Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our opinions or reviews. Learn how we make money.

How to buy Broadcom stock | 375.77

Own Broadcom stock in just a few minutes.

Updated

Fact checked

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 19,000 staff and has a trailing 12-month revenue of around USD$23.2 billion.

How to buy shares in Broadcom

  1. Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  3. Search for Broadcom. Find the stock by name or ticker symbol: AVGO. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Broadcom reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. At last close price of USD$375.77, weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of Broadcom, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Broadcom. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

How has coronavirus impacted Broadcom's share price?

Since the stock market crash in March caused by coronavirus, Broadcom's share price has had significant positive movement.

Its last market close was USD$375.77, which is 18.97% up on its pre-crash value of USD$304.5 and 141.39% up on the lowest point reached during the March crash when the shares fell as low as USD$155.67.

If you had bought USD$1,000 worth of Broadcom shares at the start of February 2020, those shares would have been worth USD$634.58 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth USD$1,232.53.

Broadcom share price

Use our graph to track the performance of AVGO stocks over time.

Broadcom shares at a glance

Information last updated 2020-10-20.
Latest market closeUSD$375.77
52-week rangeUSD$155.67 - USD$387.8
50-day moving average USD$364.7689
200-day moving average USD$314.9171
Wall St. target priceUSD$400.79
PE ratio 71.0413
Dividend yield USD$13 (3.46%)
Earnings per share (TTM) USD$5.325

Compare trading platforms

Compare special offers, low fees and a wide range of types of investments among top trading platforms.
Name Product Stock trade fee Asset types Option trade fee Annual fee
Vanguard
$0
Stocks, Mutual funds, ETFs, Forex
$1
$20 per year
Get a personal advisor when you open an account with at least $50,000.
Robinhood
$0
Stocks, Options, ETFs, Cryptocurrency
$0
0%
Make unlimited commission-free trades in stocks, funds, and options with Robinhood Financial.
Sofi Invest
$0
Stocks
N/A
0%
A free way to invest in stocks, ETFs and crypto.
Tastyworks
$0
Stocks, Options, ETFs, Futures
Stocks & ETFs: $1/contract to open, $0 to close, $10 max/leg
Futures: $2.50/contract to open, $0 to close
0%
Trade stocks, options, ETFs and futures on mobile or desktop with this advanced platform.
Interactive Brokers
$0
Stocks, Bonds, Options, Mutual funds, Index funds, ETFs, Futures, Cash
$0 + $0.65/contract, $1 minimum
0%
IBKR Lite offers $0 commissions, and IBKR Pro offers advanced tools for professional traders.
TD Ameritrade
$0
or $25 broker-assisted
Stocks
$0 + $0.65/contract,
or $25 broker-assisted
TD Ameritrade features $0 commission for online stock, but watch out for high short-term ETF and broker-assisted trading fees.
loading

Compare up to 4 providers

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.

Is it a good time to buy Broadcom stock?

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.

Broadcom price performance over time

Historical closes compared with the close of $375.77 from 2020-10-19

1 week (2020-10-21) 1.00%
1 month (2020-09-28) 2.31%
3 months (2020-07-28) 22.26%
6 months (2020-04-28) 41.94%
1 year (2019-10-28) 28.89%
2 years (2018-10-26) 76.29%
3 years (2017-10-27) 48.58%
5 years (2015-10-28) 195.67%

Is Broadcom under- or over-valued?

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 P/E ratio

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 71x. In other words, Broadcom shares trade at around 71x 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 PEG ratio

Broadcom's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.1904. 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

Broadcom's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$10.5 billion.

The EBITDA is a measure of a Broadcom's overall financial performance and is widely used to measure a its profitability.

Broadcom financials

Revenue TTM USD$23.2 billion
Operating margin TTM 17.1%
Gross profit TTM USD$15.9 billion
Return on assets TTM 3.33%
Return on equity TTM 11.02%
Profit margin 10.7%
Book value $58.309
Market capitalisation USD$152 billion

TTM: trailing 12 months

Shorting Broadcom shares

There are currently 3.9 million Broadcom shares held short by investors – that's known as Broadcom's "short interest". This figure is 1.3% down from 4.0 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)

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 2.5 million). Broadcom's SIR currently stands at 1.59. In other words for every 100,000 Broadcom shares traded daily on the market, roughly 1590 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 0.0135% of the tradable shares (for every 100,000 tradable Broadcom shares, roughly 14 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.

Broadcom's environmental, social and governance track record

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.

Broadcom's total ESG risk score

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 10/01/2020) 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.).

Broadcom's environmental score

Environmental score: 5.96/100

Broadcom's social score

Social score: 5.66/100

Broadcom's governance score

Governance score: 6.43/100

Broadcom's controversy score

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.

Environmental, social, and governance (ESG) summary

Broadcom Inc was last rated for ESG on: 2020-10-01.

Total ESG score 23.54
Total ESG percentile 38.46
Environmental score 5.96
Social score 5.66
Governance score 6.43
Level of controversy 3

Broadcom share dividends

49%

Dividend payout ratio: 49.35% of net profits

Recently Broadcom has paid out, on average, around 49.35% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 3.46% 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 3.46% return on their shares, in the form of dividend payments. In Broadcom's case, that would currently equate to about $13 per share.

While Broadcom's payout ratio might seem fairly standard, it's worth remembering that Broadcom may be investing much of the rest of its net profits in future growth.

Broadcom's most recent dividend payout was on 30 September 2020. The latest dividend was paid out to all shareholders who bought their shares by 21 September 2020 (the "ex-dividend date").

Broadcom share price volatility

Over the last 12 months, Broadcom's shares have ranged in value from as little as $155.67 up to $387.8. A popular way to gauge a stock's volatility is its "beta".

AVGO.US volatility(beta: 0.92)Avg. volatility(beta: 1.00)LowHigh

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 0.9178. This would suggest that Broadcom's shares are less volatile than average (for this exchange).

Broadcom overview

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. The company has a collaboration agreement with Liqid Inc. Broadcom Inc. was incorporated in 2018 and is headquartered in San Jose, California.

Frequently asked questions

More guides on Finder

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and finder.com Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site