Our top pick for
Broadcom Inc is a semiconductors business based in the US. Broadcom shares (AVGO) are listed on the NASDAQ and all prices are listed in US Dollars. Broadcom employs 21,000 staff and has a trailing 12-month revenue of around USD$23.9 billion.
|52-week range||USD$148.87 - USD$495.14|
|50-day moving average||USD$467.3821|
|200-day moving average||USD$401.4244|
|Wall St. target price||USD$481.93|
|Dividend yield||USD$13.35 (2.73%)|
|Earnings per share (TTM)||USD$6.328|
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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.
Valuing Broadcom stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Broadcom's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Broadcom's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 76x. In other words, Broadcom shares trade at around 76x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
Broadcom's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.1821. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Broadcom's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Broadcom's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$11 billion.
The EBITDA is a measure of a Broadcom's overall financial performance and is widely used to measure a its profitability.
|Revenue TTM||USD$23.9 billion|
|Operating margin TTM||17.79%|
|Gross profit TTM||USD$17.4 billion|
|Return on assets TTM||3.7%|
|Return on equity TTM||12.12%|
|Market capitalisation||USD$196.2 billion|
TTM: trailing 12 months
There are currently 4.5 million Broadcom shares held short by investors – that's known as Broadcom's "short interest". This figure is 2.3% up from 4.4 million last month.
There are a few different ways that this level of interest in shorting Broadcom shares can be evaluated.
Broadcom's "short interest ratio" (SIR) is the quantity of Broadcom shares currently shorted divided by the average quantity of Broadcom shares traded daily (recently around 1.6 million). Broadcom's SIR currently stands at 2.77. In other words for every 100,000 Broadcom shares traded daily on the market, roughly 2770 shares are currently held short.
However Broadcom's short interest can also be evaluated against the total number of Broadcom shares, or, against the total number of tradable Broadcom shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Broadcom's short interest could be expressed as 0.01% of the outstanding shares (for every 100,000 Broadcom shares in existence, roughly 10 shares are currently held short) or 0.0155% of the tradable shares (for every 100,000 tradable Broadcom shares, roughly 16 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Broadcom.
Find out more about how you can short Broadcom stock.
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Broadcom.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Total ESG risk: 23.54
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Broadcom's overall score of 23.54 (as at 01/01/2019) is pretty good – landing it in it in the 38th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Broadcom is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Environmental score: 5.96/100
Social score: 5.66/100
Governance score: 6.43/100
Controversy score: 3/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. Broadcom scored a 3 out of 5 for controversy – a middle-of-the-table result reflecting that Broadcom hasn't always managed to keep its nose clean.
|Total ESG score||23.54|
|Total ESG percentile||38.46|
|Level of controversy||3|
Dividend payout ratio: 79.04% of net profits
Recently Broadcom has paid out, on average, around 79.04% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 2.94% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Broadcom shareholders could enjoy a 2.94% return on their shares, in the form of dividend payments. In Broadcom's case, that would currently equate to about $13.35 per share.
Broadcom's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.
Broadcom's most recent dividend payout was on 31 December 2020. The latest dividend was paid out to all shareholders who bought their shares by 18 December 2020 (the "ex-dividend date").
Over the last 12 months, Broadcom's shares have ranged in value from as little as $148.87 up to $495.14. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Broadcom's is 1.0411. This would suggest that Broadcom's shares are a little bit more volatile than the average for this exchange and represent, relatively-speaking, a slightly higher risk (but potentially also market-beating returns).
Broadcom Inc. designs, develops, and supplies semiconductor infrastructure software solutions. It offers 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's infrastructure software solutions enable customers to plan, develop, automate, manage, and secure applications across mainframe, distributed, mobile, and cloud platforms. It operates through two segments, Semiconductor Solutions and Infrastructure Software. The company was incorporated in 2018 and is based in San Jose, California.
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