels. Rising interest rates or changes in credit conditions could affect refinancing and borrowing costs. Currency fluctuations also pose risks, as a substantial portion of revenue is generated outside the United States.
Operational Risk
Broadcom’s global manufacturing and supply chain operations expose it to risks from component shortages, logistical disruptions, and geopolitical tensions. The integration of acquired companies presents challenges related to systems, cultures, and talent retention. Additionally, reliance on third-party foundries may limit the company’s control over production and quality.
Regulatory Risk
The company is subject to complex and evolving regulations, including export controls, antitrust scrutiny, and data protection laws across multiple jurisdictions. Recent government interventions in technology trade, particularly between the US and China, could limit market access or disrupt supply chains.
Overall Risk Assessment
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🟢 Piotroski F-Score Analysis
Piotroski F-Score analysis is a robust methodology designed to assess the financial strength and operational efficiency of companies, providing valuable insights for investment decision-making.
Source: MarketVectors.Pro, Broadcom Financial Reports (million USD)
| Previous TTM | Current TTM | Score | |
| Net Income | 10,073 | 24,972 | 1 |
| ROA | 5.98% | 14.88% | 1 |
| Net Operating Cash Flow | -2,557 | 4,867 | 1 |
| OCF > Net Income | 11,187 | 4,712 | 1 |
| Long-Term Debt | 265,609 | 250,363 | 1 |
| Current Ratio | 1 | 1.9 | 1 |
| New Shares Issued (mln) | 4,836 | 4,888 | 0 |
| Gross Margin | 64.70% | 67.82% | 1 |
| Total Asset Turnover Ratio | 0.32 | 0.41 | 1 |
| Piotroski F-Score | 8/9 |
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🟢 Altman Z-Score Analysis
Altman Z-Score is a widely recognised financial metric used to evaluate the risk of bankruptcy for companies. It is particularly relevant for assessing the creditworthiness of manufacturing and industrial companies but has also been adapted for other industries.
Source: MarketVectors.Pro, Broadcom Financial Reports
| Q4 25 | |||
| Altman Z-Score (TTM) | 12.45 | ||
| 0 | Distress | 1.8 | Grey | 2.99 | Safe | 4 |
Source: MarketVectors.Pro, Broadcom Financial Reports
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🟡 Key Assets Components
Source: MarketVectors.Pro, Broadcom Financial Reports (million USD)
As of last quarter the company reported total assets of 169,903 million USD, representing an increase of 2.7% compared to the previous year the same quarter 165,358 million USD. The largest contributor to this change in current assets was Receivables, which grew by 70.7% to 8,460 million USD from 4,955 million USD.
Assets
Source: MarketVectors.Pro, Broadcom Financial Reports (million USD)
| Q4 24 | Q4 25 | Change (%) | |
| Cash & Short-Term Inv | 9,307 | 14,174 | 52.29% |
| Inventory | 1,908 | 2,962 | 55.24% |
| Receivables | 4,955 | 8,460 | 70.74% |
| Total Current Assets | 20,990 | 32,062 | 52.75% |
| Property and Equipment | 2,465 | 2,599 | 5.44% |
| Goodwill, Intangibles | 136,454 | 128,103 | -6.12% |
| Other Long-Term Assets | 5,449 | 7,139 | 31.01% |
| Total Assets | 165,358 | 169,903 | 2.75% |
Assets
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🔴 Key Liabilities & Equity
Source: MarketVectors.Pro, Broadcom Financial Reports (million USD)
Total current liabilities decreased by 19.4%, indicating a reduction in short-term obligations. This change may affect the company's ability to manage its working capital efficiently. Long-term debt increased by 4.7%, suggesting a rise in long-term obligations. This shift could have implications for the Broadcom's financing costs and overall debt strategy.
