NASDAQ · Technology

Broadcom Inc.

AVGO · Semiconductors

$412.46

▼ -8.94 (-2.12%)

Data cached · refreshes every 10 min

Mr. Market is currently offering Broadcom Inc. at $412.46.

The business passes 4 of 7 of Graham's defensive criteria — adequate but not exceptional.

Overall Grade

Defensive

Enterprising

Profitability A

Gross Profit Margin 67.8%

Operating Margin 40.8%

Net Income Margin 36.2%

Fin. Health C

Years to Pay Off Debt 2.8 yrs

Working Capital vs Long-Term Debt -$48.9B

Working Capital $13.1B

Valuation F

Margin of Safety 0.0%

Price-to-Book 24.02x

Cash Flow A

Free Cash Flow $26.9B

CapEx % of Net Income 2.7%

Owner Earnings $32.5B

4/7

Graham Score

Enterprising

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $1,952.3B

Enterprise Value $2,046.5B

P/E (TTM) 80.22

Dividend Yield 0.59%

Exchange NASDAQ

Key Margins

Gross Profit 67.8%

Operating Margin 40.8%

Net Margin 36.2%

Company Info

Sector Technology

Industry Semiconductors

Employees 33000

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Broadcom Inc. at $412.46.

The business passes 4 of 7 of Graham's defensive criteria — adequate but not exceptional.

At $412.46, the stock trades at a 861% premium to its Graham Number of $42.93. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: This stock is better suited for Graham's Enterprising investor — one willing to devote time and skill to security selection.

About Broadcom Inc.

Broadcom Inc. designs, develops, and supplies various semiconductor devices and infrastructure software solutions internationally. The company operates in two segments: Semiconductor Solutions and Infrastructure Software. The company offers networking connectivity, such as custom silicon solutions, ethernet switching & routing, ethernet NIC controllers, physical layer devices, and fiber optic components; wireless device connectivity, including RF semiconductor devices, connectivity solutions, custom touch controllers, and inductive charging ASICS; servers and storage system solutions, such as PCIE switches, SAS & raid products, fibre channel products, and HDD & SSD solutions; broadband solutions, includes set-top box, and broadband access; and industrial. The company also offers a private cloud software portfolio, including the VMware Cloud Foundation, Edge, vSphere foundation, telco cloud platform, private AI, live recovery, application networking and security, application development and data services; mainframe software, such as AIOPS & automation, database & data management, DEVX & DEVOPS, cybersecurity & compliance management, beyond code programs, foundational & open mainframe solutions; cybersecurity, such as endpoint, network, information, application security, and identity & access management; enterprise software; and fc san management. Its products are used in various applications in enterprise and data center networking, including artificial intelligence networking and connectivity, home connectivity, set-top boxes, broadband access, telecommunication equipment, wireless device and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. Broadcom Inc. was founded in 1961 and is headquartered in Palo Alto, California.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022	2021
Gross Profit %	67.8% ▲	63.0%	68.9%	66.5%	N/A
Operating Margin %	40.8% ▲	29.1%	45.9%	43.0%	N/A
Net Income %	36.2% ▲	11.4%	39.3%	34.6%	N/A
Diluted EPS	4.77 ▲	1.23	3.30	2.65	N/A

Balance Sheet Highlights

Metric	2025	2024	2023	2022	2021
Total Assets	$171.1B	$165.6B	$72.9B	$73.2B	N/A
Total Debt	$65.1B ↓	$67.6B	$39.2B	$39.5B	N/A
Working Capital	$13.1B ▲	$2.9B	$13.4B	$11.5B	N/A
Years to Pay Debt	2.82	11.46	2.79	3.44	N/A

Cash Flow Highlights

Metric	2025	2024	2023	2022	2021
Free Cash Flow	$26.9B ▲	$19.4B	$17.6B	$16.3B	N/A
Owner Earnings	$32.5B	$16.5B	$18.4B	$16.9B	N/A
CapEx % of Net Income	2.7%	9.3%	3.2%	3.7%	N/A

