AVGO
Broadcom Inc.
Broadcom combines attractive AI networking and custom silicon exposure with high-quality infrastructure software cash flows, though post-deal leverage and elevated expectations keep the current view balanced.
Live company workspace
This page is the current view. It combines the latest price context, filing status, reported fundamentals, refreshed normalized statements, and the current model output. Published actions and ratings stay here as reference, while the report page preserves the point-in-time note.
Current model signal
Buy
Confidence: Medium
Implied return: +14.5 upside
Fair value $1,924 vs. current $1,680 (+14.5 upside).
Model vs published view
Current model signal differs from the latest published analyst rating.
Ticker
AVGO
Model signal
Buy
Confidence
Medium
Fair value
$1,924
Upside / Downside
+14.5 upside
Jump to section
Live investment view
Base case stance: Buy with medium confidence as shares trade at $1,680 versus $1,924 fair value, implying +14.5 upside. This workspace updates with the latest live inputs, while the published report remains a point-in-time note.
Current model signal
Buy
Latest analyst action
Reiterated
Published Mar 18, 2026
Latest published rating
Hold
Published Mar 18, 2026
Model vs published view
Current model signal differs from the latest published analyst rating.
Current price data
AnalystScope curated current price
Live market-price fetch unavailable. Using the curated current price field.
Latest filing / report
8-K filed Apr 2, 2026 | Reporting period Mar 30, 2026
Last refreshed Apr 4, 2026, 3:32 AM UTC. Stale after Apr 4, 2026, 3:32 PM UTC.
Open filing sourceReported fundamentals
SEC XBRL companyfacts API
Live SEC companyfacts currently cover revenue, operating margin, free cash flow, and net cash / net debt. Reporting period end 2025-11-02.
Last refreshed 4 Apr 2026, 03:32 UTC. Stale after 4 Apr 2026, 15:32 UTC.
Current model signal
Buy
Confidence
Medium
Current price
$1,680
Fair value
$1,924
Upside / Downside
+14.5 upside
Top drivers
AI networking and custom silicon demand remain the largest source of incremental upside.
Infrastructure software continues to support durable cash generation through the cycle.
Top risks
Post-VMware leverage limits balance-sheet flexibility versus other large-cap peers.
Customer concentration and hyperscaler timing can create short-term order volatility.
Sector / Industry
Information Technology
Semiconductors & Infrastructure Software
Headquarters
Palo Alto, CA
Market Cap
$790B
Current / Fair Value
$1,680 / $1,924
Upside / Downside
+14.5 upside
Data status
Last updated: Mar 20, 2026
Curated public preview analysis with live price, filing metadata, and reported fundamentals overlays. Full live filing ingestion is not yet enabled.
Coverage is currently limited to ten companies: MSFT, NVDA, AAPL, GOOGL, AMZN, META, AVGO, ORCL, AMD, and NFLX.
Normalized financial summary
Curated normalized annual basis: FY2023 | FY2024 | FY2025
Revenue (Latest FY)
FY2025 | +23.8% vs prior FY
$63.9B
Operating Margin
+1374 bps vs prior FY
39.9%
FCF (Latest FY)
42.1% margin | FY2025
$26.9B
Net Cash / (Debt)
Leverage remains elevated after VMware
$7.8B
Key ratios
EV / NTM EBITDA
Sector 15.8x
17.5x
P / NTM EPS
Sector 24.1x
29.8x
ROIC
Sector 14.6%
21.7%
Rule of 40
Strong
49%
Base-case assumptions
These are AnalystScope's current base-case valuation inputs. The note under each number explains why that level is considered reasonable for this company; the sensitivity line shows how much fair value moves if that judgment is wrong.
Revenue CAGR (5Y)
14.0%
±1.0% => ±$55/sh
Why this level: This is AnalystScope's base-case growth assumption, not a guarantee. It sits below the latest normalized FY revenue pace (2025.0%), so the model does not extend current strength too far into the outer years. Current company context: AI networking and custom silicon demand remain the largest source of incremental upside.
Terminal Growth
3.0%
±0.5% => ±$38/sh
Why this level: This is AnalystScope's mature long-run growth assumption, not a perpetual hypergrowth claim. At 3.0%, it sits well below the 14.0% five-year revenue CAGR, so the model steps down from the explicit forecast period to a steadier long-run pace. For Broadcom Inc., that means a durable franchise can keep compounding after year five without assuming today's faster growth profile lasts indefinitely.