Liabilities & Equity
Source: MarketVectors.Pro, Broadcom Financial Reports (million USD)
| Q4 24 | Q4 25 | Change (%) | |
| Accounts Payable | 1,905 | 2,112 | 10.87% |
| Accrued Expenses, Other | 575 | 627 | 9.04% |
| Total Current Liabilities | 20,910 | 16,859 | -19.37% |
| Long-term Lease | 22 | 12 | -45.45% |
| Long-term Debt | 60,926 | 63,805 | 4.73% |
| Total Liabilities | 95,569 | 90,031 | -5.79% |
| Shareholders’ Equity | 69,789 | 79,872 | 14.45% |
Liabilities & Equity
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🟢 Income Statement Analysis
Source: MarketVectors.Pro, Broadcom Financial Reports (million USD)
As of Q4 25, Broadcom reported a revenue of 19,311 million USD, marking an increase of 29.5% compared to the previous year to 14,916 million USD. Operating expenses rose to 4,594 million USD, increasing by 5.2% year-on-year from 4,368 million USD.
Revenue & Net Income
Source: MarketVectors.Pro, Broadcom Financial Reports (million USD)
| Q4 24 | Q4 25 | Change (%) | |
| Revenue | 14,916 | 19,311 | 29.47% |
| Operating Expenses | 4,368 | 4,594 | 5.17% |
| Operating Income | 6,260 | 8,563 | 36.79% |
| Net Income | 5,503 | 7,349 | 33.55% |
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Revenue & Net Income
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🔴 Cash Flow Analysis
Source: MarketVectors.Pro, Broadcom Financial Reports (million USD)
The company’s cash flow performance over the year demonstrates varied trends across key categories. Net operating cash flows increased by 35.1% from 6,113 million USD to 8,260 million USD, reflecting stronger cash generation from core business activities. Net investing cash flows increased by 33.9% from -174 million USD to -115 million USD, indicating reduced expenditure on investments, potentially related to strategic initiatives.
Operating Cash Flow
Source: MarketVectors.Pro, Broadcom Financial Reports (million USD)
| Q4 24 | Q4 25 | Change (%) | |
| Net Operating Cash Flows | 6,113 | 8,260 | 35.12% |
| Net Investing Cash Flows | -174 | -115 | 33.91% |
| Net Financing Cash Flows | -5,980 | -10,149 | -69.72% |
| Net Cash Flow, Equivalents | -41 | -2,004 | -4787.80% |
Operating Cash Flow
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🟢 EBITDA
Broadcom's EBITDA for the most recent quarter is 10,716 milion USD (+8.6%), compared to 9,863 milion USD in the previous quarter, with a long-term trend value of 11,284 milion USD. This increase in EBITDA suggests improved operational efficiency and revenue growth, indicating stronger core business performance.
EBITDA
Source: MarketVectors.Pro, Broadcom Financial Reports (million USD)
EBITDA
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🟡 Net Income
Net income for the most recent quarter is 7,349 milion USD (-13.7%), compared to 8,518 milion USD in the previous quarter, with a long-term trend value of 8,220 milion USD. This decline in net income may indicate increased operational costs, lower revenue generation, or external market challenges affecting profitability.
Net Income
Source: MarketVectors.Pro, Broadcom Financial Reports (million USD)
Net Income
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🟢 ROE (Return on Equity, %) ★ Buffett's Key Metric
Broadcom's return on equity (ROE) for the most recent quarter is 31.3%, compared to 28.4% in the previous quarter, with a long-term trend value of 35.7%. This increase in ROE indicates improved profitability and more efficient use of shareholders' equity to generate earnings.
ROE Indicator
Source: MarketVectors.Pro, Broadcom Financial Reports (%)
ROE Indicator
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🟢 ROA (Return on Assets, %)
Return on assets (ROA) for the most recent quarter is 14.7%, compared to 13.5% in the previous quarter, with a long-term trend value of 16.4%. This increase in ROA indicates improved efficiency in utilizing company assets to generate profits. The higher return suggests stronger operational performance and effective resource allocation.
