Broadcom Inc. AVGO

Name: AVGO Crucible Score
Creator: Kaladin Capital Intelligence

TechnologySemiconductorsNASDAQ📅 Scored March 7, 2026

Price at analysis: $318.81

Crucible Score

60.5

C+

Quality × Value Composite

KQI — Quality

76.0

B+

Fundamental Quality Index

KVI — Value

38.4

D-

Valuation Attractiveness Index

Crucible Verdict — AVGO

Broadcom Inc. (AVGO) presents a stark quality-versus-value disconnect, with strong fundamentals (86 financial quality, 92% earnings beat rate) undermined by rich valuation metrics that earn just a 38.4 value score. The semiconductor giant's diversified portfolio and Hock Tan's performance-driven leadership support the premium, but AVGO trades closer to bull-case levels than its base fair value suggests.

— Kal, Kaladin Capital Intelligence

◆ KQI Quality Dimensions

Financial Quality

86.5

Growth Profile

86.1

Moat Durability

62.5

Management Effectiveness

71.7

Diversification & Resilience

75.2

Market Position

73.0

Weakest dimension: Moat Durability (62.5)

◆ KVI Value Dimensions

DCF Margin of Safety

55.6

FCF Yield & Cash Returns

30.1

Relative Valuation

22.2

Growth-Adjusted Value

36.2

Historical Valuation

38.3

Macro Context

31.7

◆ DCF Valuation Scenarios

Bear Case

$218.50

Base Case

$340.75

Bull Case

$502.30

Price at Analysis

$318.81

Scenario	Fair Value	Rev CAGR (5yr)	Terminal Margin	WACC
🔴 Bear	$218.50	8.0%	38.0%	11.2%
🟢 Base	$340.75	12.0%	42.0%	10.4%
🟢 Bull	$502.30	16.0%	46.0%	9.8%

Key Assumptions: AVGO's revenue grew from ~$27.5B to ~$63.9B over 5 years driven by the VMware acquisition and AI semiconductor demand; base case assumes 12% revenue CAGR as acquisition synergies normalize and AI tailwinds persist, with operating margins stabilizing around 42%. Tax rate normalized to 12% reflecting AVGO's international structure, while capex remains very low at ~1.2% of revenue consistent with the fabless/asset-light model. WACC calculated using CAPM with 5.2% ERP for base, adjusted +/-70bps for bear/bull to reflect uncertainty around AI demand sustainability and integration execution.

◆ Financial Snapshot

Profitability

Gross Margin67.1%

Operating Margin40.9%

Net Margin36.6%

ROIC14.2%

ROE24.2%

Balance Sheet

Balance SheetCR: 1.90

Cash ConversionFCF/EPS: 1.16x

Capital IntensityCapex/Rev: 1.0%

Altman Z-Score11.62 (Safe)

Piotroski F-Score6/9 (Good)

Growth

Revenue CAGR23.5% CAGR

Earnings CAGR36.1% CAGR

Growth ConsistencyCV: 0.61

Segment Breadth2/2 growing (100%)

Quarterly TrendRev↑, Margin↑, WC↓

Earnings CredibilityConsistent Beater

◆ Revenue Breakdown — FY2025

By Segment

Semiconductor Solutions57.7%

Infrastructure Software42.3%

By Geography

Asia Pacific56.2%

Americas29.6%

EMEA14.2%

Total Revenue

$63.9B

Fiscal Year 2025

◆ Analyst Consensus & Leadership

Analyst Price Targets

Avg Target (Last Quarter)$448.17

Analysts Covering (Quarter)18

Avg Target (Last Year)$404.43

Analysts (Year)47

Leadership & Governance

CEOHock Tan · 18 years

CEO Ownership1.9%

Compensation98% performance-based

Insider ActivityBuying

Capital AllocationROIC 14.2% vs WACC 3.9%

Earnings Beat Rate92% (19/22)

◆ Company Profile

Broadcom, Inc. is a global technology company, which designs, develops and supplies semiconductor and infrastructure software solutions.

CEO

Hock E. Tan

Employees

37000

Headquarters

Palo Alto, CA, US

IPO Date

August 6, 2009

Exchange

NASDAQ

Website

broadcom.com

◆ Related Companies in Our Universe

Other Technology companies scored by the Crucible:

ADBE81.8A-NICE80.7A-DECK79.9A-INTU79.9A-EXEL78.3A-MTCH78.2A-TTD78.0B+

Methodology All Scores Crucible Briefs Performance @KaladinCI

Analysis conducted March 7, 2026 based on most recent SEC filings. Updated quarterly, after new SEC filings.

Point-in-time fundamental analysis. Not investment advice. Scores reflect company quality and valuation at time of analysis and may not reflect current market conditions.