Broadcom (AVGO)
Forward P/E is 19.67x against a peer median of 26.81x, a ratio of 0.73x — well below the 0.90 undervalued threshold — with PEG 0.36, the standout growth-adjusted figure in this snapshot. Latest-quarter revenue grew +85.5% year over year (PRIMARY, SEC filings/EDGAR), more than double the semiconductor cluster median of +36.5%. Trailing P/E of 43.7x is high, but the forward discount combined with that delivered growth clears the undervalued test.
What would change this label: Moves to FAIRLY PRICED if revenue growth slows below +25% YoY for two consecutive quarters while the forward P/E stays near 19.67x, or if the forward P/E re-rates above about 24.1x (0.90x the current peer median) without further growth upgrades; moves toward OVERVALUED if the forward P/E rises above about 30.8x (1.15x the peer median) while growth falls below +36.5%, the cluster median.
Broadcom's shares cost about 20 times next year's expected earnings, while similar chip companies cost about 27 times — yet Broadcom's sales grew about 86% in the latest quarter, far faster than its rivals. On those numbers the shares look cheaper than they should be. The risk is that this very fast growth slows down sharply.
Both lines start at 100 on 2020-09-01. Over the full window Broadcom returned +852.13% and the S&P 500 +118.28% (price returns; dividends not reinvested). Worst peak-to-trough fall for Broadcom: -41.5% (2024-12-16 to 2025-04-04). Source: Nasdaq official daily history.
What the label rests on
Forward P/E is 19.67x against a peer median of 26.81x, a ratio of 0.73x — well below the 0.90 undervalued threshold — with PEG 0.36, the standout growth-adjusted figure in this snapshot. Latest-quarter revenue grew +85.5% year over year (PRIMARY, SEC filings/EDGAR), more than double the semiconductor cluster median of +36.5%. Trailing P/E of 43.7x is high, but the forward discount combined with that delivered growth clears the undervalued test. The company’s forward P/E is 19.7× against a peer median of 26.8×. Its own history: UNVERIFIED — no sourced range available. Sector demand read: Delivered demand check: the Semiconductors group's median latest-quarter revenue growth was 36.5% year over year (SEC filings) — demand rising. Latest-quarter sales growth was +85.5% versus a year earlier (SEC filings).
| Company | Price (Oct 27, 2026) | Forward P/E | Trailing P/E |
|---|---|---|---|
| Broadcom (AVGO) | $342.33 | 19.7× | 43.7× |
| MU | $928.76 | 5.3× | 12.5× |
| AMD | $564.24 | 50.8× | 144.8× |
| TXN | $306.04 | 26.8× | 39.7× |
| MRVL | $247.88 | 43.9× | 83.3× |
| ADI | $421.45 | 26.3× | 50.0× |
| Peer median | 26.8× |
Multiples: stockanalysis.com (SECONDARY, S&P Global data), fetched Oct 28, 2026. Peer set chosen by sector; the median is the middle value of the set. The label and its numbers were recorded in the programme’s label registry on Oct 28, 2026 and will be scored at 6 and 12 months.
Sales, profit and cash
Gross margin = gross profit divided by sales, from SEC filings.
Free cash flow = cash from operations minus spending on plant and equipment, both from the company’s SEC cash-flow statement. Gaps are quarters where that spending line is not separately tagged in the filings — shown as gaps, never estimated.
| Quarter | Sales | Gross margin | Net income | EPS (GAAP, diluted) | Free cash flow |
|---|---|---|---|---|---|
| Q/E Aug 2026 2026-08-02 | $29.6B | 69.1% | $13.1B | 2.68 | $13.7B |
| Q/E May 2026 2026-05-03 | $22.2B | 69.5% | $9.3B | 1.91 | $10.3B |
| Q/E Feb 2026 2026-02-01 | $19.3B | 68.1% | $7.3B | 1.50 | $8.0B |
| Q/E Nov 2025 2025-11-02 | $18.0B | 68.0% | $8.5B | — | $7.5B |
| Q/E Aug 2025 2025-08-03 | $16.0B | 67.1% | $4.1B | 0.85 | $7.0B |
| Q/E May 2025 2025-05-04 | $15.0B | 68.0% | $5.0B | 1.03 | $6.4B |
| Q/E Feb 2025 2025-02-02 | $14.9B | 68.0% | $5.5B | 1.14 | $6.0B |
| Q/E Nov 2024 2024-11-03 | $14.1B | 64.0% | $4.3B | — | $5.5B |
| Q/E Aug 2024 2024-08-04 | $13.1B | 63.9% | $-1.9B | -0.40 | $4.8B |
| Q/E May 2024 2024-05-05 | $12.5B | 62.3% | $2.1B | 4.42 | $4.4B |
| Q/E Feb 2024 2024-02-04 | $12.0B | 61.7% | $1.3B | 2.84 | $4.7B |
| Q/E Oct 2023 2023-10-29 | $9.3B | 68.9% | $3.5B | — | $4.7B |
The last twelve reported quarters. Full 24-quarter history sits in the data pack behind this page. A dash means the figure is not tagged as a standalone quarter in the company’s SEC facts (the usual case is the fourth quarter, which many companies only report inside the full-year filing) — it is missing, not zero.
