AVGONEUTRAL

EV/EBITDA

50.6x

Higher than 86% of Technology sector peers

Updated 1946h ago

Sector Performance

86th percentile

AVGO

50.6x

Sector Median

16.9x

Sector Avg

42.5x

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Deep Analysis

Enterprise value to EBITDA (EV/EBITDA) measures how many years a company’s pre‑tax operating cash flow would take to pay off its total company value; Broadcom's current 50.6x is well above the sector median of 24.2x, placing it in the 76th percentile of Technology peers.

Both the year‑over‑year and quarter‑over‑quarter changes, as well as the eight‑quarter trend, are marked as not available (N/A), so no directional pattern can be inferred from this metric. A very high EV/EBITDA like 50.6x combined with no historical trend information suggests an expensive valuation relative to peers, raising the risk that the stock may be priced for perfection without recent data to confirm improving momentum. This elevated multiple typically implies an opportunity only if future growth justifies the premium, but the lack of trend data leaves that case unconfirmed. The high EV/EBITDA level contradicts the overall NEUTRAL verdict by indicating substantial valuation stress, though the absence of trend data tempers the signal.

Frequently Asked Questions

What does the EV/EBITDA tell investors about AVGO?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

How does AVGO's EV/EBITDA compare to its sector?

AVGO's EV/EBITDA of 50.6x compares to a Technology sector median of 16.9x, placing it in the 86th percentile.

Who are AVGO's closest peers by EV/EBITDA?

The closest Technology peers by EV/EBITDA include: GDDY (15.2x), ACLS (15.1x), ADBE (14.1x), AKAM (13.9x), CRM (12.4x).

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.