FCF Yield
Higher than 21% of Technology sector peers
Updated 12h ago
Sector Performance
21th percentileAVGO
1.6%
Sector Median
3.0%
Sector Avg
2.1%
Deep Analysis
Free cash flow (FCF) yield tells you the percentage of a company’s share price that is backed by the cash it generates after expenses — a 1.6% yield means for every $100 invested, the company produces $1.60 in cash annually.
This 1.6% sits well below the technology sector median of 3.1%, placing Broadcom in the 21st percentile among its peers, indicating a low relative cash return. The metric has been perfectly stable over the past eight quarters, with year-over-year change of +0.0% and quarter-over-quarter change of +0.0%. A low FCF yield that is flat may signal limited immediate cash-flow-driven upside, but it also removes downside risk from deterioration in this metric. The stable level of 1.6% does not support the overall BULLISH verdict, as the yield remains substantially below the sector median; however, the verdict likely relies on other factors such as growth or margins.
Frequently Asked Questions
What does the FCF Yield tell investors about AVGO?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
How does AVGO's FCF Yield compare to its sector?
AVGO's FCF Yield of 1.6% compares to a Technology sector median of 3.0%, placing it in the 21th percentile.
Who are AVGO's closest peers by FCF Yield?
The closest Technology peers by FCF Yield include: APP (1.7%), MDB (1.7%), SNOW (1.7%), IAC (1.5%), DDOG (1.4%).
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
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1.6%
Sector Median
3.0%
Sector Avg
2.1%
How AVGO's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.