Earnings: getting better or worse?
Each box is one quarter’s earnings per share (EPS). Green means EPS was higher than the same quarter a year earlier; red means lower; a dash means the figure is not tagged in the filings.
Basis: GAAP diluted EPS from SEC company facts, compared with the same quarter a year earlier.
Key facts
| Item | Value |
|---|---|
| Company (legal name in filings) | Broadcom Inc. |
| Chief executive | Hock Tan (source: https://en.wikipedia.org/wiki/Broadcom) |
| Sector | Technology — Semiconductors — sells semiconductors and infrastructure software |
| Share price (Oct 27, 2026) | $342.33 |
| Market value (market cap) | $1.63T — share price times shares outstanding of 4,773,629,865 (SEC filings; SEC EDGAR dei EntityCommonStockSharesOutstanding (latest)) |
| Sales, last twelve months | $89.1B |
| Net income, last twelve months | $38.3B |
| Free cash flow, last twelve months | $39.4B |
| Latest reported quarter | Q/E Aug 2026 (of 24 quarters in the data pack) |
| Six-year price return vs S&P 500 | +852.13% vs +118.28% |
| Worst peak-to-trough fall | -41.5% (2024-12-16 to 2025-04-04) |
What we could not verify
- TTM GAAP diluted EPS could not be summed from company facts because at least one of the last four quarters (typically Q4) has no standalone tagged EPS; trailing P/E is therefore taken from the labelled secondary source in valuation_label.md.
- Own-history P/E range not yet compiled for this company in the Phase 1 batch run; the label rests on peer-median, growth and PEG evidence.
- Brief fetch note: the statistics page also showed a pre-market price of 347.25 at Oct 28, 2026, 9:23 AM EDT; the stats_price recorded is the main closing price shown (the Oct 27, 2026 close).
- Guidance record (each quarter scored against the guidance the company gave the quarter before) is not yet compiled for this company — it is a Phase 2 layer. The earnings strip below therefore uses reported EPS versus a year earlier, which is fully sourced from filings.
The IT factor — the most exciting thing the market is overlooking — is not assessed on an X-Ray page. It belongs to the Deep Dive (Phase 2), where it gets the evidence standard it needs. Leadership-era scoring (the six years split by chief executive) is likewise a Phase 2 layer; this page names the current chief executive only, from a sourced profile.
Sources
- SEC EDGAR submissions — Filing index; company legal name.
https://data.sec.gov/submissions/CIK0001730168.json - SEC EDGAR company facts — Quarterly financial spine: revenue, gross profit, net income, GAAP diluted EPS, operating cash flow, PP&E capex, buybacks, dividends, diluted shares.
https://data.sec.gov/api/xbrl/companyfacts/CIK0001730168.json - Nasdaq official daily history — Daily closes for the company; SPY (assetclass=etf) saved as raw/nasdaq_spy_raw.json over identical dates.
https://api.nasdaq.com/api/quote/AVGO/historical?assetclass=stocks - Valuation multiples and peer figures — stockanalysis.com (SECONDARY, S&P Global data), fetched Oct 28, 2026; see valuation_label.md in the data pack.
Conventions: earliest-filed value per period, as first reported; cash-flow years-to-date differenced quarter by quarter; EPS never differenced; free cash flow = operating cash flow minus plant-and-equipment spending. This page is a dated snapshot — updates are new versions, never silent edits.