ROA Indicator
Source: MarketVectors.Pro, Broadcom Financial Reports (%)
ROA Indicator
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🟢 Operating Margin (%) ★ Buffett's Key Metric
Broadcom's operating margin for the most recent quarter is 44.3%, compared to 41.7% in the previous quarter, with a long-term trend value of 47.9%. This increase in operating margin reflects improved cost efficiency, higher revenue retention, or a stronger pricing strategy. The rise suggests that Broadcom is effectively managing its operational expenses while maintaining revenue growth.
Operating Margin
Source: MarketVectors.Pro, Broadcom Financial Reports (%)
Operating Margin
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🟡 Net Margin (%) ★ Buffett's Key Metric
Net margin for the most recent quarter is 38.1%, compared to 47.3% in the previous quarter, with a long-term trend value of 41.6%. This decline in net margin may indicate rising operational costs, pricing pressures, or changes in revenue mix that are affecting overall profitability. A lower net margin suggests that expenses have grown at a faster rate than revenue, potentially requiring adjustments in cost management or pricing strategy.
Net Margin
Source: MarketVectors.Pro, Broadcom Financial Reports (%)
Net Margin
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🔴 Long-Term Debt & EBITDA
The current long-term debt is 63,805 million USD, and EBITDA is 10,716 million USD. The long-term debt to EBITDA ratio for the most recent quarter is 595%, compared to 628% in the previous quarter, with a long-term trend value of 571%. This decline in the long-term debt to EBITDA ratio suggests an improvement in the company's ability to manage and service its long-term debt obligations. The lower ratio indicates stronger financial flexibility, potentially driven by higher earnings generation or reduced leverage.
Long-Term Debt to EBITDA Ratio
Source: MarketVectors.Pro, Broadcom Financial Reports (%)
Despite the decrease, the ratio remains above 400%, which may still indicate financial concerns that require careful monitoring. A declining trend in this ratio is typically a positive sign for investors, as it implies reduced financial risk and an improved capacity to meet long-term liabilities.
Long-Term Debt & EBITDA
Source: MarketVectors.Pro, Broadcom Financial Reports (million USD)
Long-Term Debt to EBITDA Ratio
Despite the decrease, the ratio remains above 400%, which may still indicate financial concerns that require careful monitoring. A declining trend in this ratio is typically a positive sign for investors, as it implies reduced financial risk and an improved capacity to meet long-term liabilities.
Long-Term Debt & EBITDA
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🟢 Long-Term Debt & Assets
The current long-term debt is 63,805 million USD, and total assets are 169,903 million USD, resulting in a debt ratio of 37.6%. This increase in the long-term debt-to-assets ratio may indicate a higher dependency on long-term debt or a decrease in total assets, potentially leading to increased financial risk. A rising ratio suggests that Broadcom may be taking on additional liabilities or experiencing challenges in maintaining asset growth.
Long-Term Debt to Assets Ratio
Source: MarketVectors.Pro, Broadcom Financial Reports (%)
The debt-to-assets ratio remains in the low-risk range <40%, which is a sign of a strong financial position. Investors and analysts will closely monitor future financial performance to determine whether this increase reflects temporary fluctuations or a more significant shift in the company's capital structure.
Long-Term Debt & Assets
Source: MarketVectors.Pro, Broadcom Financial Reports (million USD)
Long-Term Debt to Assets Ratio
The debt-to-assets ratio remains in the low-risk range <40%, which is a sign of a strong financial position. Investors and analysts will closely monitor future financial performance to determine whether this increase reflects temporary fluctuations or a more significant shift in the company's capital structure.
Long-Term Debt & Assets
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🟡 Long-Term Debt & Equity ★ Buffett's Key Metric
The current long-term debt is 63,805 million USD, while Total Equity stands at 79,872 million USD, resulting in a debt-to-equity ratio of 79.9%. This increase in the long-term debt-to-equity ratio may indicate a greater reliance on leverage, which could increase financial risk. A rising ratio suggests that Broadcom may be taking on additional debt obligations or experiencing challenges in equity growth, which could impact long-term financial stability.
