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 77.7× TTM earnings — roughly in line with its Technology sector average of 86.5×.

The Numbers

P/E (TTM)

77.7×

Sector avg: 86.5×

P/S (TTM)

27.5×

Sector avg: 20.0×

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 $370.45 77.7×
NVDA $220.92 54.7×
AAPL $316.83 40.1×
MSFT $507.14 31.7×
AMD $470.95 177.7×
INTC $89.54 —
PLTR $186.32 433.3×
CSCO $110.47 42.7×
ORCL $149.14 34.5×
CRM $257.65 37.4×
TXN $260.82 47.9×
QCOM $170.46 34.4×
ADBE $292.76 17.5×

Is the Multiple Justified?

August 30, 2026

Broadcom's P/E of 77.3x, slightly below the sector average of 85.4x, indicates a balanced market perspective. The company reported robust Q2 FY2026 results, with consolidated revenue up 48% year-over-year, primarily driven by a 143% surge in AI semiconductor revenue. Broadcom's strategic focus on custom AI chips and networking, along with key partnerships, underpins expectations for continued AI-driven growth, with significant expansion projected for fiscal 2026 and 2027. However, concerns regarding potential substantial debt financing for future AI-related transactions and increasing competition from hyperscalers developing in-house chips may temper its valuation relative to the broader technology sector.

Sources

Frequently Asked Questions

Is AVGO overvalued or undervalued?
On trailing-twelve-month earnings, AVGO trades at 77.7x versus a Technology sector average of 86.5x in our coverage — a 10.3% discount. 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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