Value/share = (PV of forecast FCF + PV of terminal value - net debt) / diluted shares$355.72WACC 10.9% | g 2.5%
21.8x EV/EBITDA | 34.8x P/E
Enterprise value $1.8T
Value/share = equity value / diluted shares4,853,000,000Net debt $28.1B
AVGO Valuation Focus
The search terms investors use for this type of report usually center on valuation, intrinsic value, WACC, peer multiples, and the target price.
Broadcom Inc. (AVGO) is valued here with a $327.22 target price versus a current price of $385.73.
The base DCF intrinsic value is $355.72 per share using a 10.9% WACC and 2.5% terminal growth assumption.
The screened peer set shows median multiples of 21.8x EV/EBITDA and 34.8x P/E, producing a midpoint of $241.71.
Growth and Investment Outlook
This section keeps the long-term growth, investment outlook, and historical revenue/net income trend visible before the detailed valuation tables.
The model starts from 24.2% revenue growth and fades toward 3.3% steady-state growth under a compounder forecast profile.
The current public outlook is SELL, with a $327.22 target price and -15.2% modeled upside/downside. The main valuation cross-check is the DCF value of $355.72 per share.
Analyst estimate inputs are used where available for forecast years 1, 2, 3. This page is not an external analyst-ratings feed; it is a public valuation note built from the available report data.
| Fiscal year | Revenue | Revenue growth | Net income | Net income growth |
|---|---|---|---|---|
| 2023 | $35.8B | 7.9% | $14.1B | 22.5% |
| 2024 | $51.6B | 44% | $5.9B | -58.1% |
| 2025 | $63.9B | 23.9% | $23.1B | 292.3% |
Investment Summary
The call, the valuation anchor, and the main risk in one view.
SELL Broadcom Inc. is rated SELL with a target price of $327.22 versus the current price of $385.73.
The DCF implies $355.72 per share and the comparable midpoint lands at $241.71.
First, revenue growth could decelerate faster than the model fade path, especially if current market demand is cyclical.
Key Data
Quick facts investors usually scan first.
- Sector
- Technology
- Industry
- Semiconductors
- Exchange
- NASDAQ
- Market Cap
- $1.8T
- Revenue
- $63.9B
- Free Cash Flow
- $26.9B
Latest Update / What Changed
Updates focus on what changed in the rating, target price, valuation assumptions, peer context, and main risks.
Still SELL
+$0.00 versus the prior published target of $327.22.
Last captured on 6/7/2026 with -15.2% modeled upside.
Pro includes the full change log, watchlist alerts, and weekly digest for readers following multiple names.
Revenue Growth
Historical revenue plus a 5-year forecast shaped by analyst estimates in the early years and a deterministic compounder fade after that.
Price History
Use the range selector to compare shorter and longer setups.
DCF Sensitivity Grid
The grid shows DCF-only value per share across WACC and terminal growth assumptions. The published target price can differ because it blends DCF with market comparables.
Base-case DCF and the center cell should reconcile closely because both use the same blended terminal-value method (10.9% WACC / 2.5% g). The published target then applies a 25% comparable overlay to the DCF value.
Base-case cell: $356.24 using 10.9% WACC and 2.5% terminal growth.
| WACC \ g | 1.5% | 2% | 2.5% | 3% | 3.5% |
|---|---|---|---|---|---|
| 8.9% | $401.38 | $410.15 | $420.30 | $432.19 | $446.30 |
| 9.9% | $371.22 | $377.72 | $385.09 | $393.55 | $403.34 |
| 10.9% | $345.72 | $350.69 | $356.24 | $362.50 | $369.62 |
| 11.9% | $323.67 | $327.55 | $331.85 | $336.64 | $342.00 |
| 12.9% | $304.26 | $307.36 | $310.77 | $314.52 | $318.67 |
Peer Multiples
Simple comparable valuation cross-check using selected public-market peers.
6 selected peers were included in the valuation cross-check.
21.8x EV/EBITDA and 34.8x P/E.
$238.35 to $245.07, midpoint $241.71.
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Revision History
Pro keeps the revision trail for refreshed reports so changes in target price, rating, and assumptions are easy to inspect.
Unlock revision historyHow to Read the Valuation
Plain-English definitions for the main inputs and outputs.
The base-case valuation discounts forecast cash flows using a WACC of 10.9%. The cost of equity starts from a 10-year Treasury yield of 4.6% as of Jun 5, 2026. Higher discount rates reduce present value, while lower ones increase it.
