AVGO
Broadcom · Information Technology · Semiconductors
$358.76
52w 287.17 – 495.00
20y monthly, adjusted
Mkt cap
$1.71T
P/E
75.8
P/FCF
65.1
FCF yield
1.5%
ROE
28.4%
Shldr yield
0.8%
div 0.6% + bb 0.1%
What today's price assumes
At $1.71T, the market is pricing in 23.9% annual free-cash-flow growth for the next decade (10% discount rate, 2.5% terminal growth). Over the last ten years, FCF actually grew 29.2% per year — expectations are roughly in line with history.
Simple DCF per-share range: $86 · $193 · $279 (4% / base / optimistic growth). An estimate, not a target.
Historical multiple lens
At its own median P/OCF of 14.2× across 10 years, AVGO would trade near $82/share (25th–75th percentile: $72–$115); it trades at 62.0× today.
Assumes the historical multiple regime persists — re-ratings can be permanent.
Growth record
Compound annual growth rates from as-filed 10-K data, split-adjusted
Rev 3y
+24.4%
Rev 5y
+21.7%
Rev 10y
+19.1%
EPS 5y
+49.4%
EPS 10y
—
FCF 5y
+18.3%
FCF 10y
+29.2%
Fundamentals
Fiscal 2016–2025, from SEC filings
Revenue
Net income
Free cash flow
Diluted shares (lower is better)
Margins
Capital returned (dividends + buybacks)
Cash vs long-term debt
Quarterly
Discrete quarters from 10-Q filings; Q4 derived as fiscal year minus Q1–Q3. OCF is unwound from the year-to-date figures 10-Qs report. Compare to the same quarter a year ago — most businesses are seasonal.
Revenue by quarter
Net income by quarter
| Quarter | Revenue | YoY | Net income | YoY | EPS | OCF |
|---|---|---|---|---|---|---|
| Q2'26 | $22.2B | +47.9% | $9.3B | +87.5% | 1.91 | $10.5B |
| Q1'26 | $19.3B | +29.5% | $7.3B | +33.5% | 1.50 | $8.3B |
| Q4'25 * | $18.0B | +28.2% | $8.5B | +97.0% | 1.75 | $7.7B |
| Q3'25 | $16.0B | +22.0% | $4.1B | — | 0.85 | $7.2B |
| Q2'25 | $15.0B | +20.2% | $5.0B | +134.1% | 1.03 | $6.6B |
| Q1'25 | $14.9B | +24.7% | $5.5B | +315.3% | 1.14 | $6.1B |
| Q4'24 * | $14.1B | +51.2% | $4.3B | +22.7% | 0.91 | $5.6B |
| Q3'24 | $13.1B | +47.3% | −$1.9B | −156.8% | -0.40 | $5.0B |
| Q2'24 | $12.5B | +43.0% | $2.1B | −39.1% | 0.44 | $4.6B |
| Q1'24 | $12.0B | +34.2% | $1.3B | −64.9% | 0.28 | $4.8B |
| Q4'23 * | $9.3B | +4.1% | $3.5B | +4.9% | -14.42 | $4.8B |
| Q3'23 | $8.9B | +4.9% | $3.3B | +7.4% | 0.77 | $4.7B |
| Q2'23 | $8.7B | +7.8% | $3.5B | +34.4% | 8.15 | $4.5B |
Track record
Compound annual growth by period. For debt and share count, negative is the good direction.
| Series | 3y | 5y | 10y | 15y |
|---|---|---|---|---|
| Revenue | +24.4% | +21.7% | — | — |
| Operating cash flow | +18.1% | +18.0% | — | — |
| Free cash flow | +18.2% | +18.3% | — | — |
| EPS (diluted) | +21.6% | +49.4% | — | — |
| Equity | +53.0% | +27.8% | — | — |
| LT debt | +16.6% | +9.0% | — | — |
| Diluted shares | +4.7% | +3.2% | — | — |
| Stock price | +59.1% | +51.3% | +38.8% | +39.9% |
$100, 3 years ago
$403vs $176 in SPY
59.1% vs 20.7%/yr
$100, 5 years ago
$793vs $181 in SPY
51.3% vs 12.6%/yr
$100, 10 years ago
$2,653vs $412 in SPY
38.8% vs 15.2%/yr
$100, 15 years ago
$15,317vs $813 in SPY
39.9% vs 15.0%/yr
The $1 test — market value created per $1 of earnings retained (Buffett's hurdle: at least $1)
Last 5 years
$89.43
$1.80T created / $20.1B retained
Quality & capital discipline
Cash-based returns and how management deploys capital
Cash ROIC
19.2%
OCF ÷ (equity + debt)
OCF / EV yield
1.5%
MC vs 10× OCF
6.37
≤1 = priced under 10× OCF
Debt / FCF
2.3y
SBC / FCF
28.1%
Owner earnings
$19.3B
OCF − capex − SBC
OE yield
1.1%
Share count 5y
+2.8%
per year; negative = buybacks
Capital intensity
4.0%
net PP&E ÷ revenue
Sales efficiency
$0.00
new PP&E per $1 new revenue, 5y
Growth engine (5y): reinvested 73.5% of operating cash flow at an incremental return of 21.9% — an organically fundable growth rate of about 16.1% per year (growth ≈ reinvestment rate × incremental ROIC).
