Broadcom Inc. (AVGO)

Business overview

Broadcom demonstrates high profitability, highlighted by a gross margin of 67.8% and an operating margin of 39.9%. Its free cash flow margin stands at a strong 42.1%, contributing to a Financial Quality pillar score of 77. These robust margins reflect significant operational efficiency within the technology sector.

Financial health

The stock carries a Balance Sheet pillar score of 46, reflecting potential balance sheet headwinds relative to peers. Free cash flow production remains steady with an FCF yield of 2.9%. Detailed underlying balance sheet items like cash reserves and total debt are unavailable in the provided dataset.

Gross Margin

67.8%

Operating Margin

39.9%

Current Ratio

1.7x

Debt / Equity

0.83

Free Cash Flow (TTM)

$26.9B

Interest Coverage

Data unavailable

Valuation

Broadcom trades at a P/E ratio of 41.32 and a P/S ratio of 14.85, yielding a lower Valuation pillar score of 49. The EV/EBITDA metric is Data unavailable. The stock's FCF yield of 2.9% reflects a higher price multiple relative to its cash flow generation.

P/E (TTM)

41.3x

Forward P/E

Data unavailable

Price / Sales

14.8x

EV / EBITDA

Data unavailable

FCF Yield

2.9%

Key risks

• Specific qualitative risk factors are omitted as news and qualitative risk data are unavailable in the source.
• A P/E of 41.32 and P/S of 14.85 create valuation downside risk if operational growth slows.
• A Balance Sheet pillar score of 46 points to relative balance sheet weakness.