Income Statement

	2025	2024	2023	2022	2021
Tax Effect Of Unusual Items	-127,680	-584,010	-15,611	-16,950
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	35,322,000	25,424,000	20,787,000	19,381,000
Total Unusual Items	-608,000	-1,545,000	-233,000	-226,000
Total Unusual Items Excluding Goodwill	-608,000	-1,545,000	-233,000	-226,000
Net Income From Continuing Operation Net Minority Interest	23,126,000	6,168,000	14,082,000	11,495,000
Reconciled Depreciation	8,775,000	10,010,000	3,835,000	4,984,000
Reconciled Cost Of Revenue	13,849,000	12,299,000	8,688,000	7,636,000
EBITDA	34,714,000	23,879,000	20,554,000	19,155,000
EBIT	25,939,000	13,869,000	16,719,000	14,171,000
Net Interest Income	-2,863,000	-3,492,000	-1,087,000	-1,637,000
Interest Expense	3,210,000	3,953,000	1,622,000	1,737,000
Interest Income	347,000	461,000	535,000	100,000
Normalized Income	23,606,320	7,128,990	14,299,389	11,704,050
Net Income From Continuing And Discontinued Operation	23,126,000	5,895,000	14,082,000	11,495,000
Total Expenses	37,812,000	36,578,000	19,368,000	18,921,000
Total Operating Income As Reported	25,484,000	13,463,000	16,207,000	14,225,000
Diluted Average Shares	4,853,000	4,778,000	4,270,000	4,230,000
Basic Average Shares	4,712,000	4,624,000	4,150,000	4,090,000
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	23,126,000	5,895,000	14,082,000	11,223,000
Net Income Common Stockholders	23,126,000	5,895,000	14,082,000	11,223,000
Preferred Stock Dividends				272,000	299,000
Net Income	23,126,000	5,895,000	14,082,000	11,495,000
Net Income Including Noncontrolling Interests	23,126,000	5,895,000	14,082,000	11,495,000
Net Income Discontinuous Operations	0	-273,000	0	0
Net Income Continuous Operations	23,126,000	6,168,000	14,082,000	11,495,000
Tax Provision	-397,000	3,748,000	1,015,000	939,000
Pretax Income	22,729,000	9,916,000	15,097,000	12,434,000
Other Income Expense	-483,000	-1,588,000	-267,000	-211,000
Other Non Operating Income Expenses	125,000	-43,000	-34,000	15,000
Special Income Charges	-591,000	-1,533,000	-244,000	-57,000
Restructuring And Mergern Acquisition	591,000	1,533,000	244,000	57,000
Gain On Sale Of Security	-17,000	-12,000	11,000	-169,000
Net Non Operating Interest Income Expense	-2,863,000	-3,492,000	-1,087,000	-1,637,000
Interest Expense Non Operating	3,210,000	3,953,000	1,622,000	1,737,000
Interest Income Non Operating	347,000	461,000	535,000	100,000
Operating Income	26,075,000	14,996,000	16,451,000	14,282,000
Operating Expense	17,219,000	17,513,000	8,239,000	7,813,000
Depreciation Amortization Depletion Income Statement	2,031,000	3,244,000	1,394,000	1,512,000
Depreciation And Amortization In Income Statement	2,031,000	3,244,000	1,394,000	1,512,000
Amortization	2,031,000	3,244,000	1,394,000	1,512,000
Amortization Of Intangibles Income Statement	2,031,000	3,244,000	1,394,000	1,512,000
Research And Development	10,977,000	9,310,000	5,253,000	4,919,000
Selling General And Administration	4,211,000	4,959,000	1,592,000	1,382,000
Gross Profit	43,294,000	32,509,000	24,690,000	22,095,000
Cost Of Revenue	20,593,000	19,065,000	11,129,000	11,108,000
Total Revenue	63,887,000	51,574,000	35,819,000	33,203,000
Operating Revenue	63,887,000	51,574,000	35,819,000	33,203,000

