What are the investment strengths of Broadcom Inc (AVGO)?

FCF machine: 24.9B TTM (42% margin) with minimal capex (0.8% of revenue) funds 2.3/share dividend and debt paydown while maintaining R&D at 17% of revenue. Profitability moat: Operating margin 39% is 16x industry median (2.4%), ROE 27% vs -0.4% median - structural advantage from IP portfolio and scale.

What are the investment risks for Broadcom Inc (AVGO)?

Valuation stretched: P/E 99x (3x industry median 32x), P/S 32.5x (11x median 3x). Any margin miss or AI slowdown reprices aggressively. Balance sheet risk: 64.2B debt (0.88x equity), goodwill 133% of equity. VMware impairment or rate spike materially impacts.

Broadcom Inc

AVGO

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Broadcom Inc AI Insights

Informational only. Not investment advice.

As of 2025-12-08

Snapshot

Goodwill of 97.8B is 133% of equity (73.3B) - tangible book value is NEGATIVE (-58.9B). VMware integration risk is material.[Goodwill]
EPS growth TTM of 180% vs revenue growth implies massive margin expansion post-VMware. Operating margin 39% vs industry median 2.4%.[EPS Growth 1Y TTM]
FCF of 24.9B TTM (42% margin) on just 508M capex - asset-light model generates 49x capex in free cash annually.[Free Cash Flow TTM]

Watch Triggers

Operating Margin TTM: Falls below 35% — VMware synergy thesis fails; margin compression signals integration issues or pricing pressure
Free Cash Flow TTM: Falls below 20B — Threatens dividend sustainability (11.2B annual) and debt reduction capacity
Goodwill: Any impairment charge — At 133% of equity, even 10% writedown wipes 13% of book value

Bull Case

FCF machine: 24.9B TTM (42% margin) with minimal capex (0.8% of revenue) funds 2.3/share dividend and debt paydown while maintaining R&D at 17% of revenue.

Free Cash Flow TTMCapital Expenditure TTMR&D TTM

Profitability moat: Operating margin 39% is 16x industry median (2.4%), ROE 27% vs -0.4% median - structural advantage from IP portfolio and scale.

Operating Margin TTMROE TTMGross Margin TTM

Bear Case

Valuation stretched: P/E 99x (3x industry median 32x), P/S 32.5x (11x median 3x). Any margin miss or AI slowdown reprices aggressively.

P/E RatioP/S Ratio

Balance sheet risk: 64.2B debt (0.88x equity), goodwill 133% of equity. VMware impairment or rate spike materially impacts.

Total DebtGoodwillDebt to Equity

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

55%

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Forward Thesis

VMware synergies will drive operating margin expansion from 39% toward 45% within 18 months

1-3ymed

R&D leverage: 10.2B spend across larger revenue base
SG&A consolidation from VMware integration
Subscription transition improving revenue quality

Operating margin 39% TTM vs 2.4% industry medianEPS growth 180% TTM outpacing revenue growthFCF margin 42% shows conversion efficiency

AI semiconductor demand will sustain premium multiples despite 99x P/E

1-3ylow

Custom AI accelerator wins with hyperscalers
Networking chip demand for AI infrastructure
Software recurring revenue from VMware

Revenue 59.9B TTM (142x industry median)ROIC 13.9% vs industry median -0.3%Net income 18.9B TTM demonstrates scale

Valuation Context

Caveats

Public Strategies Rankings

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AVGO Fundamentals

Manufacturing → Computer and Electronic Product Manufacturing

Metric	Value	YoY Growth	Industry Percentile
Market Cap	$1.65T		—
Enterprise Value	$1.7T		—
P/E Ratio	84		—
Total Revenue - TTM	$59.93B	+28.0%	—
Earnings Per Share (diluted) - TTM	$4.05	+180.5%	—
Operating Margin - TTM	39.0%	+8.4%	—
Net Margin - TTM	31.6%	+20.7%	—
Free Cash Flow - TTM	$24.93B	+33.6%	—
Return on Common Equity - TTM	0.27	+15.6%	—
Beta 5Y (Monthly)	unknown		—

