Key Considerations for Broadcom Investors

By Emilio Sanchez • Thursday, June 13 15:11 • Permanent Link

Shares of Semiconductors company Broadcom jumped 12.5% today. With many investors piling into AVGO without a second thought, it may be a good idea to take a closer look at the stock. Here are some quick facts to get you started:

Broadcom has moved 69.3% over the last year, and the S&P 500 logged a change of 22.5%
AVGO has an average analyst rating of buy and is 8.41% away from its mean target price of $1552.31 per share
Its trailing earnings per share (EPS) is $23.18
Broadcom has a trailing 12 month Price to Earnings (P/E) ratio of 72.6 while the S&P 500 average is 27.65
Its forward earnings per share (EPS) is $57.22 and its forward P/E ratio is 29.4
The company has a Price to Book (P/B) ratio of 28.42 in contrast to the S&P 500's average ratio of 4.59
Broadcom is part of the Technology sector, which has an average P/E ratio of 32.54 and an average P/B of 4.25
AVGO has reported YOY quarterly earnings growth of 188.1% and gross profit margins of 0.7%
The company has a free cash flow of $18.84 Billion, which refers to the total sum of all its inflows and outflows of cash over the last quarter
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. The company operates in two segments, Semiconductor Solutions and Infrastructure Software. It provides set-top box system-on-chips (SoCs); cable, digital subscriber line, and passive optical networking central office/consumer premise equipment SoCs; wireless local area network access point SoCs; Ethernet switching and routing custom silicon solutions; serializer/deserializer application specific integrated circuits; optical and copper, and physical layer devices; and fiber optic components and RF semiconductor devices. The company also offers RF front end modules and filter; Wi-Fi, Bluetooth, and global positioning system/global navigation satellite system SoCs; custom touch controllers; inductive charging; attached small computer system interface, and redundant array of independent disks controllers and adapters; peripheral component interconnect express; fiber channel host bus adapters; read channel based SoCs; custom flash controllers; preamplifiers; optocouplers, industrial fiber optics, and motion control encoders and subsystems; light emitting diode, ethernet PHYs, switch ICs, and camera microcontrollers. Its products are used in various applications, including enterprise and data center networking, home connectivity, set-top boxes, broadband access, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. Broadcom Inc. was founded in 1961 and is headquartered in Palo Alto, California.

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.