Why Are People Talking About Investing in Broadcom (AVGO)?

After moving -2.4% during today's afternoon session, Broadcom is now trading at a price of $880.6 per share. On average, analysts give it a target price of $917.48.

Broadcom Inc. designs, develops, and supplies various semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide.

Broadcom Investors Should Consider This:

  • Broadcom has moved 104.0% over the last year.

  • The company has a price to earnings growth (PEG) ratio of 2.15. A number between 0 and 1 could mean that the market is undervaluing Broadcom's estimated growth potential

  • Its Price to Book (P/B) ratio is 16.47

  • Broadcom currently returns an annual dividend yield of 2.0%.

Understanding Broadcom's Operating Margins

Date Reported Total Revenue ($ k) Operating Expenses ($ k) Operating Margins (%) YoY Growth (%)
2022-12-09 33,203,000 -7,813,000 43 34.38
2021-12-17 27,450,000 -8,177,000 32 77.78
2020-12-18 23,888,000 -9,304,000 18 0.0
2019-12-20 22,597,000 -8,303,000 18 -30.77
2018-12-21 20,848,000 -5,365,000 26 73.33
2017-12-13 17,636,000 -5,843,000 15

Over the last 6 years, Broadcom's operating margins have averaged 25.3%, which is similar to the 25.44% Semiconductors industry average. We also note that the company's operating margins have a high coefficient of variability at 42.2%. On the other hand, we note that the firm's margins are growing at a 19.2% compounded average yearly rate.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.