AVGO Dividend History

61 dividends

12/31/25$0.6500

09/30/25$0.5900

06/30/25$0.5900

03/31/25$0.5900

12/31/24$0.5900

09/30/24$0.5300

06/28/24$0.5250

03/29/24$0.5250

12/29/23$0.5250

09/29/23$0.4600

06/30/23$0.4600

03/31/23$0.4600

12/30/22$0.4600

09/30/22$0.4100

06/30/22$0.4100

03/31/22$0.4100

12/31/21$0.4100

09/30/21$0.3600

06/30/21$0.3600

03/31/21$0.3600

12/31/20$0.3600

09/30/20$0.3250

06/30/20$0.3250

03/31/20$0.3250

12/31/19$0.3250

10/01/19$0.2650

07/02/19$0.2650

03/29/19$0.2650

12/28/18$0.2650

09/28/18$0.1750

06/29/18$0.1750

03/29/18$0.1750

12/29/17$0.1750

09/29/17$0.1020

06/30/17$0.1020

03/31/17$0.1020

12/30/16$0.1020

09/30/16$0.0510

06/30/16$0.0500

03/31/16$0.0490

12/30/15$0.0440

09/30/15$0.0420

06/30/15$0.0400

03/31/15$0.0380

12/31/14$0.0350

09/30/14$0.0320

06/30/14$0.0290

03/31/14$0.0270

12/31/13$0.0250

09/30/13$0.0230

06/28/13$0.0210

04/04/13$0.0190

12/28/12$0.0170

10/01/12$0.0160

06/29/12$0.0150

03/30/12$0.0130

12/30/11$0.0120

09/30/11$0.0110

06/30/11$0.0090

03/30/11$0.0080

12/30/10$0.0070

AVGO Stock Splits

1 stock split

07/15/241:10 split

AVGO SEC Filings

Filing Date	Report Date	Report Type	Filing Link
09/10/25	08/03/25	10-Q	0001730168-25-000098
06/11/25	05/04/25	10-Q	0001730168-25-000064
03/12/25	02/02/25	10-Q	0001730168-25-000021
12/20/24	11/03/24	Unknown	0001730168-24-000139
09/11/24	08/04/24	10-Q	0001730168-24-000099
06/13/24	05/05/24	10-Q	0001730168-24-000080
03/14/24	02/04/24	10-Q	0001730168-24-000023
12/14/23	10/29/23	10-K	0001730168-23-000096
09/06/23	07/30/23	10-Q	0001730168-23-000077
06/07/23	04/30/23	10-Q	0001730168-23-000064
03/08/23	01/29/23	10-Q	0001730168-23-000008
12/16/22	10/30/22	10-K	0001730168-22-000118
09/08/22	07/31/22	10-Q	0001730168-22-000094
06/09/22	05/01/22	10-Q	0001730168-22-000081
03/10/22	01/30/22	10-Q	0001730168-22-000029
12/17/21	10/31/21	10-K	0001730168-21-000153
09/09/21	08/01/21	10-Q	0001730168-21-000123
06/11/21	05/02/21	10-Q	0001730168-21-000116
03/12/21	01/31/21	10-Q	0001730168-21-000045
12/18/20	11/01/20	10-K	0001730168-20-000226
09/11/20	08/02/20	10-Q	0001730168-20-000164
06/12/20	05/03/20	10-Q	0001730168-20-000109
03/13/20	02/02/20	10-Q	0001730168-20-000045
12/20/19	11/03/19	10-K	0001730168-19-000144
09/13/19	08/04/19	10-Q	0001730168-19-000118
06/14/19	05/05/19	10-Q	0001730168-19-000101
03/15/19	02/03/19	10-Q	0001730168-19-000036
12/21/18	11/04/18	10-K	0001730168-18-000084
09/13/18	08/05/18	10-Q	0001730168-18-000039
06/14/18	05/06/18	10-Q	0001730168-18-000019
03/15/18	02/04/18	10-Q	0001649338-18-000027
12/21/17	10/29/17	10-K	0001649338-17-000158
09/07/17	07/30/17	10-Q	0001649338-17-000107
06/08/17	04/30/17	10-Q	0001649338-17-000093
03/09/17	01/29/17	10-Q	0001649338-17-000027
12/23/16	10/30/16	10-K	0001649338-16-000151
09/08/16	07/31/16	10-Q	0001649338-16-000104
06/09/16	05/01/16	10-Q	0001649338-16-000088
03/10/16	01/31/16	10-Q	0001649338-16-000019
12/17/15	11/01/15	10-K	0001441634-15-000089
09/10/15	08/02/15	10-Q	0001441634-15-000048
06/10/15	05/03/15	10-Q	0001441634-15-000023
03/11/15	02/01/15	10-Q	0001441634-15-000002
12/29/14	11/02/14	10-K	0001441634-14-000049
09/12/14	08/03/14	10-Q	0001441634-14-000047
06/10/14	05/04/14	10-Q	0001441634-14-000045
03/13/14	02/02/14	10-Q	0001441634-14-000018
12/20/13	11/03/13	10-K	0001441634-13-000013
09/13/13	08/04/13	10-Q	0001441634-13-000007
06/07/13	05/05/13	10-Q	0001441634-13-000005
03/14/13	02/03/13	10-Q	0001441634-13-000003
12/17/12	10/28/12	10-K	0001441634-12-000010
08/30/12	07/29/12	10-Q	0001441634-12-000007
06/08/12	04/29/12	10-Q	0001441634-12-000004
03/08/12	01/29/12	10-Q	0001445305-12-000606
12/16/11	10/30/11	10-K	0001445305-11-003592
09/08/11	07/31/11	10-Q	0000950123-11-083475
06/09/11	05/01/11	10-Q	0000950123-11-057877
03/10/11	01/30/11	10-Q	0000950123-11-023882
12/15/10	10/31/10	10-K	0000950123-10-113875
09/02/10	08/01/10	10-Q	0001193125-10-203893
06/03/10	05/02/10	10-Q	0001193125-10-132134
03/04/10	01/31/10	10-Q	0001193125-10-047952
12/15/09	10/31/09	10-K	0001193125-09-253349
09/03/09	07/31/09	10-Q	0001193125-09-187012
08/07/09	04/30/09	Quarterly	--
03/04/10	02/01/09	10-Q	0001193125-10-047952
10/31/08	10/30/08	MSAnnual	--
09/03/09	07/31/08	10-Q	0001193125-09-187012