Long-Term Debt to Equity Ratio
Source: MarketVectors.Pro, Broadcom Financial Reports (%)
The debt-to-equity ratio remains within the optimal range <150%, suggesting a well-balanced capital structure. Investors and analysts will closely monitor upcoming financial reports to determine whether this increase reflects temporary fluctuations or a more significant shift in financial strategy.
Long-Term Debt & Equity
Source: MarketVectors.Pro, Broadcom Financial Reports (million USD)
Long-Term Debt to Equity Ratio
The debt-to-equity ratio remains within the optimal range <150%, suggesting a well-balanced capital structure. Investors and analysts will closely monitor upcoming financial reports to determine whether this increase reflects temporary fluctuations or a more significant shift in financial strategy.
Long-Term Debt & Equity
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🟡 Equity to Assets
The current equity is 79,872 million USD, while total assets stand at 169,903 million USD, resulting in an equity-to-assets ratio of 47.0%. This decline in the equity-to-assets ratio may signal increased financial leverage or a reduction in equity levels. A falling ratio suggests that Broadcom may be increasing its reliance on debt financing or facing equity dilution, which could affect long-term financial resilience.
Equity to Assets Ratio
Source: MarketVectors.Pro, Broadcom Financial Reports (%)
The equity-to-assets ratio remains in the healthy above the 40%, demonstrating a well-balanced financial structure. Investors and analysts will closely monitor future capital allocation strategies to determine whether this decrease is a short-term fluctuation or a longer-term structural change.
Equity & Assets
Source: MarketVectors.Pro, Broadcom Financial Reports (million USD)
Equity to Assets Ratio
The equity-to-assets ratio remains in the healthy above the 40%, demonstrating a well-balanced financial structure. Investors and analysts will closely monitor future capital allocation strategies to determine whether this decrease is a short-term fluctuation or a longer-term structural change.
Equity & Assets
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🟡 Quick Ratio
The quick ratio for Broadcom is 1.73, compared to 1.58 in the previous quarter, with a long-term trend value of 1.65. This increase in the quick ratio suggests improved short-term liquidity, indicating that the company has a stronger ability to cover its immediate liabilities with liquid assets. The current level is above 1.0, which is considered financially healthy, demonstrating that the company maintains a solid liquidity position.
Quick Ratio
Source: MarketVectors.Pro, Broadcom Financial Reports
Quick Ratio
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🟢 Current Ratio
The current ratio for Broadcom is 1.90, compared to 1.71 in the previous quarter, with a long-term trend value of 1.82. This increase in the current ratio suggests improved liquidity, indicating that the company has a stronger ability to cover its short-term liabilities with current assets. Although the ratio has increased, it remains within the optimal range of 1.0–2.0, ensuring a healthy balance between liquidity and operational efficiency.
Current Ratio
Source: MarketVectors.Pro, Broadcom Financial Reports
Current Ratio
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🟢 Net Working Capital
The net working capital (NWC) for Broadcom in the most recent quarter is 15,203 million USD, compared to 13,059 million USD in the previous quarter, with a long-term trend value of 84,898 million USD.
Net Working Capital
Source: MarketVectors.Pro, Broadcom Financial Reports (million USD)
Net Working Capital
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🟢 Inventory Turnover Ratio
The inventory turnover ratio for Broadcom in the most recent quarter is 7.42, compared to 6.95 in the previous quarter. This increase in inventory turnover indicates that Broadcom is selling goods more rapidly, suggesting strong demand, efficient inventory management, and optimized supply chain processes. The turnover ratio is above the 6.0, reflecting high inventory efficiency and fast-moving stock, which minimizes storage costs and obsolescence risks.
