Broadcom Inc
🇺🇸 AVGO · NYSE/NASDAQ · US11135F1012
Technology
USD 314.55 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
61.4
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 314.55 ÷ 5.13 = 61.4
TTM period through: 2026-01-31
Forward P/E (estimated): 28.2
Based on analyst estimates
Reference: Provider P/E (Trailing): 61.3
Yield (Fwd)
0.83%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 0.79%
Net Debt/EBITDA (TTM)
1.3x
Latest quarter: 4.8x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2026-01-31
Latest quarter (2026-01-31): 4.8x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
50.7%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 45.9%
Cash Flow Payout (TTM): 38.6%
FCF Coverage (TTM): 2.52x
ROE
33.4%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
41.2x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Broadcom is a dominant global semiconductor and infrastructure software provider with outstanding fundamental growth and profitability. However, its technology sector classification, minimal 0.79% dividend yield, and stretched valuation multiples make it fundamentally incompatible with our conservative 'forever' dividend strategy. Not recommended for new positions given the severe strategy mismatch and lack of meaningful income generation.
Sector Context
Broadcom is a global technology leader designing, developing, and supplying a broad range of semiconductor and infrastructure software solutions, heavily exposed to AI and data center growth. However, the Technology sector is explicitly avoided in our conservative dividend strategy due to rapid product obsolescence, cyclical demand shifts, and the lack of essential service predictability.
Temporary Opportunity Identified
Recent GAAP net loss driven by a one-time, $4.5 billion non-cash tax provision related to an intra-group IP transfer, which artificially inflates the TTM P/E ratio.
📊 Strategy Analysis
- • Outstanding long-term fundamental growth and exceptional profitability margins (EBITDA margin of 57%).
- • Strong free cash flow generation provides robust 2.5x coverage for the current dividend.
- • Conservative leverage profile with Net Debt/EBITDA of 1.33x, demonstrating successful deleveraging post-acquisitions.
⚠ What to Watch
- • Technology sector classification carries rapid obsolescence risk, making it a severe mismatch for our essential services dividend strategy.
- • Current dividend yield of 0.79% falls drastically short of the strategy's 3% minimum requirement for income generation.
- • Valuation multiples remain prohibitive with a forward P/E of 28.17x and TTM P/E of 61.36x, offering zero margin of safety.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-04
Disclaimer: This information is for educational purposes only. Not financial advice.