Latest Ratios: P/E Ratio 76.4x · EV/EBITDA 52.1x · ROE 31.0%. (2006–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.73T | $1.79T | $807.1B | $358.0B | $200.0B | $228.1B | $147.2B | $124.3B | $95.2B | $107.9B | $65.2B |
| Enterprise Value | $1.78T | $1.84T | $865.3B | $383.5B | $227.6B | $256.2B | $181.3B | $152.0B | $108.4B | $114.3B | $75.8B |
| P/E Ratio → | 76.42 | 77.49 | 137.33 | 25.41 | 17.85 | 35.45 | 55.49 | 46.34 | 7.77 | 62.83 | — |
| P/S Ratio | 27.15 | 28.08 | 15.65 | 9.99 | 6.02 | 8.31 | 6.16 | 5.50 | 4.56 | 6.12 | 4.93 |
| P/B Ratio | 21.76 | 22.07 | 11.93 | 14.92 | 8.81 | 9.13 | 6.16 | 4.98 | 3.57 | 4.66 | 2.98 |
| P/FCF | 64.44 | 66.65 | 41.57 | 20.30 | 12.26 | 17.12 | 12.69 | 13.41 | 11.54 | 19.69 | 24.27 |
| P/OCF | 62.98 | 65.14 | 40.43 | 19.80 | 11.95 | 16.57 | 12.20 | 12.82 | 10.72 | 16.48 | 19.12 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 28.84 | 16.78 | 10.71 | 6.85 | 9.33 | 7.59 | 6.73 | 5.20 | 6.48 | 5.72 |
| EV / EBITDA | 52.05 | 53.79 | 36.86 | 19.13 | 11.85 | 17.60 | 16.60 | 16.48 | 11.79 | 16.10 | 28.82 |
| EV / EBIT | 69.98 | 71.04 | 62.39 | 22.94 | 16.06 | 29.62 | 42.95 | 41.42 | 20.95 | 50.14 | — |
| EV / FCF | — | 68.47 | 44.57 | 21.75 | 13.95 | 19.23 | 15.63 | 16.41 | 13.14 | 20.85 | 28.19 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 67.8% | 67.8% | 63.0% | 68.9% | 66.5% | 61.4% | 56.6% | 55.2% | 51.5% | 48.2% | 44.9% |
| Operating Margin | 39.9% | 39.9% | 26.1% | 45.2% | 42.8% | 31.0% | 16.8% | 15.2% | 24.6% | 13.4% | -3.1% |
| Net Profit Margin | 36.2% | 36.2% | 11.4% | 39.3% | 34.6% | 24.5% | 12.4% | 12.1% | 58.8% | 9.6% | -13.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 31.0% | 31.0% | 12.9% | 60.3% | 48.2% | 27.6% | 12.1% | 10.6% | 49.2% | 7.5% | -13.1% |
| ROA | 13.7% | 13.7% | 4.9% | 19.3% | 15.4% | 8.9% | 4.1% | 4.6% | 23.5% | 3.2% | -5.8% |
| ROIC | 14.9% | 14.9% | 11.5% | 24.4% | 20.6% | 11.5% | 5.4% | 5.6% | 11.1% | 5.7% | -1.6% |
| ROCE | 16.9% | 16.9% | 12.6% | 24.6% | 21.0% | 12.3% | 6.2% | 6.4% | 10.3% | 4.8% | -1.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.80 | 0.80 | 1.00 | 1.65 | 1.76 | 1.61 | 1.74 | 1.31 | 0.66 | 0.76 | 0.62 |
| Debt / EBITDA | 1.90 | 1.90 | 2.88 | 1.98 | 2.08 | 2.77 | 3.82 | 3.56 | 1.90 | 2.47 | 5.19 |
| Net Debt / Equity | — | 0.60 | 0.86 | 1.06 | 1.21 | 1.12 | 1.43 | 1.11 | 0.50 | 0.27 | 0.48 |
| Net Debt / EBITDA | 1.43 | 1.43 | 2.48 | 1.27 | 1.43 | 1.93 | 3.12 | 3.01 | 1.44 | 0.89 | 4.01 |
| Debt / FCF | — | 1.82 | 3.00 | 1.44 | 1.69 | 2.11 | 2.94 | 2.99 | 1.60 | 1.16 | 3.92 |
| Interest Coverage | 8.08 | 8.08 | 3.51 | 10.31 | 8.16 | 4.59 | 2.37 | 2.54 | 8.24 | 5.02 | -0.89 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.71 | 1.71 | 1.17 | 2.82 | 2.62 | 2.64 | 1.87 | 1.44 | 3.90 | 6.26 | 2.31 |