Inventory Turnover Ratio
Source: MarketVectors.Pro, Broadcom Financial Reports
Inventory Turnover Ratio
🔴 Asset Turnover Ratio
The assets turnover ratio for Broadcom in the most recent quarter is 0.40, compared to 0.37 in the previous quarter. This increase in the assets turnover ratio indicates that Broadcom is utilizing its assets more efficiently to generate revenue. A rising ratio often reflects improved sales performance, better assets utilization, or operational efficiency. The ratio has fallen below the 1.0, suggesting that Broadcom may have a high level of assets relative to revenue generation. This could indicate underutilized resources or the need for improved asset efficiency.
Assets Turnover Ratio
Source: MarketVectors.Pro, Broadcom Financial Reports
Assets Turnover Ratio
🔴 Book Value / Share
The book value per share (BVPS) is a key valuation metric that represents the equity value per outstanding share. Calculated by dividing total book value by the number of shares, it helps assess whether a stock trades above or below its book value.
Source: MarketVectors.Pro, Broadcom Financial Reports (USD)
Book Value per Share Valuation
Source: MarketVectors.Pro, Broadcom Financial Reports (USD, generated on 15 March 2026)
| Q4 24 | Q4 25 | Change (%) | |
| Book Value / Share | 14.43 | 16.34 | 13.24 % |
Book Value per Share Valuation
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🔴 Graham Method
The intrinsic value of Broadcom’s stock is calculated using Benjamin Graham’s formula, which takes into account the current earnings per share (EPS) and an assumed growth rate (g), providing a simplified yet insightful perspective on a company’s value.
Benjamin Graham Valuation
Source: MarketVectors.Pro, Broadcom Financial Reports (USD, generated on 15 March 2026)
Benjamin Graham Valuation
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🟡 Discounted Cash Flow ★ Buffett's Key Metric
The discounted cash flow (DCF) method is used to estimate Broadcom’s intrinsic value by projecting future cash flows and discounting them to their present value. This approach considers the company’s potential to generate cash flows in the future, taking into account the time value of money and associated risks.
The terminal value represents the value of Broadcom’s cash flows beyond the five-year forecast horizon. It is calculated using the Gordon Growth Model, assuming a perpetual growth rate of 4.0% and WACC of 9.6%. The calculated terminal value is 2,519,772 million USD.
Total Intrinsic Value Calculations
Source: MarketVectors.Pro, Broadcom Financial Reports (million USD)
Assuming 4,888 million shares outstanding, the intrinsic value per share is approximately 379.49 USD. The current market price of Broadcom’s stock is 322.61 USD. Discounted cash flow valuation indicates that the stock is 15.0% undervalued, trading below its intrinsic value.
Discounted Cash Flow Valuation
Source: MarketVectors.Pro, Broadcom Financial Reports (USD, generated on 15 March 2026)
| Value | |
| Present Value of FCFs | 257,991 |
| Present Value of Terminal Value | 1,596,979 |
| Total Intrinsic Value | 1,854,970 |
Discounted Cash Flow Valuation
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🟢 Assets Correlation
The Pearson correlation analysis for Broadcom examines the relationship between share price and key financial indicators. Gross profit has a correlation of 0.93, which indicates a strong relationship, meaning profitability is a key driver of stock price movements. Operating income is correlated at 0.91, highlighting a strong relationship between operating profitability and market valuation.
Source: MarketVectors.Pro, Broadcom Financial Reports
Current liabilities are correlated at 0.86, implying that short-term obligations are closely monitored by investors, influencing stock valuation. Total assets have a correlation of 0.85, confirming a strong relationship between asset growth and market performance.
Key Financial Indicators Growth Dynamics
Source: MarketVectors.Pro, Broadcom Financial Reports, Index=100 on Q2 11
| Pearson Correlation | |
| Share Price | 1 |
| Gross Profit | 0.93 |
| Operating Income | 0.91 |
| Current Liabilities | 0.86 |
| Total Assets | 0.85 |
Key Financial Indicators Growth Dynamics
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🟡 FCF Margin Scenarios
• Optimistic Scenario: 55%, driven by operational efficiencies and cost optimisation.
• Base Case: 42% of revenue, consistent with historical trends.
