Broadcom Stock Analysis, Valuation (NASDAQ:AVGO)

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$249.76 $0.06 (0.02%) AVGO stock closing price Sep 19, 2017 (Closing)
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Broadcom
Updated on : Sep 19, 2017
previous close
AVGO 249.8 (0%)
NASDAQ 6461.3 (0%)
Closing Price On: Sep 19, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Electronics-Semiconductors
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q3
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
48.2%
Operating Profit
Operating Margin:
11.9%
Sector Average:
5.8%
5 Quarter Net Profit
Net Margins
2017-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
13.57B
Debt/Equity Ratio:
 0.6
Compared to the industry
Cash Flow
Operating cash flow:
$1.66B
Net Income:
$481M
Dividend Yield
AVGO dividend yield:
1.43%
PROS      CONS
Recent Growth
Long Term Growth
Operating Margins
Net Margins
Cash Flow
FCF Margin
High Debt Burden
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
AVGO PS :
6
Industry PS :
2.7
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
2%
Return on Equity:
2.4%
Free Cash Flow Margin:
31.4%
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Broadcom Analysis Video

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View Broadcom stock analysis video. This is our AVGO analyst opinion covering the buy and sell arguments for AVGO stock.

Broadcom Ltd Stock Rating (3.5/5)

Our Broadcom stock opinion is based on fundamentals of the company. This Broadcom stock analysis is based on latest 2017 Q3 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy AVGO stock?

  • The Year Over Year (YoY) revenue growth for Broadcom was 17.7% in 2017 Q3.
  • Revenue growth has been tremendous with a compounded annual growth of 48.2% over the last 5 years.
  • The TTM operating margin was good at 11.9% for Broadcom.
  • Net margins stood at a healthy 3.1% (average) for Broadcom in the Trailing Twelve Months.
  • The operating cash flow looks good at 3.4 times the net income.
  • AVGO stock is trading at an earnings multiple of 18.9 which is better than the industry average of 26.4.
  • The company has a healthy free cash flow margin of 31.4%.

Should you sell AVGO stock?

  • Broadcom has a debt/equity ratio of  0.6, which is worse than the average in the Computer and Technology sector.
  • The company is trading at a price to sales multiple of 6, which is higher in comparison to the Electronics-Semiconductors industry average of 2.7, making AVGO stock expensive.

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