Broadcom Inc. (AVGO) Financial Ratios
20 years of historical data (2006–2025) · Technology · Semiconductors
EV/EBITDA
↑
60.30
↑+117% vs avg
5yr avg: 27.85
30Y Low9.1·High53.8
P/FCF
↑
74.94
↑+137% vs avg
5yr avg: 31.58
30Y Low11.5·High66.6
P/B Ratio
↑
25.40
↑+90% vs avg
5yr avg: 13.37
30Y Low3.0·High22.1
ROE
↑
31.0%
-14% vs avg
5yr avg: 36.0%
30Y Low-30%·High60%
Debt/EBITDA
↓
1.90
↓-18% vs avg
5yr avg: 2.32
30Y Low0.0·High12.8
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
AVGO Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Broadcom Inc. trades at 89.2x earnings, 52% above its 5-year average of 58.7x, sitting at the 93rd percentile of its historical range. Compared to the Technology sector median P/E of 27.5x, the stock trades at a premium of 225%. On a free-cash-flow basis, the stock trades at 74.9x P/FCF, 137% above the 5-year average of 31.6x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $2.02T | $1.79T | $807.1B | $358.0B | $200.0B | $228.1B | $147.2B | $124.3B | $95.2B | $107.9B | $65.2B |
| Enterprise Value | $2.07T | $1.84T | $865.3B | $383.5B | $227.6B | $256.2B | $181.3B | $152.0B | $108.4B | $114.3B | $75.8B |
| P/E Ratio → | 89.19 | 77.49 | 137.33 | 25.41 | 17.85 | 35.45 | 55.49 | 46.34 | 7.77 | 62.83 | — |
| P/S Ratio | 31.57 | 28.08 | 15.65 | 9.99 | 6.02 | 8.31 | 6.16 | 5.50 | 4.56 | 6.12 | 4.93 |
| P/B Ratio | 25.40 | 22.07 | 11.93 | 14.92 | 8.81 | 9.13 | 6.16 | 4.98 | 3.57 | 4.66 | 2.98 |
| P/FCF | 74.94 | 66.65 | 41.57 | 20.30 | 12.26 | 17.12 | 12.69 | 13.41 | 11.54 | 19.69 | 24.27 |
| P/OCF | 73.25 | 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
AVGO EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Broadcom Inc.'s enterprise value stands at 60.3x EBITDA, 117% above its 5-year average of 27.8x. The Technology sector median is 17.4x, placing the stock at a 247% premium on an enterprise-value basis.
| 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 | 60.30 | 53.79 | 36.86 | 19.13 | 11.85 | 17.60 | 16.60 | 16.48 | 11.79 | 16.10 | 28.82 |
| EV / EBIT | 81.07 | 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 |
AVGO Profitability
Margins and return-on-capital ratios measuring operating efficiency
Broadcom Inc. earns an operating margin of 39.9%. Operating margins have compressed from 45.2% to 39.9% over the past 3 years, signaling potential cost pressures or competitive headwinds. Return on equity of 31.0% is exceptionally high. ROIC of 14.9% represents solid returns on invested capital.
Margins
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% |
Return on Capital
| 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% |
AVGO Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Broadcom Inc. carries a Debt/EBITDA ratio of 1.9x, which is manageable (34% below the sector average of 2.9x). Net debt stands at $49.0B ($65.1B total debt minus $16.2B cash). Interest coverage of 7.9x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| 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 | 7.94 | 7.94 | 3.41 | 9.99 | 8.19 | 4.52 | 2.26 | 2.39 | 8.18 | 5.22 | -0.70 |
AVGO Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.71x means Broadcom Inc. can comfortably meet its short-term obligations, though there is limited excess liquidity. The current ratio has declined from 2.82x to 1.71x over the past 3 years.
| 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 | — | 40.82 | 31.25 | 32.14 | 32.52 | 27.54 | 35.10 | 52.64 | 58.21 | 50.66 | 60.13 |
AVGO Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Broadcom Inc. returns 0.9% to shareholders annually — split between a 0.5% dividend yield and 0.3% buyback yield. A payout ratio of 48.2% is moderate and appears sustainable, balancing shareholder returns with reinvestment capacity. The earnings yield of 1.1% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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 | 0.5% | 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% | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.1% | 1.3% | 0.7% | 3.9% | 5.6% | 2.8% | 1.8% | 2.2% | 12.9% | 1.6% | — |
| FCF Yield | 1.3% | 1.5% | 2.4% | 4.9% | 8.2% | 5.8% | 7.9% | 7.5% | 8.7% | 5.1% | 4.1% |
| Buyback Yield | 0.3% | 0.4% | 1.5% | 2.1% | 4.2% | 0.6% | 0.5% | 5.2% | 7.6% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.9% | 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 |
Peer Comparison
Compare AVGO with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 AVGOYou | $2.0T | 89.2 | 60.3 | 74.9 | 67.8% | 39.9% | 31.0% | 14.9% | 1.9 |
 QCOM | $203B | 38.5 | 15.2 | 15.8 | 55.4% | 27.9% | 23.3% | 29.1% | 1.2 |
 MRVL | $149B | 56.1 | 114.1 | 106.8 | 51.0% | 16.1% | 19.3% | 6.0% | 3.4 |
 ADI | $203B | 91.2 | 42.4 | 47.4 | 61.5% | 26.6% | 6.6% | 5.4% | 1.8 |
 TXN | $264B | 53.1 | 34.4 | 101.2 | 57.0% | 34.1% | 30.1% | 15.8% | 1.9 |
 INTC | $567B | -1918.7 | 51.3 | — | 34.8% | -0.0% | -0.2% | -0.0% | 4.0 |
 MCHP | $56B | -9999.0 | 57.9 | 72.2 | 56.1% | 6.7% | -0.0% | 1.8% | 5.4 |
 NVDA | $5.0T | 42.4 | 37.9 | 52.2 | 71.1% | 60.4% | 101.5% | 81.8% | 0.1 |
 AMD | $687B | 159.0 | 102.4 | 102.0 | 49.5% | 10.7% | 7.2% | 4.7% | 0.7 |
 AMAT | $340B | 49.5 | 40.4 | 59.7 | 48.7% | 29.2% | 35.5% | 33.3% | 0.8 |
 MPWR | $81B | 129.6 | 102.7 | 121.8 | 55.2% | 26.1% | 18.4% | 22.2% | 0.0 |
| Technology Median | — | 27.5 | 17.4 | 19.8 | 48.6% | -0.5% | 2.4% | 2.9% | 2.9 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonAVGO — Frequently Asked Questions
Quick answers to the most common questions about buying AVGO stock.
What is Broadcom Inc.'s P/E ratio?
Broadcom Inc.'s current P/E ratio is 89.2x. The historical average is 42.9x. This places it at the 93th percentile of its historical range.
What is Broadcom Inc.'s EV/EBITDA?
Broadcom Inc.'s current EV/EBITDA is 60.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 19.3x.
What is Broadcom Inc.'s ROE?
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%.
Is AVGO stock overvalued?
Based on historical data, Broadcom Inc. is trading at a P/E of 89.2x. This is at the 93th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Broadcom Inc.'s dividend yield?
Broadcom Inc.'s current dividend yield is 0.54% with a payout ratio of 48.2%.
What are Broadcom Inc.'s profit margins?
Broadcom Inc. has 67.8% gross margin and 39.9% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Broadcom Inc. have?
Broadcom Inc.'s Debt/EBITDA ratio is 1.9x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.