• Pessimistic Scenario: 30%, reflecting higher operating and labour costs. Impact of Changes in FCF Margin
Source: MarketVectors.Pro, Broadcom Financial Reports (million USD)
An approximately 13-percentage-point increase in the FCF margin to 55%, results in an additional 8,644 milion USD in FCF, highlighting the critical role of operational efficiency. Conversely, a decrease to 30% reduces FCF by 8,426 milion USD, illustrating the significant impact of profitability on cash flow generation.
Projected FCF Margin Scenarios Source: MarketVectors.Pro, Broadcom Financial Reports (million USD)
• Base Case: 42% of revenue, consistent with historical trends.
• Pessimistic Scenario: 30%, reflecting higher operating and labour costs. Impact of Changes in FCF Margin
| FCF Margin (%) | Revenue TTM | FCF TTM | Difference | |
| Optimistic | 55% | 68,282 | 37,555 | 8,644 |
| Base Case | 42% | 68,282 | 28,911 | – |
| Pessimistic | 30% | 68,282 | 20,485 | -8,426 |
Projected FCF Margin Scenarios Source: MarketVectors.Pro, Broadcom Financial Reports (million USD)
🟡 Operating Costs Scenarios
• Optimistic Scenario: 58%, reflecting enhanced efficiency and lower costs.
• Base Case: 59% of revenue, aligned with historical trends and cost structures.
• Pessimistic Scenario: 61%, driven by rising wages and increased energy costs. Impact of Changes in FCF Margin
Source: MarketVectors.Pro, Broadcom Financial Reports (million USD)
Reducing operational costs to 58% of revenue leads to a 891 milion USD increase in operating profit, emphasising the significance of cost control in enhancing margins. Increasing costs to 61% of revenue results in a 1,157 milion USD decline in operating profit, highlighting the sensitivity of profitability to rising expenses.
Projected Operating Costs Scenarios Source: MarketVectors.Pro, Broadcom Financial Reports (million USD)
• Base Case: 59% of revenue, aligned with historical trends and cost structures.
• Pessimistic Scenario: 61%, driven by rising wages and increased energy costs. Impact of Changes in FCF Margin
| Operating Costs (%) | Revenue TTM | Operating Profit | Difference | |
| Optimistic | 58% | 68,282 | 28,678 | 891 |
| Base Case | 59% | 68,282 | 27,787 | – |
| Pessimistic | 61% | 68,282 | 26,630 | -1,157 |
Projected Operating Costs Scenarios Source: MarketVectors.Pro, Broadcom Financial Reports (million USD)
🟡 Revenue Growth Scenarios
Optimistic Scenario: Projected to grow by 27% annually, driven by:
• Robust macroeconomic conditions.
• Strong industry growth with minimal disruptions.
• Favorable regulatory and competitive environment. Base Case: Projected to grow by 23% annually, driven by: • Stable macroeconomic conditions.
• Balanced market growth with manageable risks.
• Limited external disruptions from regulation or supply chains. Pessimistic Scenario: Projected to grow by 18% annually, driven by: • Global economic uncertainty and potential downturn.
• Increased competition and rising operational costs.
• Regulatory and supply chain challenges impacting business operations.
Source: MarketVectors.Pro, Broadcom Financial Reports (million USD, TTM)
The projected revenue for the next twelve months varies depending on the scenario. Under the optimistic scenario, revenue is expected to increase by 27% to 86,773 million USD, reflecting strong market growth and operational efficiency. In the base case scenario, revenue is forecasted to grow by 23% to 83,691 million USD, assuming stable economic conditions and consistent business expansion. However, under the pessimistic scenario, revenue is projected to increase by 18% to 80,610 million USD, reflecting potential economic slowdowns or adverse market conditions.
Projected Revenues Source: MarketVectors.Pro, Broadcom Financial Reports (million USD)
The variation between projected scenarios highlights the Broadcom's ability to perform across a range of market conditions. The growth even in the pessimistic case reflects a degree of resilience and suggests a strong underlying business model. This outlook supports confidence in management’s ability to navigate uncertainty while sustaining forward momentum. Scenario analysis enhances strategic visibility, helping stakeholders understand the potential bandwidth of future results.
