| Company name | Broadcom Inc |
| Stock ticker | AVGO |
| Live stock price | [stckqut]AVGO[/stckqut] |
| P/E compared to competitors | Fair |
MANAGEMENT EXECUTION
| Employee productivity | Poor |
| Sales growth | Good |
| EPS growth | Good |
| P/E growth | Good |
| EBIT growth | Good |
| Price growth | Good |
| R&D growth | Good |
| Income growth | Good |
| Assets growth | Good |
| Return on Assets growth | Good |
| Income / Rev growth | Good |
| TWCA Plus | Good |
| Standard TWCA | Good |
| Weighted ann. stock price increase | Good |
ANALYSIS
| Confident Investor Rating | Good |
| Target stock price (TWCA growth scenario) | $476.91 |
| Target stock price (averages with growth) | $1344.92 |
| Target stock price (averages with no growth) | $776.67 |
| Target stock price (manual assumptions) | $693.09 |
The following company description is from Reuters: https://finance.yahoo.com/quote/avgo/profile?p=avgo
Broadcom Inc. designs, develops, and supplies a range of semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates through three segments: Semiconductor Solutions, Infrastructure Software, and Intellectual Property licensing. It provides set-top box system-on-chips (SoCs); cable, digital subscriber line, and passive optical networking central office/consumer premise equipment SoCs; Wireless local area network access point SoCs; Ethernet switching and routing application specific standard products; embedded processors and controllers; serializer/deserializer application specific integrated circuits; optical and copper, and physical layers; and fiber optic laser and receiver components. The company also offers RF front end modules, filters, and power amplifiers; Wi-Fi, Bluetooth, and global positioning system/global navigation satellite system SoCs; custom touch controllers; serial attached small computer system interface, and redundant array of independent disks controllers and adapters; peripheral component interconnect express switches; fiber channel host bus adapters; read channel based SoCs; custom flash controllers; preamplifiers; and optocouplers, industrial fiber optics, motion control encoders and subsystems, and light emitting diodes. In addition, it provides mainframe and enterprise software solution and cybersecurity solutions. Its products are used in various applications, including enterprise and data center networking, home connectivity, set-top boxes, broadband access, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. Broadcom Inc. was incorporated in 2018 and is headquartered in San Jose, California.
Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Broadcom Inc as long as the indicators that I describe in my book The Confident Investor are favorable.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of Broadcom Inc calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
- Stock price at the time of the calculation: $308.89
- Growth: 0.1745
- Current EPS (TTM): $9.74
- P/E: 51.277626877296
- Future EPS Calc: $21.76
- Future Stock Price Calc: $1116.22
- Target stock price: $693.08
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I hope that this makes you a Confident Investor.