Broadcom Stock To $463?

Our multi-factor assessment suggests that it may be time to buy more shares of AVGO stock. We have, overall, a positive view of the stock, and a price of $463 may not be out of reach. We believe there is nothing to fear in AVGO stock given its overall Very Strong operating performance and financial condition. Hence, despite its Very High valuation, the stock appears Attractive but Volatile.

Below is our assessment:

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Let’s get into details of each of the assessed factors but before that, for quick background: With $1.7 Tril in market cap, Broadcom provides semiconductor devices and software solutions, including set-top box system-on-chips, cable, DSL, and passive optical networking products across semiconductor and infrastructure software segments.

[1] Valuation Looks Very High

This table highlights how AVGO is valued vs broader market. For more details see: AVGO Valuation Ratios

[2] Growth Is Very Strong

• Broadcom has seen its top line grow at an average rate of 24.0% over the last 3 years
• Its revenues have grown 28% from $47 Bil to $60 Bil in the last 12 months
• Also, its quarterly revenues grew 22.0% to $16 Bil in the most recent quarter from $13 Bil a year ago.

This table highlights how AVGO is growing vs broader market. For more details see: AVGO Revenue Comparison

[3] Profitability Appears Very Strong

• AVGO last 12 month operating income was $23 Bil representing operating margin of 39.0%
• With cash flow margin of 42.4%, it generated nearly $25 Bil in operating cash flow over this period
• For the same period, AVGO generated nearly $19 Bil in net income, suggesting net margin of about 31.6%

This table highlights how AVGO profitability vs broader market. For more details see: AVGO Operating Income Comparison

[4] Financial Stability Looks Strong

• AVGO Debt was $64 Bil at the end of the most recent quarter, while its current Market Cap is $1.7 Tril. This implies Debt-to-Equity Ratio of 3.8%
• AVGO Cash (including cash equivalents) makes up $11 Bil of $166 Bil in total Assets. This yields a Cash-to-Assets Ratio of 6.5%

[5] Downturn Resilience Is Moderate

AVGO saw an impact slightly better than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• AVGO stock fell 36.7% from a high of $67.43 on 27 December 2021 to $42.71 on 14 October 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 18 May 2023
• Since then, the stock increased to a high of $385.98 on 29 October 2025 , and currently trades at $351.94

 
2020 Covid Pandemic

• AVGO stock fell 48.3% from a high of $32.47 on 12 February 2020 to $16.79 on 18 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 4 August 2020

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read AVGO Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

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