Latest Ratios: P/E Ratio 77.7x · EV/EBITDA 52.9x · ROE 31.0%. (2006–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.76T | $1.79T | $807.1B | $358.0B | $200.0B | $228.1B | $147.2B | $124.3B | $95.2B | $107.9B | $65.2B |
| Enterprise Value | $1.81T | $1.84T | $865.3B | $383.5B | $227.6B | $256.2B | $181.3B | $152.0B | $108.4B | $114.3B | $75.8B |
| P/E Ratio → | 77.73 | 77.49 | 137.33 | 25.41 | 17.85 | 35.45 | 55.49 | 46.34 | 7.77 | 62.83 | — |
| P/S Ratio | 27.61 | 28.08 | 15.65 | 9.99 | 6.02 | 8.31 | 6.16 | 5.50 | 4.56 | 6.12 | 4.93 |
| P/B Ratio | 22.14 | 22.07 | 11.93 | 14.92 | 8.81 | 9.13 | 6.16 | 4.98 | 3.57 | 4.66 | 2.98 |
| P/FCF | 65.54 | 66.65 | 41.57 | 20.30 | 12.26 | 17.12 | 12.69 | 13.41 | 11.54 | 19.69 | 24.27 |
| P/OCF | 64.06 | 65.14 | 40.43 | 19.80 | 11.95 | 16.57 | 12.20 | 12.82 | 10.72 | 16.48 | 19.12 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 28.84 | 16.78 | 10.71 | 6.85 | 9.33 | 7.59 | 6.73 | 5.20 | 6.48 | 5.72 |
| EV / EBITDA | 52.92 | 53.79 | 36.86 | 19.13 | 11.85 | 17.60 | 16.60 | 16.48 | 11.79 | 16.10 | 28.82 |
| EV / EBIT | 71.14 | 71.04 | 62.39 | 22.94 | 16.06 | 29.62 | 42.95 | 41.42 | 20.95 | 50.14 | — |
| EV / FCF | — | 68.47 | 44.57 | 21.75 | 13.95 | 19.23 | 15.63 | 16.41 | 13.14 | 20.85 | 28.19 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 67.8% | 67.8% | 63.0% | 68.9% | 66.5% | 61.4% | 56.6% | 55.2% | 51.5% | 48.2% | 44.9% |
| Operating Margin | 39.9% | 39.9% | 26.1% | 45.2% | 42.8% | 31.0% | 16.8% | 15.2% | 24.6% | 13.4% | -3.1% |
| Net Profit Margin | 36.2% | 36.2% | 11.4% | 39.3% | 34.6% | 24.5% | 12.4% | 12.1% | 58.8% | 9.6% | -13.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 31.0% | 31.0% | 12.9% | 60.3% | 48.2% | 27.6% | 12.1% | 10.6% | 49.2% | 7.5% | -13.1% |
| ROA | 13.7% | 13.7% | 4.9% | 19.3% | 15.4% | 8.9% | 4.1% | 4.6% | 23.5% | 3.2% | -5.8% |
| ROIC | 14.9% | 14.9% | 11.5% | 24.4% | 20.6% | 11.5% | 5.4% | 5.6% | 11.1% | 5.7% | -1.6% |
| ROCE | 16.9% | 16.9% | 12.6% | 24.6% | 21.0% | 12.3% | 6.2% | 6.4% | 10.3% | 4.8% | -1.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.80 | 0.80 | 1.00 | 1.65 | 1.76 | 1.61 | 1.74 | 1.31 | 0.66 | 0.76 | 0.62 |
| Debt / EBITDA | 1.90 | 1.90 | 2.88 | 1.98 | 2.08 | 2.77 | 3.82 | 3.56 | 1.90 | 2.47 | 5.19 |
| Net Debt / Equity | — | 0.60 | 0.86 | 1.06 | 1.21 | 1.12 | 1.43 | 1.11 | 0.50 | 0.27 | 0.48 |
| Net Debt / EBITDA | 1.43 | 1.43 | 2.48 | 1.27 | 1.43 | 1.93 | 3.12 | 3.01 | 1.44 | 0.89 | 4.01 |
| Debt / FCF | — | 1.82 | 3.00 | 1.44 | 1.69 | 2.11 | 2.94 | 2.99 | 1.60 | 1.16 | 3.92 |
| Interest Coverage | 8.08 | 8.08 | 3.51 | 10.31 | 8.16 | 4.59 | 2.37 | 2.54 | 8.24 | 5.02 | -0.89 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.71 | 1.71 | 1.17 | 2.82 | 2.62 | 2.64 | 1.87 | 1.44 | 3.90 | 6.26 | 2.31 |
| Quick Ratio | 1.58 | 1.58 | 1.07 | 2.56 | 2.35 | 2.43 | 1.71 | 1.31 | 3.41 | 5.68 | 1.86 |
| Cash Ratio | 0.87 | 0.87 | 0.56 | 1.92 | 1.76 | 1.94 | 1.20 | 0.73 | 1.84 | 4.43 | 1.01 |
| Asset Turnover | — | 0.37 | 0.31 | 0.49 | 0.45 | 0.36 | 0.31 | 0.33 | 0.42 | 0.32 | 0.26 |
| Inventory Turnover | 9.07 | 9.07 | 10.83 | 5.86 | 5.77 | 8.18 | 10.34 | 11.57 | 9.00 | 6.31 | 5.21 |
| Days Sales Outstanding | — | 69.42 | 44.81 | 32.14 | 32.52 | 27.54 | 35.10 | 52.64 | 58.21 | 50.66 | 60.13 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.6% | 0.6% | 1.2% | 2.1% | 3.5% | 2.7% | 3.8% | 3.4% | 3.2% | 1.5% | 1.1% |
| Payout Ratio | 48.2% | 48.2% | 166.5% | 54.3% | 61.2% | 92.2% | 187.0% | 155.5% | 24.5% | 97.7% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.3% | 1.3% | 0.7% | 3.9% | 5.6% | 2.8% | 1.8% | 2.2% | 12.9% | 1.6% | — |
| FCF Yield | 1.5% | 1.5% | 2.4% | 4.9% | 8.2% | 5.8% | 7.9% | 7.5% | 8.7% | 5.1% | 4.1% |
| Buyback Yield | 0.4% | 0.4% | 1.5% | 2.1% | 4.2% | 0.6% | 0.5% | 5.2% | 7.6% | 0.0% | 0.0% |
| Total Shareholder Yield | 1.0% | 1.0% | 2.8% | 4.3% | 7.7% | 3.3% | 4.3% | 8.6% | 10.8% | 1.5% | 1.1% |
| Shares Outstanding | — | $4.9B | $4.8B | $4.3B | $4.2B | $4.3B | $4.2B | $4.2B | $4.3B | $4.1B | $3.8B |
High acquisition-related leverage
Based on current market data, Broadcom trades at a forward P/E of 31.54, which appears to price in sustained leadership in AI networking infrastructure and successful software integration, representing a significant premium compared to traditional semiconductor peers like Texas Instruments or Qualcomm.
