Broadcom Inc.AVGO
NASDAQ • Technology
$371.55
P/E
72.48
PEG
—
FCF Yield
—
Rev Growth YoY
+2522.0% YoY
Gross Margin
6793.0%
Health Score
6/10
D/E Ratio
0.80
Confidence
LOW
Business Snapshot
Broadcom Inc. is a leading semiconductor and infrastructure software company, designing and supplying a broad range of semiconductor devices with a focus on complex digital and mixed-signal complementary metal-oxide semiconductors, as well as radio frequency semiconductors. The company serves diversified end markets including data centre, networking, broadband, wireless, and enterprise software. Based on current pricing and the semiconductor sector context, Broadcom is firmly a large-cap technology company trading on the NASDAQ.
Financial Health
**Score: 6/10** The reported gross margin of 6,793% and net margin of 3,657% are almost certainly data artefacts or normalisation quirks tied to the extraordinary revenue and earnings growth figures — these numbers are not economically interpretable at face value and should be treated with caution. On the positive side, the debt/equity ratio of 0.8x is manageable, and the current ratio of 1.71x indicates the company can comfortably cover short-term obligations...
Risk Assessment
- **VALUATION: P/E of 72.48x is approximately 2.9x the sector average of 25x, leaving the stock highly exposed to any earnings disappointment.** - **DATA INTEGRITY: Gross margin of 6,793% and net margin of 3,657% are anomalous figures that obscure true profitability assessment and undermine financial modelling reliability.** - **CASH FLOW: Free cash flow is unavailable, making it impossible to assess capital generation capacity or validate the premium valuation through a yield or DCF framework.** - **TECHNICALS: A confirmed death cross pattern (50-day MA crossing below 200-day MA) is present, and MACD is bearish — the price is also below both moving averages, signalling near-term technical deterioration.** - **EARNINGS CONSISTENCY: AVGO beat earnings estimates in only 2 of the last 4 reported quarters, suggesting execution against elevated expectations has been inconsistent.** ---...