Broadcom Inc
🇺🇸 AVGO · NYSE/NASDAQ · US11135F1012
Technology
USD 425.19 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
82.9
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: 425.19 ÷ 5.13 = 82.9
TTM period through: 2026-01-31
Forward P/E (estimated): 38.6
Based on analyst estimates
Reference: Provider P/E (Trailing): 81.3
Yield (Fwd)
0.61%
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): 0.60%
Div. Growth (5Y CAGR)
11.8%
Growth Streak
9 yrs
Consecutive years of increase
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
55.9x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Broadcom is a highly profitable, dominant semiconductor and infrastructure software provider, but it represents a structural mismatch for conservative dividend investors. The 0.60% yield falls drastically below income requirements, and the technology sector classification with an 82.9x P/E offers zero margin of safety. Not recommended for new positions in a dividend value strategy, as better opportunities exist in stable, essential service sectors offering higher yields.
Sector Context
Broadcom is a dominant global designer, developer, and supplier of a broad range of semiconductor and infrastructure software solutions. While the company possesses deep competitive moats and generates massive cash flows, the technology sector is generally excluded from conservative dividend value strategies due to the risks of rapid technological obsolescence and lack of essential service stability.
Temporary Opportunity Identified
Recent GAAP net loss of $1.87B driven entirely by a one-time, non-cash tax provision of $4.5B related to an IP rights transfer, while underlying non-GAAP earnings and cash flow remained very strong.
📊 Strategy Analysis
- • Exceptional dividend growth history with a 10-year CAGR of 31.5% and strong free cash flow coverage (Cash Flow Payout 38.6%).
- • Highly profitable business model with 57.0% EBITDA margins and robust top-line growth.
- • Healthy balance sheet with Net Debt/EBITDA of 1.33x, indicating well-managed leverage.
⚠ What to Watch
- • Operates in the Technology sector, which is explicitly avoided by the strategy due to rapid obsolescence risks and lack of essential service characteristics.
- • Current dividend yield of 0.60% falls drastically short of the strategy's 3% minimum requirement.
- • Valuation multiples are prohibitively expensive for a value strategy, with a trailing P/E of 82.9x offering no 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: 2026-05-16
Disclaimer: This information is for educational purposes only. Not financial advice.