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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.
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.
|Latest market close||USD$375.77|
|52-week range||USD$155.67 - USD$387.8|
|50-day moving average||USD$364.7689|
|200-day moving average||USD$314.9171|
|Wall St. target price||USD$400.79|
|Dividend yield||USD$13 (3.46%)|
|Earnings per share (TTM)||USD$5.325|
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.
|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%|
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 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 "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 (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.
|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%|
|Market capitalisation||USD$152 billion|
TTM: trailing 12 months
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) 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.
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 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.).
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: 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").
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".
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 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.
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