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 78.3× TTM earnings — roughly in line with its Technology sector average of 76.0×.

The Numbers

P/E (TTM)

78.3×

Sector avg: 76.0×

P/S (TTM)

27.7×

Sector avg: 17.2×

Market Cap

$1.77T

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 $373.72 78.3×
NVDA $195.52 48.4×
AAPL $312.73 39.6×
MSFT $386.79 24.2×
AMD $551.70 208.2×
INTC $122.14 —
CSCO $113.98 44.0×
ORCL $143.82 33.3×
PLTR $132.53 308.2×
TXN $303.53 55.7×
QCOM $186.38 37.7×
CRM $165.63 24.0×
ADBE $218.11 13.1×

Is the Multiple Justified?

July 6, 2026

Broadcom's P/E of 78.7x is slightly above the Technology sector average of 76.3x. The company reported record Q2 fiscal year 2026 revenue of $22.2 billion, up 48% year-over-year, with adjusted EBITDA increasing 52% to $15.2 billion. AI semiconductor revenue was a significant driver, reaching $10.8 billion, up 143% year-over-year, with Q3 guidance projecting over 200% year-over-year AI growth. However, recent guidance for Q3 indicated a potential decline in gross margin to 74% from 77.1% in Q2, due to a higher mix of lower-margin AI semiconductor revenues, raising some profitability concerns. Despite strong AI momentum, the stock experienced a pullback due to investor expectations for an even larger upward revision to its longer-term AI outlook. The current P/E is above its nine-year average of 49.76, but below its three-year average of 80x, and a "Fair Price-To-Earnings Ratio" of 76.9x.

Sources

Frequently Asked Questions

Is AVGO overvalued or undervalued?
On trailing-twelve-month earnings, AVGO trades at 78.3x versus a Technology sector average of 76.0x in our coverage — a 3% premium. 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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