Balance Sheet

	2025	2024	2023	2022	2021
Preferred Shares Number					4,000
Ordinary Shares Number	4,741,000	4,686,000	4,140,000	4,180,000
Share Issued	4,741,000	4,686,000	4,140,000	4,180,000
Net Debt	48,958,000	58,179,000	24,991,000	27,040,000
Total Debt	65,136,000	67,566,000	39,229,000	39,515,000
Tangible Book Value	-48,782,000	-70,778,000	-23,532,000	-28,016,000
Invested Capital	146,428,000	135,205,000	63,168,000	62,165,000
Working Capital	13,059,000	2,898,000	13,442,000	11,452,000
Net Tangible Assets	-48,782,000	-70,778,000	-23,532,000	-28,016,000
Capital Lease Obligations	0	39,000	49,000	59,000
Common Stock Equity	81,292,000	67,678,000	23,988,000	22,709,000
Preferred Stock Equity					27,000
Total Capitalization	143,276,000	133,960,000	61,605,000	61,762,000
Total Equity Gross Minority Interest	81,292,000	67,678,000	23,988,000	22,709,000
Stockholders Equity	81,292,000	67,678,000	23,988,000	22,709,000
Gains Losses Not Affecting Retained Earnings	218,000	207,000	207,000	-54,000
Other Equity Adjustments	218,000	207,000	207,000	-54,000
Retained Earnings	9,761,000	0	2,682,000	1,604,000
Additional Paid In Capital	71,308,000	67,466,000	21,095,000	21,159,000
Capital Stock	5,000	5,000	4,000	0
Common Stock	5,000	5,000	4,000	0
Total Liabilities Net Minority Interest	89,800,000	97,967,000	48,873,000	50,540,000
Total Non Current Liabilities Net Minority Interest	71,286,000	81,270,000	41,468,000	43,488,000
Other Non Current Liabilities	1,423,000	1,503,000	657,000	774,000
Tradeand Other Payables Non Current	1,628,000	3,669,000	2,792,000	3,229,000
Non Current Deferred Liabilities	6,251,000	9,803,000	398,000	410,000
Non Current Deferred Revenue	3,547,000	5,100,000	299,000	410,000
Non Current Deferred Taxes Liabilities	2,704,000	4,703,000	99,000
Long Term Debt And Capital Lease Obligation	61,984,000	66,295,000	37,621,000	39,075,000
Long Term Capital Lease Obligation	0	13,000	4,000	22,000
Long Term Debt	61,984,000	66,282,000	37,617,000	39,053,000
Current Liabilities	18,514,000	16,697,000	7,405,000	7,052,000
Other Current Liabilities	663,000	1,143,000	312,000	408,000
Current Deferred Liabilities	9,469,000	9,395,000	2,487,000	2,931,000
Current Deferred Revenue	9,469,000	9,395,000	2,487,000	2,931,000
Current Debt And Capital Lease Obligation	3,152,000	1,271,000	1,608,000	440,000
Current Capital Lease Obligation	0	26,000	45,000	37,000
Current Debt	3,152,000	1,245,000	1,563,000	403,000
Other Current Borrowings	3,152,000	1,245,000	1,563,000	403,000
Pensionand Other Post Retirement Benefit Plans Current	2,129,000	1,971,000	935,000	1,202,000
Payables And Accrued Expenses	3,101,000	2,917,000	2,063,000	2,071,000
Current Accrued Expenses	620,000	535,000	380,000	393,000
Interest Payable	620,000	535,000	380,000	393,000
Payables	2,481,000	2,382,000	1,683,000	1,678,000
Total Tax Payable	921,000	720,000	473,000	680,000
Accounts Payable	1,560,000	1,662,000	1,210,000	998,000
Total Assets	171,092,000	165,645,000	72,861,000	73,249,000
Total Non Current Assets	139,519,000	146,050,000	52,014,000	54,745,000
Other Non Current Assets	6,915,000	5,073,000	2,340,000	1,797,000
Goodwill And Other Intangible Assets	130,074,000	138,456,000	47,520,000	50,725,000
Other Intangible Assets	32,273,000	40,583,000	3,867,000	7,111,000
Goodwill	97,801,000	97,873,000	43,653,000	43,614,000
Net PPE	2,530,000	2,521,000	2,154,000	2,223,000
Accumulated Depreciation	-4,896,000	-4,504,000	-4,024,000	-3,604,000
Gross PPE	7,426,000	7,025,000	6,178,000	5,827,000
Construction In Progress	78,000	57,000	63,000	63,000
Machinery Furniture Equipment	5,656,000	5,246,000	4,739,000	4,413,000
Buildings And Improvements	1,488,000	1,518,000	1,181,000	1,156,000
Land And Improvements	204,000	204,000	195,000	195,000
Current Assets	31,573,000	19,595,000	20,847,000	18,504,000
Other Current Assets	457,000	764,000	364,000	341,000
Prepaid Assets	518,000	1,391,000	743,000	864,000
Inventory	2,270,000	1,760,000	1,898,000	1,925,000
Finished Goods	682,000	504,000	676,000	780,000
Work In Process	1,280,000	970,000	901,000	966,000
Raw Materials	308,000	286,000	321,000	179,000
Receivables	12,150,000	6,332,000	3,653,000	2,958,000
Other Receivables	5,005,000	1,916,000	499,000
Accounts Receivable	7,145,000	4,416,000	3,154,000	2,958,000
Allowance For Doubtful Accounts Receivable					-2,597,000
Gross Accounts Receivable					4,668,000
Cash Cash Equivalents And Short Term Investments	16,178,000	9,348,000	14,189,000	12,416,000
Cash And Cash Equivalents	16,178,000	9,348,000	14,189,000	12,416,000