WACC
8.7%
±0.5% => ∓$48/sh
Why this level: This is AnalystScope's base-case cost-of-capital judgment, not a precise CAPM output. It reflects the current rates backdrop, equity risk premium, and the company's balance-sheet posture. Leverage remains elevated after VMware
Operating Margin (Year 5)
46.0%
±100 bps => ±$22/sh
Why this level: This is AnalystScope's base-case margin view, not a promise of straight-line expansion. It assumes some expansion from today's normalized operating margin (39.9%), with mix, scale, and operating leverage doing the work over time. Margin input normalizes post-acquisition mix effects and one-time integration costs.
How to read the assumptions and sensitivities
These are base-case assumptions used to estimate fair value. They are reasonable model inputs, not reported facts.
Each sensitivity line shows the estimated fair-value-per-share change from a small move in that one input while the other inputs stay fixed.
bps means basis points. 100 bps equals 1.00 percentage point.
WACC sensitivity moves in the opposite direction because a higher discount rate lowers present value, while a lower discount rate raises it.
Scenario workbench
Analyst workbench
This is a local edited scenario, not the published AnalystScope base case or report view. It keeps the published base case as the anchor, applies bounded changes to the four core valuation inputs, and updates the fair-value estimate immediately.
Base-case rationale remains in the assumptions section above. This first slice uses the published sensitivities to estimate how the edited scenario changes fair value while the cross-check methods remain the published reference point.
Editable assumptions
Adjust the inputs within a reasonable range. Edits stay local to this browser session.
Revenue CAGR (5Y)
Published base case: 14.0% | ±1.0% => ±$55/sh
Range: 8.0% to 20.0%
Terminal Growth
Published base case: 3.0% | ±0.5% => ±$38/sh
Range: 1.5% to 4.5%
WACC
Published base case: 8.7% | ±0.5% => ∓$48/sh
Range: 6.7% to 10.7%
Operating Margin (Year 5)
Published base case: 46.0% | ±100 bps => ±$22/sh
Range: 38.0% to 54.0%
Published base case
Fair value
$1,924
Upside / Downside
+14.5 upside
Model signal
Buy
Edited scenario
Fair value
$1,924
$0/sh vs published base case
Upside / Downside
+14.5 upside
+0.0 pts vs published base case
Model signal
Buy
Unchanged versus the published base case.
Normalized financial statements
Curated normalized annual statements in USD across FY2023 | FY2024 | FY2025.
Income statement
| Line item | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Revenue | $35.8B | $51.6B | $63.9B |
| Gross Profit | $24.7B | $32.5B | $43.3B |
| Operating Income | $16.2B | $13.5B | $25.5B |
| EBITDA | $17.7B | $15.8B | $28.5B |
| Net Income | $11.1B | $18.2B | $24.0B |
Balance sheet
| Line item | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Cash & Investments | $13.5B | $12.2B | $11.0B |
| Total Debt | $1.6B | $1.2B | $3.2B |
| Net Cash / (Debt) | $11.9B | $11.0B | $7.8B |
| Total Assets | $72.9B | $165.6B | $171.1B |
| Total Liabilities | $48.9B | $97.9B | $89.8B |
| Shareholders' Equity | $24.0B | $67.7B | $81.3B |
Cash flow
| Line item | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Operating Cash Flow | $18.1B | $20.0B | $27.5B |
| Depreciation & Amortization | $1.5B | $2.3B | $3.0B |
| Capital Expenditures | ($500.0M) | ($600.0M) | ($600.0M) |
| Free Cash Flow | $17.6B | $19.4B | $26.9B |
Model inputs vs reported fundamentals
Side-by-side view of the live reported fundamentals versus the latest normalized annual inputs still used in the current public analysis model.
Reported fundamentals source
SEC XBRL companyfacts API
Live SEC companyfacts currently cover revenue, operating margin, free cash flow, and net cash / net debt. Reporting period end 2025-11-02.
Last refreshed 4 Apr 2026, 03:32 UTC. Stale after 4 Apr 2026, 15:32 UTC.
Normalization impact on the thesis
These adjustments smooth VMware integration noise and capital-structure effects, which keeps the Broadcom thesis focused on recurring infrastructure cash generation rather than transaction distortion.
Statement basis diagnostics
Latest normalized basis FY2025 versus the current live reported snapshot where available.
