Highly Regarded

Is Broadcom Inc. (AVGO) Stock Undervalued or Overvalued?

Trailing-twelve-month multiples vs Technology sector peers in our coverage

In Line TTM fundamentals · sector averages from covered peers

AVGO trades at 77.8× TTM earnings — roughly in line with its Technology sector average of 73.7×.

The Numbers

P/E (TTM)

77.8×

Sector avg: 73.7×

P/S (TTM)

27.5×

Sector avg: 16.8×

Market Cap

$1.76T

EPS (TTM): $4.77

Revenue (TTM)

$63.89B

Net income: $23.13B

Technology Peer Comparison

How AVGO's multiples stack up against sector peers we cover. Click any peer for its own valuation breakdown.

Stock Price P/E (TTM)
AVGO This page $370.92 77.8×
NVDA $202.77 50.2×
AAPL $333.66 42.2×
MSFT $393.89 24.6×
AMD $495.65 187.0×
INTC $94.98 —
CSCO $111.92 43.2×
ORCL $126.41 29.3×
PLTR $132.35 307.8×
TXN $283.97 52.1×
QCOM $171.79 34.7×
CRM $170.83 24.8×
ADBE $237.22 14.2×

Is the Multiple Justified?

July 12, 2026

Broadcom Inc. trades at a P/E ratio of 83.8x, slightly above the technology sector average of 76.4x. This modest premium is supported by the company's strong performance, particularly in its semiconductor segment driven by AI demand. Broadcom reported record Q2 FY2026 revenue of $22.2 billion, a 48% year-over-year increase, with AI semiconductor revenue surging 143% to $10.8 billion. The company anticipates continued robust growth, projecting Q3 AI semiconductor revenue to exceed 200% year-over-year. Additionally, the strategic acquisition of VMware, completed in November 2023, has expanded Broadcom's enterprise software portfolio. While the VMware integration has introduced changes to licensing models and some customer concerns, the overall strategy aims to diversify revenue and enhance its position in data center and cloud infrastructure, justifying the slight premium.

Sources

Frequently Asked Questions

Is AVGO overvalued or undervalued?
On trailing-twelve-month earnings, AVGO trades at 77.8x versus a Technology sector average of 73.7x in our coverage — a 5.6% premium. Whether that's justified depends on growth, margins, and risk; see the context above.
What does the P/E ratio tell you?
Price-to-earnings compares a company's share price with its per-share profits. A higher multiple means investors pay more per dollar of earnings — often for faster expected growth — while a lower one can signal slower growth or higher perceived risk.
Why compare against the sector average?
Valuation multiples vary structurally between industries — software typically trades richer than banks or energy. Comparing AVGO with its own Technology peers is more informative than comparing against the whole market.
Is a cheap stock automatically a good buy?
No. A discount can be justified by weak growth or elevated risk (a "value trap"), and a premium can be earned by quality and consistency. Valuation is one input — pair it with the fundamentals and the AI context on this page.

Methodology

Multiples are computed from trailing-twelve-month fundamentals (from company filings) and the latest share price: P/E is price ÷ diluted EPS, and P/S is market cap ÷ revenue. Sector averages use the Technology names in our 50-stock coverage with positive earnings — a deliberately like-for-like, if imperfect, benchmark.

Stocks with negative trailing earnings are compared on price-to-sales instead. Multiples update with prices and fundamentals; AI context refreshes weekly.

Not Financial Advice

This page is for education and information only. Indicators are mechanical calculations, AI commentary can contain errors, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a qualified financial advisor. See our full disclaimer.

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