Cash Flow

	2025	2024	2023	2022	2021
Free Cash Flow	26,914,000	19,414,000	17,633,000	16,312,000
Repurchase Of Capital Stock	-6,310,000	-12,392,000	-7,685,000	-8,455,000
Repayment Of Debt	-18,478,000	-19,608,000	-403,000	-2,361,000
Issuance Of Debt	15,666,000	39,954,000	0	1,935,000
Issuance Of Capital Stock	221,000	190,000	122,000	114,000
Capital Expenditure	-623,000	-548,000	-452,000	-424,000
Interest Paid Supplemental Data	2,672,000	3,250,000	1,503,000	1,386,000
Income Tax Paid Supplemental Data	2,589,000	3,155,000	1,782,000	908,000
End Cash Position	16,178,000	9,348,000	14,189,000	12,416,000
Beginning Cash Position	9,348,000	14,189,000	12,416,000	12,163,000
Changes In Cash	6,830,000	-4,841,000	1,773,000	253,000
Financing Cash Flow	-20,127,000	-1,733,000	-15,623,000	-15,816,000
Cash Flow From Continuing Financing Activities	-20,127,000	-1,733,000	-15,623,000	-15,816,000
Net Other Financing Charges	-84,000	-63,000	-12,000	-17,000
Cash Dividends Paid	-11,142,000	-9,814,000	-7,645,000	-7,032,000
Net Common Stock Issuance	-6,089,000	-12,202,000	-7,563,000	-8,341,000
Common Stock Payments	-6,310,000	-12,392,000	-7,685,000	-8,455,000
Common Stock Issuance	221,000	190,000	122,000	114,000
Net Issuance Payments Of Debt	-2,812,000	20,346,000	-403,000	-426,000
Net Long Term Debt Issuance	-2,812,000	20,346,000	-403,000	-426,000
Long Term Debt Payments	-18,478,000	-19,608,000	-403,000	-2,361,000
Long Term Debt Issuance	15,666,000	39,954,000	0	1,935,000
Investing Cash Flow	-580,000	-23,070,000	-689,000	-667,000
Cash Flow From Continuing Investing Activities	-580,000	-23,070,000	-689,000	-667,000
Net Other Investing Changes	92,000	-10,000	-66,000	3,000
Net Investment Purchase And Sale	-349,000	-19,000	-118,000	0
Sale Of Investment	248,000	156,000	228,000	200,000
Purchase Of Investment	-597,000	-175,000	-346,000	-200,000
Net Business Purchase And Sale	300,000	-22,493,000	-53,000	-246,000
Sale Of Business	300,000	3,485,000	0	0
Purchase Of Business	0	-25,978,000	-53,000	-246,000
Net PPE Purchase And Sale	-623,000	-548,000	-452,000	-424,000
Sale Of PPE					4,000
Purchase Of PPE	-623,000	-548,000	-452,000	-424,000
Operating Cash Flow	27,537,000	19,962,000	18,085,000	16,736,000
Cash Flow From Continuing Operating Activities	27,537,000	19,962,000	18,085,000	16,736,000
Change In Working Capital	-8,500,000	-4,637,000	-1,643,000	-1,654,000
Change In Other Working Capital	-5,155,000	-7,235,000	-1,692,000	-78,000
Change In Payables And Accrued Expense	-118,000	121,000	209,000	-79,000
Change In Payable	-118,000	121,000	209,000	-79,000
Change In Account Payable	-118,000	121,000	209,000	-79,000
Change In Inventory	-510,000	150,000	27,000	-627,000
Change In Receivables	-2,717,000	2,327,000	-187,000	-870,000
Changes In Account Receivables	-2,717,000	2,327,000	-187,000	-870,000
Other Non Cash Items	438,000	831,000	141,000	312,000
Stock Based Compensation	7,568,000	5,741,000	2,171,000	1,533,000
Deferred Tax	-4,008,000	1,965,000	-501,000	-34,000
Deferred Income Tax	-4,008,000	1,965,000	-501,000	-34,000
Depreciation Amortization Depletion	8,775,000	10,010,000	3,835,000	4,984,000
Depreciation And Amortization	8,775,000	10,010,000	3,835,000	4,984,000
Amortization Cash Flow	8,201,000	9,417,000	3,333,000	4,455,000
Amortization Of Intangibles	8,201,000	9,417,000	3,333,000	4,455,000
Depreciation	574,000	593,000	502,000	529,000
Operating Gains Losses	138,000	157,000		100,000	198,000
Net Income From Continuing Operations	23,126,000	5,895,000	14,082,000	11,495,000