Income statement
Revenue
FY2025 $63.9B vs reported TTM $63.9B (+0.0%)
Operating margin
FY2025 39.9% vs reported 39.9% (+0.0 pts)
Cash flow
Free cash flow
FY2025 $26.9B vs reported TTM $26.9B (-0.1%)
FCF margin
FY2025 42.1% vs reported 42.1% (-0.0 pts)
Balance sheet
Net cash / (debt)
FY2025 Net cash $7.8B vs reported Net debt $51.9B
| Metric | Reported | Status | Model input | Status |
|---|---|---|---|---|
| Revenue (TTM) | $63.9B | Live reported | $63.9B +23.8% YoY Adjustment: Model revenue smooths hyperscaler build timing and the current VMware integration cadence. | Model / normalized |
| Operating Margin | 39.9% | Live reported | 39.9% +1374 bps YoY Adjustment: Margin input normalizes post-acquisition mix effects and one-time integration costs. | Model / normalized |
| FCF (TTM) | $26.9B | Live reported | $26.9B 42.1% margin Adjustment: FCF input cleans up acquisition-related working-capital and restructuring timing. | Model / normalized |
| Net Cash / (Debt) | ($51.9B) | Live reported | $7.8B Leverage remains elevated after VMware Adjustment: Balance-sheet treatment keeps leverage conservative after VMware rather than assuming rapid deleveraging. | Model / normalized |
Normalization review
These adjustments smooth VMware integration noise and capital-structure effects, which keeps the Broadcom thesis focused on recurring infrastructure cash generation rather than transaction distortion.
Rows are sorted by largest comparable drift first.
| Metric | Latest normalized basis | Latest live reported | Delta / variance | Materiality | Normalization rationale |
|---|---|---|---|---|---|
Net Cash / (Debt) | $7.8B FY2025 normalized | ($51.9B) Live reported balance sheet | +$59.7B / +93.4% of revenue | High drift | Balance-sheet treatment keeps leverage conservative after VMware rather than assuming rapid deleveraging. |
Operating Margin | 39.9% FY2025 normalized | 39.9% Live reported margin | +0.0 pts | In band | Margin input normalizes post-acquisition mix effects and one-time integration costs. |
Revenue (TTM) | $63.9B FY2025 normalized | $63.9B Live reported TTM | +$0.0 / +0.0% | In band | Model revenue smooths hyperscaler build timing and the current VMware integration cadence. |
FCF (TTM) | $26.9B FY2025 normalized | $26.9B Live reported TTM | +$0.0 / +0.0% | In band | FCF input cleans up acquisition-related working-capital and restructuring timing. |
Ratios + trends
Normalized annual income-statement, cash-flow, and balance-sheet metrics, plus cross-statement quality relationships with compact prior-FY direction cues, derived from the curated statement backbone.
Basis: FY2023 | FY2024 | FY2025. Live reported fundamentals remain available in the reconciliation section.
Operating and cash-flow trends
Revenue growth (1Y)
+23.8%
Gross margin
67.8%
Operating margin
39.9%
Operating margin change vs prior FY
+13.7 pts
EBITDA margin
44.6%
EBITDA margin change vs prior FY
+14.0 pts
Operating income growth (1Y)
+88.9%
Net margin
37.6%
FCF margin
42.1%
FCF margin change vs prior FY
+4.5 pts
FCF growth (1Y)
+38.7%
Balance sheet quality
Cash & investments
$11.0B
Total debt
$3.2B
Net cash / (debt)
Net cash $7.8B
Net cash / (debt) as % of revenue
Net cash 12.2% of revenue
Liabilities / assets
vs FY2024 (-6.6 pts)
52.5%
Cross-statement quality
Gross-to-operating spread
27.9 pts
Operating cash flow / net income
vs FY2024 (+0.0x)
1.1x
Operating cash flow / EBITDA
vs FY2024 (-0.3x)
1.0x
Free cash flow / net income
vs FY2024 (+0.1x)
1.1x
CapEx as % of revenue
vs FY2024 (-0.2 pts)
0.9%
CapEx as % of operating cash flow
vs FY2024 (-0.8 pts)
2.2%
CapEx / D&A
vs FY2024 (-0.1x)
0.2x
Cash & investments / total debt
vs FY2024 (-6.7x)
3.4x
Shareholders' equity as % of revenue
127.2%
Asset turnover
vs FY2024 (+0.1x)
0.4x
Financial diagnostics
Compact normalized-basis diagnostics for analyst triage.
Drift focus
High driftBalance sheet | Net Cash / (Debt) | +$59.7B / +93.4% of revenue
Revenue momentum
Weakening+23.8% latest 1Y growth
vs +44.1% prior 1Y
Operating margin trend
Improving39.9% latest margin
+1374 bps vs prior FY
FCF margin trend
Improving42.1% latest FCF margin
+450 bps vs prior FY
Balance-sheet posture
WeakeningNet cash 12.2% of revenue
vs Net cash 21.3% of revenue prior FY
Thesis scorecard
Qualitative scorecard of the main thesis dimensions behind the current investment view.
Growth
StrongAI networking and custom silicon still support strong medium-term growth.
Profitability
StrongThe business retains exceptional margin and cash-conversion characteristics.
Balance sheet
WeakLeverage remains the clearest offset after the VMware transaction.
Valuation
ModerateThe shares already discount strong execution and integration progress.