After year five, the model uses a terminal growth rate of 2.5% to estimate continuing value. In the base case, terminal value is blended with an exit-multiple cross-check rather than relying on perpetuity growth alone.
Revenue starts from 24.2% and fades toward a steady-state growth rate of 3.3% under a compounder profile. The first 3 forecast years use analyst estimates where coverage is available.
Peer multiples anchor a market-based valuation range and help test whether the DCF output looks reasonable relative to similar businesses. The published target price currently uses a 75% DCF / 25% comparable blend, which is why it can differ from the DCF sensitivity grid.
Broadcom Inc. (AVGO)
Company Snapshot
- Sector: Technology
- Industry: Semiconductors
- Exchange: NASDAQ
- Current Price: $385.73
- Target Price: $327.22
- Recommendation: SELL
- Market Cap: $1.8T
Broadcom Inc. screens SELL with a blended target price of $327.22, versus a current price of $385.73 and modeled upside of -15.2%.
Investment Thesis
Broadcom Inc. screens as a SELL because the automated valuation stack points to -15.2% upside versus the current market price. The DCF carries most of the target price and is supported by a business that still compounds from a $63.9B revenue base while sustaining 40.6% EBIT margins.
Business Overview
Broadcom Inc. operates in semiconductors within the technology sector. The company is modeled as a US-listed business with revenue in USD and exchange exposure through NASDAQ. The current comparable set is anchored around ASML, MU, AMAT, QCOM, NVDA, ADI. The current report structure is built for equity research use cases: company snapshot, thesis, financial analysis, valuation, and risk framing.
Financial Analysis
Historical statements indicate a business with improving operating leverage and positive free cash flow generation. Our rules-based forecast extends that pattern over five years using normalized revenue growth, margin stabilization, capital intensity, and working capital behavior. DCF fair value lands at $355.72 per share, while the blended target price after applying comparable valuation support is $327.22. Comparable medians of 21.8x EV/EBITDA and 34.8x P/E across ASML, MU, AMAT, QCOM, NVDA, ADI frame a $238.35 to $245.07 fair value range.
Latest Reported Snapshot
| Metric | Value |
|---|---|
| Revenue | $63.9B |
| EBIT | $25.9B |
| EBITDA | $34.7B |
| Free Cash Flow | $26.9B |
| Diluted Shares | 4,853,000,000 |
DCF Valuation
| Metric | Value |
|---|---|
| Intrinsic Value / Share | $355.72 |
| Forecast Profile | compounder |
| Starting Growth | 24.2% |
| Steady-State Growth | 3.3% |
| Risk-Free Rate | 4.6% |
| Equity Risk Premium | 4.5% |
| WACC | 10.9% |
| Terminal Growth | 2.5% |
| Exit Multiple | 21.8x |
| Enterprise Value | $1.8T |
| Equity Value | $1.7T |
| Upside / Downside | -15.2% |
Comparable Valuation
| Metric | Value |
|---|---|
| Comparable Coverage | 6 peers |
| Peer Set Support | Included in cross-check |
| Median EV/EBITDA | 21.8x |
| Median P/E | 34.8x |
| Fair Value Low | $238.35 |
| Fair Value High | $245.07 |
| Fair Value Mid | $241.71 |
| Peer | EV/EBITDA | P/E |
|---|---|---|
| ASML | 27.4x | 36.8x |
| MU | 7.7x | 15.9x |
| AMAT | 19.3x | 26.6x |
| QCOM | 12.7x | 32.7x |
| NVDA | 31.4x | 37.8x |
| ADI | 24.2x | 51.1x |
Risks
Key risks remain deterministic rather than narrative-only. First, revenue growth could decelerate faster than the model fade path, especially if current market demand is cyclical. Second, margin normalization may prove too optimistic if price competition, mix shift, or incremental operating expense dilute returns. Third, valuation is sensitive to the discount rate: WACC at 10.9% and terminal growth at 2.5% are reasonable base assumptions, but even modest moves in either direction can materially shift intrinsic value.
Research Notes and Disclaimer
Important context around timing, methodology, and usage.
Published June 8, 2026. Market data is shown as of Jun 5, 2026 and financial statements run through Nov 2, 2025.
Valuation outputs are deterministic and rules-based. Narrative sections are generated from structured report data and should be read alongside the valuation tables and sensitivity analysis. The risk-free rate is sourced from cache:financial-modeling-prep.
This report is provided for information only and does not take into account your objectives, risk tolerance, or financial circumstances.
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