| Quick Ratio | 1.58 | 1.58 | 1.07 | 2.56 | 2.35 | 2.43 | 1.71 | 1.31 | 3.41 | 5.68 | 1.86 |
| Cash Ratio | 0.87 | 0.87 | 0.56 | 1.92 | 1.76 | 1.94 | 1.20 | 0.73 | 1.84 | 4.43 | 1.01 |
| Asset Turnover | — | 0.37 | 0.31 | 0.49 | 0.45 | 0.36 | 0.31 | 0.33 | 0.42 | 0.32 | 0.26 |
| Inventory Turnover | 9.07 | 9.07 | 10.83 | 5.86 | 5.77 | 8.18 | 10.34 | 11.57 | 9.00 | 6.31 | 5.21 |
| Days Sales Outstanding | — | 69.42 | 44.81 | 32.14 | 32.52 | 27.54 | 35.10 | 52.64 | 58.21 | 50.66 | 60.13 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.6% | 0.6% | 1.2% | 2.1% | 3.5% | 2.7% | 3.8% | 3.4% | 3.2% | 1.5% | 1.1% |
| Payout Ratio | 48.2% | 48.2% | 166.5% | 54.3% | 61.2% | 92.2% | 187.0% | 155.5% | 24.5% | 97.7% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.3% | 1.3% | 0.7% | 3.9% | 5.6% | 2.8% | 1.8% | 2.2% | 12.9% | 1.6% | — |
| FCF Yield | 1.6% | 1.5% | 2.4% | 4.9% | 8.2% | 5.8% | 7.9% | 7.5% | 8.7% | 5.1% | 4.1% |
| Buyback Yield | 0.4% | 0.4% | 1.5% | 2.1% | 4.2% | 0.6% | 0.5% | 5.2% | 7.6% | 0.0% | 0.0% |
| Total Shareholder Yield | 1.0% | 1.0% | 2.8% | 4.3% | 7.7% | 3.3% | 4.3% | 8.6% | 10.8% | 1.5% | 1.1% |
| Shares Outstanding | — | $4.9B | $4.8B | $4.3B | $4.2B | $4.3B | $4.2B | $4.2B | $4.3B | $4.1B | $3.8B |
Includes 30+ ratios · 20 years · Updated daily
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Quick answers to the most common questions about buying AVGO stock.
Broadcom Inc.'s current P/E ratio is 76.4x. The historical average is 42.9x. This places it at the 80th percentile of its historical range.
Broadcom Inc.'s current EV/EBITDA is 52.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 19.3x.
Broadcom Inc.'s return on equity (ROE) is 31.0%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 17.8%.
Based on historical data, Broadcom Inc. is trading at a P/E of 76.4x. This is at the 80th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Broadcom Inc.'s current dividend yield is 0.63% with a payout ratio of 48.2%.
Broadcom Inc. has 67.8% gross margin and 39.9% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Broadcom Inc.'s Debt/EBITDA ratio is 1.9x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
AI cycle and customer concentration risk
Metrics are mathematically derived from official filings.
Premium Pricing for AI-Driven Growth
Broadcom's forward P/E of 30.83 and EV/EBITDA of 23.39, as reported in recent market data, appear to price in the explosive AI-driven growth trajectory, with the PEG ratio of 1.50 suggesting the market is paying a premium for this acceleration.
