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Broadcom Inc
🇺🇸 AVGO · NYSE/NASDAQ
Technology
Price at analysis: USD 336.54 Current price: USD 345.29 * updated every night
Scores
Key Metrics
Powered by EODHDP/E (TTM)
70.6
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: 336.54 ÷ 4.77 = 70.6
TTM period through: 2026-07-31
Forward P/E (estimated): 19.4
Based on analyst estimates
Reference: Provider P/E (Trailing): 45.4
Net Debt/EBITDA (TTM)
1.0x
Latest quarter: 1.9x
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: 2026-07-31
Latest quarter (2026-07-31): 1.9x
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).
ROE
44.2%
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
33.9x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
0.63%
TTM: 0.75%
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.
Forward Yield (estimated): 0.63%
Trailing Yield (TTM, last 12 months): 0.75%
Payout Ratio (Fwd)
54.6%
TTM: 48.2%
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 (Fwd): 54.6%
Payout (TTM): 48.2%
Cash Flow Payout (TTM): 40.5%
FCF Coverage (TTM): 2.42x
Growth Streak
8 yrs
Consec. increases
Div. Growth (5Y)
12.6%
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Quarterly | — | 21 Sep 2027 | — | USD | 0.65 |
| Forecast* | Quarterly | — | 22 Jun 2027 | — | USD | 0.65 |
| Forecast* | Quarterly | — | 23 Mar 2027 | — | USD | 0.65 |
| Forecast* | Quarterly | — | 22 Dec 2026 | — | USD | 0.65 |
| Paid | Quarterly | 02 Sep 2026 | 21 Sep 2026 | 30 Sep 2026 | USD | 0.65 |
| Paid | Quarterly | 03 Jun 2026 | 22 Jun 2026 | 30 Jun 2026 | USD | 0.65 |
| Paid | Quarterly | 04 Mar 2026 | 23 Mar 2026 | 31 Mar 2026 | USD | 0.65 |
| Paid | Quarterly | 11 Dec 2025 | 22 Dec 2025 | 31 Dec 2025 | USD | 0.65 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
Broadcom is an elite technology compounder benefiting from immense AI tailwinds, generating massive free cash flow and sustaining aggressive dividend growth. However, its negligible 0.75% trailing yield and 70.62x trailing P/E structurally exclude it from a traditional DGI portfolio. Not recommended for new positions in strict income accounts, though existing growth-oriented holders should maintain.
Sector Context
Broadcom operates in the technology/semiconductor sector, providing critical networking hardware, custom AI accelerators, and enterprise software (VMware). While it holds a highly entrenched oligopoly position, the tech sector and its <1% yield trigger significant strategy-fit penalties for pure dividend-income portfolios.
📊 Strategy Analysis
- • Elite profitability profile with a 44.25% ROE and massive EBITDA margins of 54.34%
- • Highly sustainable dividend growth supported by a conservative 40.46% cash flow payout and 2.42x FCF coverage
- • Strong balance sheet with Net Debt/EBITDA at a manageable 1.02x, effectively deleveraging post-VMware acquisition
⚠ What to Watch
- • Structurally incompatible with a traditional DGI strategy due to a negligible 0.77% forward dividend yield
- • Excessive trailing valuation at 70.62x P/E, offering zero margin of safety for income-focused investors
- • Active regulatory friction in Europe regarding post-acquisition VMware software subscription bundling and pricing changes
📊 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: 2026-10-17
Disclaimer: This information is for educational purposes only. Not financial advice.