• Strong industry growth with minimal disruptions.
• Favorable regulatory and competitive environment. Base Case: Projected to grow by 23% annually, driven by: • Stable macroeconomic conditions.
• Balanced market growth with manageable risks.
• Limited external disruptions from regulation or supply chains. Pessimistic Scenario: Projected to grow by 18% annually, driven by: • Global economic uncertainty and potential downturn.
• Increased competition and rising operational costs.
• Regulatory and supply chain challenges impacting business operations.
| Revenue | Net Income | Revenue (Next) | Net Income (Next) | |
| Optimistic | 68,282 | 24,972 | 86,773 | 31,735 |
| Base Case | 68,282 | 24,972 | 83,691 | 30,608 |
| Pessimistic | 68,282 | 24,972 | 80,610 | 29,480 |
Projected Revenues Source: MarketVectors.Pro, Broadcom Financial Reports (million USD)
The variation between projected scenarios highlights the Broadcom's ability to perform across a range of market conditions. The growth even in the pessimistic case reflects a degree of resilience and suggests a strong underlying business model. This outlook supports confidence in management’s ability to navigate uncertainty while sustaining forward momentum. Scenario analysis enhances strategic visibility, helping stakeholders understand the potential bandwidth of future results.
🟡 Net Income Growth Scenarios
The projected net income for the next twelve months varies depending on the scenario. Under the optimistic scenario, net income is expected to increase by 27% to 31,735 million USD, reflecting improved profitability and strong financial performance. In the base case scenario, net income is forecasted to grow by 23% to 30,608 million USD, assuming stable market conditions and effective cost management. However, under the pessimistic scenario, net income is projected to increase by 18% to 29,480 million USD, reflecting potential challenges such as higher operational costs or slowing revenue growth.
Projected Net Income Source: MarketVectors.Pro, Broadcom Financial Reports (million USD)
The projected resilience in net income across all scenarios suggests a stable underlying profitability profile. Even under adverse assumptions, the Broadcom is expected to maintain earnings growth, indicating effective cost controls and strong core operations. This consistency can help support valuation multiples and reduce perceived investment risk. Scenario modeling enhances transparency and strengthens the credibility of financial forecasting in the eyes of stakeholders.
Projected Net Income Source: MarketVectors.Pro, Broadcom Financial Reports (million USD)
The projected resilience in net income across all scenarios suggests a stable underlying profitability profile. Even under adverse assumptions, the Broadcom is expected to maintain earnings growth, indicating effective cost controls and strong core operations. This consistency can help support valuation multiples and reduce perceived investment risk. Scenario modeling enhances transparency and strengthens the credibility of financial forecasting in the eyes of stakeholders.
🟢 Financial Performance Overview
Broadcom demonstrated stronger financial performance in the most recent period, reflecting strong revenue growth, operational efficiency, and profitability improvements revenue increased by 29.5% year-over-year, reaching 19,311 million USD, supported by strong sales performance across all key markets. At the same time, EBITDA grew by 27.1% year-over-year, totaling 10,716 million USD, driven by cost optimization and higher-margin business segments.
Revenue & Net Income
Source: MarketVectors.Pro, Broadcom Financial Reports (million USD)
Notably, net income surged by 33.5% year-over-year, reaching 7,349 million USD, negatively impacting Broadcom's net margin, which expanded to 38.1%. This growth reflects effective expense control and revenue expansion, strengthening the company’s bottom-line performance.
Revenue & Net Income
Notably, net income surged by 33.5% year-over-year, reaching 7,349 million USD, negatively impacting Broadcom's net margin, which expanded to 38.1%. This growth reflects effective expense control and revenue expansion, strengthening the company’s bottom-line performance.