The significant discount from the trailing P/E of 75.03 to the forward multiple indicates the market expects substantial earnings growth, likely driven by the AI semiconductor surge. Compared to peers like Marvell (MRVL) with a forward EV/EBITDA of 75.20, Broadcom's multiple appears more grounded, but this reflects its more diversified and mature software revenue stream. The valuation premium is justified only if the AI-driven revenue growth, which saw a 221% YoY increase in Q3, is sustained and successfully translates into durable free cash flow.
Structural Margin Expansion from Mix Shift
Gross margins have expanded to 69.1% in Q3 2026 from 62.3% in Q2 2024, per the provided ratio data, indicating a structural shift toward higher-margin AI accelerators and software that is enhancing the company's core earning power.
The operating margin expansion to 53.9% demonstrates exceptional operating leverage, where revenue growth is outpacing the relatively fixed cost structure of a fabless model. This margin profile is now significantly stronger than the peer group average, suggesting Broadcom's pricing power in custom silicon and its software mix are creating a durable profitability advantage. The net margin of 44.2% is particularly impressive, though investors should note this is likely a non-GAAP figure that excludes significant acquisition-related amortization.
Rapidly Improving Capital Efficiency
ROIC has surged from 1.7% in Q2 2024 to 8.9% in Q3 2026, according to the provided financial ratios, signaling a dramatic improvement in the company's ability to generate returns on its invested capital following the AI-driven revenue inflection.
The ROE expansion to 14.0% is driven by both margin expansion and a reduction in the equity base from prior share buybacks, though it remains below peers like Qualcomm (QCOM) at 37.3%. The key driver appears to be margin expansion rather than asset turnover, which remains low at 0.16, reflecting the capital-light fabless model. This trend suggests the company is entering a phase of value creation where the returns on its massive R&D and acquisition investments are beginning to compound.
Strategic Debt in Active Deleveraging
The D/E ratio has improved to 0.60 in Q3 2026 from a peak of 1.07 in Q3 2024, as reported in the financial data, indicating rapid deleveraging driven by the surge in earnings power from the AI cycle.
Interest coverage has expanded dramatically to 20.63x, making the substantial $59.4B debt load appear far more manageable and suggesting the debt service is becoming increasingly comfortable. The current ratio of 2.50 provides a substantial liquidity buffer, but the balance sheet remains mixed due to the $97.8B in goodwill, which represents over 52% of total assets. The rapid improvement in leverage metrics suggests the company is successfully using its AI-driven cash flows to de-risk its post-acquisition capital structure.
Working Capital Dynamics Mask Cash Strength
The cash conversion cycle has expanded to 50 days in Q3 2026 from 43 days in Q2 2024, per the provided data, primarily driven by an increase in days inventory outstanding, which may reflect strategic stocking for AI component demand.
The increase in DSO to 38 days suggests customers are taking slightly longer to pay, which could be a function of the larger, more complex deals in the AI infrastructure space. However, the company's ability to negotiate favorable payment terms is evident in the DPO of 32 days, which remains stable. The overall working capital efficiency is secondary to the company's primary driver: converting high-margin AI semiconductor sales into robust free cash flow, which has reached a 46.2% margin.
The Misapplied P/E Multiple
The trailing P/E of 75.03 is the most commonly misapplied ratio for Broadcom, as it is heavily distorted by massive non-cash amortization from acquisitions and does not reflect the company's true cash-generating ability.
This metric obscures the underlying business strength because GAAP earnings are depressed by purchase price accounting for deals like VMware, making the company appear far more expensive than it is on a cash flow basis. A more appropriate metric is the P/FCF ratio of 63.27, which, while still premium, better reflects the company's ability to generate cash. Analysts should also consider the forward P/E of 30.83, which incorporates the expected earnings power from the AI-driven growth cycle and provides a more relevant valuation anchor.