AVGONEUTRAL

Return on Equity (ROE)

28.4%

Higher than 72% of Technology sector peers

Updated 1945h ago

Sector Performance

72th percentile

AVGO

28.4%

Sector Median

8.2%

Sector Avg

2.4%

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Deep Analysis

Return on Equity (ROE) measures how much profit Broadcom generates for each dollar of shareholder equity—28.4% means the company earns $0.284 for every $1 of equity.

This is above the Technology sector median of 25.4%, placing AVGO in the 57th percentile among its peers. The trend is stable: ROE has held exactly at 28.4% over the last eight quarters, with no change year-over-year (YoY) or quarter-over-quarter (QoQ). The combination of a level above the sector median and a flat trend suggests consistent profitability without recent improvement or deterioration, offering a low-risk profile but also limited upside catalyst from this metric. This stability supports the overall NEUTRAL verdict: the metric is in line with sector norms, providing neither a clear bullish signal nor a red flag to alter the neutral stance.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about AVGO?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does AVGO's Return on Equity (ROE) compare to its sector?

AVGO's Return on Equity (ROE) of 28.4% compares to a Technology sector median of 8.2%, placing it in the 72th percentile.

Who are AVGO's closest peers by Return on Equity (ROE)?

The closest Technology peers by Return on Equity (ROE) include: AMBA (-12.8%), WIX (-13.8%), SMAR (-17.3%), U (-20.1%), UCTT (-22.5%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.