The elevated P/S ratio of 27.18 suggests that investors are assigning a high multiple to the company's recurring software revenue streams rather than just its cyclical hardware sales. While the PEG ratio of 1.53 indicates a reasonable valuation relative to expected growth, the market's willingness to pay such a premium warrants caution regarding the company's ability to consistently meet high-growth expectations in the networking silicon space.
As reported in financial statements, Broadcom's ROIC has trended upward from 1.7% in 2024Q1 to 6.2% in 2026Q2, suggesting that management is successfully extracting value from its massive asset base and improving the efficiency of its capital deployment following the VMware integration.
The steady expansion in ROIC indicates that the company's 'buy-integrate-harvest' strategy is effectively generating returns that exceed the cost of capital, despite the heavy burden of goodwill on the balance sheet. Investors should monitor whether this upward trajectory can be sustained as the company shifts its focus from aggressive M&A to organic growth and debt reduction.
According to quarterly filings, the cash conversion cycle has fluctuated between 43 and 72 days over the last ten quarters, reflecting the operational challenges of integrating diverse software and hardware supply chains into a unified, efficient infrastructure model.
The recent increase in the CCC to 66 days in 2026Q2 suggests that inventory management and payment terms are becoming more complex as the business scales. While the fabless model keeps capital intensity low, the variability in DSO and DIO warrants investigation to ensure that the company's working capital efficiency does not deteriorate as it manages larger, more complex enterprise contracts.
Based on reported figures, Broadcom has successfully reduced its debt-to-EBITDA ratio from a peak of 17.14 in 2024Q1 to 4.98 in 2026Q2, signaling a clear and disciplined commitment to strengthening the balance sheet after the significant debt load incurred during recent large-scale acquisitions.
The improvement in interest coverage to 14.59x provides a comfortable buffer against potential interest rate volatility, suggesting that the company's debt service capacity is significantly more robust than it was during the height of its acquisition cycle. This deleveraging trend is critical for maintaining investor confidence, as it reduces the risk profile associated with the company's historically aggressive M&A strategy.
The P/E ratio is frequently misapplied to Broadcom because it fails to account for the massive non-cash amortization of intangible assets resulting from the company's aggressive acquisition strategy, which significantly distorts GAAP earnings and obscures the firm's true cash-generative capacity.
Analysts should prioritize FCF-based valuation metrics, such as P/FCF or EV/EBITDA, which better reflect the company's ability to generate liquidity from its high-margin software and hardware franchises. Relying on P/E alone risks underestimating the company's underlying profitability and misinterpreting the impact of purchase price accounting on reported net income.
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Quick answers to the most common questions about buying AVGO stock.
Broadcom Inc.'s current P/E ratio is 77.7x. The historical average is 42.9x. This places it at the 87th percentile of its historical range.
Broadcom Inc.'s current EV/EBITDA is 52.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 19.3x.
Broadcom Inc.'s return on equity (ROE) is 31.0%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 17.8%.
Based on historical data, Broadcom Inc. is trading at a P/E of 77.7x. This is at the 87th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Broadcom Inc.'s current dividend yield is 0.62% with a payout ratio of 48.2%.
Broadcom Inc. has 67.8% gross margin and 39.9% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Broadcom Inc.'s Debt/EBITDA ratio is 1.9x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.