Execution / Resilience
ModerateExecution quality is strong, but integration and customer concentration add complexity.
Key drivers
AI networking and custom silicon demand remain the largest source of incremental upside.
Infrastructure software continues to support durable cash generation through the cycle.
Management has a long track record of extracting margin and cash flow from acquired assets.
Key risks
Post-VMware leverage limits balance-sheet flexibility versus other large-cap peers.
Customer concentration and hyperscaler timing can create short-term order volatility.
Integration execution risk remains meaningful if software growth or cost actions underdeliver.
What would change our view
Faster deleveraging would improve confidence in the current fair value range.
A more durable AI networking cycle would likely justify a stronger rating stance.
Evidence of weaker software renewal quality would reduce conviction in the thesis.
Near-term catalysts
AI networking demand and customer timing remain the nearest catalyst for estimate revisions.
VMware integration updates can materially shift confidence in the software contribution.
Debt reduction progress matters for both confidence and valuation support.
What we are watching
Whether software execution remains clean as integration actions move deeper into the model.
How much of the current AI demand strength is structural versus front-loaded capacity spending.
The pace of deleveraging relative to capital-allocation expectations.
Coverage metadata
Last updated
Mar 18, 2026
Coverage status
Active coverage
Latest analyst action
Reiterated
Mar 18, 2026
Latest published rating
Hold
Mar 18, 2026
Analyst note
Watching AI networking durability, VMware integration quality, and the pace of deleveraging.
Model vs published view
Current model signal differs from the latest published analyst rating.
Current price source
AnalystScope curated current price
Live market-price fetch unavailable. Using the curated current price field.
Reported fundamentals source
SEC XBRL companyfacts API
Live SEC companyfacts currently cover revenue, operating margin, free cash flow, and net cash / net debt. Reporting period end 2025-11-02.
Last refreshed 4 Apr 2026, 03:32 UTC. Stale after 4 Apr 2026, 15:32 UTC.
Latest filing source
SEC EDGAR submissions API
8-K filed Apr 2, 2026 | Reporting period Mar 30, 2026
Last refreshed Apr 4, 2026, 3:32 AM UTC. Stale after Apr 4, 2026, 3:32 PM UTC.
Open filing sourceCoverage timeline
Timeline events show published analyst actions and ratings. The current model signal is shown separately above.
Mar 18, 2026
Maintained Hold as strong execution remains balanced by leverage and already-full expectations.
Jan 31, 2026
Moved to Hold as post-rally upside narrowed despite constructive operating trends.
Dec 12, 2025
Initiated with a Buy view on AI infrastructure demand and software cash-flow durability.
Bull / Base / Bear scenarios
Bull case
$2,151
Normalized support: Growth, margin, and cash-flow trends are mixed versus the upside case.
Base case
$1,924
Normalized support: Current margin, cash-generation, and balance-sheet profile support the base case.
Bear case
$1,651
Downside protection: Cash generation and balance-sheet support are mixed in the bear case.
Why this rating
The stock currently trades at $1,680 versus a base-case fair value of $1,924, implying +14.5 upside. That supports a Buy rating with Medium confidence under the current model.
Current price
$1,680
Fair value
$1,924
Upside / Downside
+14.5 upside
Model signal / Confidence
Buy / Medium
Confidence framing
Method agreement / dispersion
Valuation methods show a wider range from $1,736 to $2,135, which tempers conviction.
Margin strength
Operating margin is 39.9%, with +1374 bps vs prior FY.
Balance sheet position
Balance sheet positioning remains net cash positive at $7.8B, with leverage remains elevated after vmware.
Valuation methods
| Method | Implied Value | Weight |
|---|---|---|
| DCF (Base) | $2,135 | 45% |
| NTM P/E Multiple | $1,760 | 35% |
| EV/EBITDA Cross-check | $1,736 | 20% |
Buy / Hold / Sell output
Current model recommendation
Buy
Price: $1,680
Fair value: $1,924
Implied upside / downside: +14.5 upside
Latest published rating: Hold on Mar 18, 2026
Model vs published view
Current model signal differs from the latest published analyst rating.
The displayed rating is anchored to the base-case fair value. Buy is assigned at 8% or greater implied upside, Hold between -10% and +8%, and Sell at -10% or worse, with borderline calls cross-checked against normalized operating, cash-generation, and balance-sheet support. Confidence reflects valuation dispersion, operating margin profile, and balance-sheet strength.
What changed section
2026-03-18
Raised AI networking mix assumptions
Impact: +1.1% fair value
2026-03-10
Maintained conservative deleveraging path
Impact: Caps upside multiple expansion
2026-03-04
Improved software synergy capture assumptions
Impact: +0.5% FCF outlook