Key Performance Indicators (KPIs)
Source: MarketVectors.Pro, Broadcom Financial Reports (YoY)
Valuation & Market Position
Broadcom’s valuation metrics indicate a strengthened financial standing. The EV to EBITDA (TTM) ratio currently stands at 46.95, decreasing from 51.13, reflecting a dual shift – rising operational performance and declining market valuation. This suggests a high enterprise valuation relative to earnings.
EV to EBITDA Ratio
Source: MarketVectors.Pro, Broadcom Financial Reports (TTM)
The EV to EBITDA trendline illustrates Broadcom’s valuation trajectory, with a declining enterprise value despite improving earnings, possibly signaling undervaluation or market pessimism.
Source: MarketVectors.Pro, Broadcom Financial Reports (TTM)
Meanwhile, the P/E (Price to Earnings) ratio has declined to 66.3, down from 77.7 a year ago, potentially signaling a more balanced market outlook on Broadcom’s earnings potential. The P/S (Price to Sales) ratio has risen to 24.23, compared to 17.60 a year ago, reinforcing Broadcom’s higher market capitalization relative to revenue.
| Change (%) | |
| Revenue Growth | 29.5% |
| EBITDA Growth | 27.1% |
| Net Income Growth | 33.5% |
| Net Margin | 38.1% |
| EPS | 145.3% |
EV to EBITDA Ratio
The EV to EBITDA trendline illustrates Broadcom’s valuation trajectory, with a declining enterprise value despite improving earnings, possibly signaling undervaluation or market pessimism.
| Ratio (TTM) | |
| EV/EBITDA | 46.95 |
| P/E Ratio | 63.15 |
| P/S Ratio | 24.23 |
Cash Flow & Liquidity ★ Buffett's Key Metric
Broadcom maintains a strengthened cash flow position, highlighting improved liquidity and prudent financial management. The increase in cash flow suggests enhanced operational efficiency and a stronger ability to meet financial obligations.
• Free Cash Flow (FCF) – totaled 8,010 million USD, marking an improvement in liquidity.
• Net Operating Cash Flow – declined by 290.3% year-over-year, reaching 4,867 million USD, suggesting weaker cash inflows from operating activities.
• Long-term debt – decreased by 5.7%, which may lead to higher financial leverage and increased interest obligations.
Broadcom’s ability to generate substantial cash flow while reducing debt reinforces its financial flexibility, allowing for potential future investments in innovation, logistics, and technology expansion.
Free Cash Flow
Source: MarketVectors.Pro, Broadcom Financial Reports (million USD)
Broadcom's financial performance in the most recent quarter shows that EBITDA reached 10,716 million USD, reflecting improved operational efficiency and earnings growth. The company's return on equity (ROE) is 31.3%, suggesting enhanced capital utilization and stronger profitability. The long-term debt-to-equity ratio stands at 79.9%, which may reflect rising leverage and a shift toward debt-based financing. The quick ratio is 1.73, showing improved liquidity and better short-term risk coverage. The EV/EBITDA ratio is currently 46.95x, reflecting a balanced or attractive valuation level relative to earnings. Overall, Broadcom’s financial health remains strong, with consistent revenue expansion, cost efficiency improvements, and strong liquidity. Meanwhile, the P/E ratio is declining, while Broadcom’s long-term prospects remain positive.
Free Cash Flow
Broadcom's financial performance in the most recent quarter shows that EBITDA reached 10,716 million USD, reflecting improved operational efficiency and earnings growth. The company's return on equity (ROE) is 31.3%, suggesting enhanced capital utilization and stronger profitability. The long-term debt-to-equity ratio stands at 79.9%, which may reflect rising leverage and a shift toward debt-based financing. The quick ratio is 1.73, showing improved liquidity and better short-term risk coverage. The EV/EBITDA ratio is currently 46.95x, reflecting a balanced or attractive valuation level relative to earnings. Overall, Broadcom’s financial health remains strong, with consistent revenue expansion, cost efficiency improvements, and strong liquidity. Meanwhile, the P/E ratio is declining, while Broadcom’s long-term prospects remain positive.
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