Checklist
20 of 27 checks pass · 74%. Checks with structurally missing inputs are excluded.
Growth & Consistency
6/7
- pass
Revenue growth
21.7% · 5y CAGR ≥ 5%
- pass
EPS growth
49.4% · 5y CAGR ≥ 5%
- pass
FCF growth
18.3% · 5y CAGR ≥ 5%
- pass
Revenue rises consistently
9 of 9 · up in ≥ 7 of last 10 years
- pass
FCF consistently positive
10 of 10 · positive in ≥ 8 of last 10 years
- pass
Profitable every year
9 of 10 · net income > 0 in ≥ 8 of last 10
- fail
Cash flow keeps up with sales
18.0% vs 21.7% · OCF CAGR ≥ 0.9× revenue CAGR
Profitability
7/7
- pass
Net margin
36.2% · ≥ 8%
- pass
Operating margin
39.9% · ≥ 10%
- pass
Gross margin stable or rising
67.8% vs 66.5% · no drop > 2 pts over 3y
- pass
Return on equity
28.4% · ≥ 12%
- pass
Cash ROIC
19.2% · ≥ 12%
- pass
FCF margin
42.1% · ≥ 5%
- pass
Earnings back their cash
OCF $27.5B vs NI $23.1B · OCF ≥ net income (latest FY)
Balance Sheet
4/5
- pass
Debt payable from cash flow
2.3y · LT debt ≤ 3× FCF
- fail
Cash cushion
26% · cash ≥ 50% of LT debt
- pass
Leverage
0.76 · LT debt ≤ 1.5× equity
- pass
Equity positive and compounding
$81.3B · equity > 0 and grew over ~5y
- pass
Interest burden
13% · interest ≤ 15% of operating income
Capital Allocation
2/4
- fail
Share count flat or shrinking
2.8% · ≤ +0.5%/yr over ~5y
- fail
Stock comp restrained
28% · SBC ≤ 15% of FCF
- pass
Distributions funded by FCF
51% · dividends + buybacks ≤ 100% of FCF
- pass
Repurchases are a habit
6 of 10 · buybacks in ≥ 5 of last 10 years
Valuation Discipline
1/4
- fail
FCF yield
1.5% · ≥ 3%
- fail
Earnings multiple
75.8 · P/E ≤ 25
- pass
Price asks less than history delivered
23.9% vs 29.2% · implied FCF growth ≤ historical FCF CAGR
- fail
Shareholder yield
0.8% · dividends + buybacks ≥ 2% of market cap
Red flags
Mechanical checks — a flag is a question to investigate, not a verdict
Shareholder dilution
Diluted share count has grown by more than 2% per year over ~5 years.
Financial data
As filed in 10-Ks; per-share figures split-adjusted. $ in millions.
| FY | Revenue | Gross profit | Op income | Net income | EPS | OCF | CapEx | FCF | Dividends | Buybacks | SBC | Cash | LT debt | Equity | Shares |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 63,887 | 43,294 | 25,484 | 23,126 | 4.77 | 27,537 | 623 | 26,914 | 11,142 | 2,450 | 7,568 | 16,178 | 61,984 | 81,292 | 4,853 |
| 2024 | 51,574 | 32,509 | 13,463 | 5,895 | 1.23 | 19,962 | 548 | 19,414 | 9,814 | 7,176 | 5,741 | 9,348 | 66,295 | 67,678 | 4,778 |
| 2023 | 35,819 | 24,690 | 16,207 | 14,082 | 3.30 | 18,085 | 452 | 17,633 | 7,645 | 5,824 | 2,171 | 14,189 | 37,621 | 23,988 | 4,272 |
| 2022 | 33,203 | 22,095 | 14,225 | 11,495 | 2.65 | 16,736 | 424 | 16,312 | 6,733 | 7,000 | 1,533 | 12,416 | 39,075 | 22,709 | 4,232 |
| 2021 | 27,450 | 16,844 | 8,519 | 6,736 | 1.52 | 13,764 | 443 | 13,321 | 5,913 | 0 | 1,704 | 12,163 | 39,440 | 24,962 | 4,232 |
| 2020 | 23,888 | 13,516 | 4,014 | 2,960 | 0.64 | 12,061 | 463 | 11,598 | 5,235 | 0 | 1,976 | 7,618 | 40,235 | 23,874 | 4,153 |
| 2019 | 22,597 | 12,483 | 3,444 | 2,724 | 0.65 | 9,697 | 432 | 9,265 | 4,235 | 5,435 | 2,185 | 5,055 | 30,011 | 24,941 | 4,133 |
| 2018 | 20,848 | 10,733 | 5,135 | 12,259 | 2.88 | 8,880 | 635 | 8,245 | 2,921 | 7,258 | 1,227 | 4,292 | 17,493 | 26,657 | 4,252 |
| 2017 | 17,636 | 8,509 | 2,371 | 1,692 | 0.41 | 6,551 | 1,069 | 5,482 | 1,653 | 0 | 921 | 11,204 | 17,431 | 20,285 | 4,153 |
| 2016 | 13,240 | 5,940 | -409 | -1,739 | -0.49 | 3,411 | 723 | 2,688 | 716 | 0 | 679 | 3,097 | — | 21,876 | 3,778 |
Some concepts are structurally absent for certain industries (banks report no gross profit or capex). Missing ≠ zero.