These metrics estimate what Broadcom Inc. is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$42.93

Margin of Safety

Market Cap ÷ Company Value

1.76

P/B Ratio

24.02

Warren's Owner Earnings

$32.5B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

4/7 — Enterprising Investor

✅ Adequate Size

$63.9B

vs > $1.5B revenue

❌ Strong Financial Condition

1.71x

vs Current Ratio > 2.0x

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

✅ Dividend Record

0.59%

vs Uninterrupted dividends

✅ Earnings Growth

+79.8% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

80.2x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

24.02x P/B (P/E×P/B: 1927.2)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-12.30

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$61.19

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022	2021
Capital Expenditure % of Net Income	2.7%	9.3%	3.2%	3.7%	N/A
Repurchase of Capital Stock	-$6.3B	-$12.4B	-$7.7B	-$8.5B	N/A
Free Cash Flow	$26.9B ▲	$19.4B ▲	$17.6B ▲	$16.3B •	N/A •
Warren's Owner Earnings	$32.5B	$16.5B	$18.4B	$16.9B	N/A

Peers & Industry Comparison

Semiconductors — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
AVGO	$412.46	$1,952.3B	80.22	67.8%	36.2%	$63.9B
NVDA NVIDIA Corporation	$197.32	$4,796.0B	40.3	71.1%	55.6%	$215.9B
AMD Advanced Micro Devices, Inc.	$343.44	$560.0B	132.1	52.5%	12.5%	$34.6B
INTC Intel Corporation	$96.67	$485.8B	N/A	37.2%	-5.9%	$53.8B
QCOM QUALCOMM Incorporated	$169.11	$178.2B	18.2	54.8%	22.3%	$44.5B

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

1.97%

Low — management has little skin in the game

Return on Equity (ROE)

28.4%

Excellent — management generates strong returns on equity

Return on Assets (ROA)

13.5%

Strong — management uses assets efficiently

Share Buybacks (Latest Year)

$6.3B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

-3.6% YoY

Debt is declining — management is deleveraging

Leadership Team

Hock Tan

President, CEO & Executive Director

Age 73

Pay: $2,926,926

0.013% of net income

Kirsten Spears

CFO & Chief Accounting Officer

Age 61

Pay: $1,027,632

0.004% of net income

Charlie Kawwas Ph.

President of Semiconductor Solutions

Age 54

Pay: $2,093,876

0.009% of net income

Jill Turner

Vice President of Human Resources

Top Institutional Holders

Institution	% Owned	Shares
Vanguard Group Inc	10.20%	482,707,302
Blackrock Inc.	8.02%	379,894,948
State Street Corporation	4.01%	190,084,351
Capital International Investors	3.00%	141,864,077
Capital World Investors	2.60%	123,257,172
FMR, LLC	2.60%	123,186,236
Geode Capital Management, LLC	2.35%	111,277,280
JPMORGAN CHASE & CO	1.98%	93,758,850

Risk Analysis

Beta (Market Risk)

1.44

Moderate volatility — moves slightly more than market

Short Interest

1.2% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.83x

Conservative balance sheet — low financial risk

Current Ratio

1.90x

Adequate liquidity

52-Week Price Range

Low: $195.94 Current: $412.46 High: $429.31

Currently at 93% of 52-week range

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