Broadcom: A Value And Growth Stock Alike

Jan. 22, 2023 4:14 AM ETBroadcom Inc. (AVGO)VMW27 Comments
Cavenagh Research profile picture
Cavenagh Research


  • Broadcom is a technology company that specializes in semiconductor and infrastructure software solutions.
  • Broadcom's fundamentals are levered to an increasing demand for data, which is supported by the increasing adoption of the Internet of Things, 5G, and cloud computing.
  • During the past 5 years, Broadcom's revenue expanded by a CAGR of close to 19%, jumping from $17.6 billion in FY 2017 to $33.2 billion in FY 2022.
  • During the trailing twelve months, Broadcom has distributed about $15 billion to shareholders, as compared to a market capitalization of less than $240 billion.
  • Personally, I value AVGO stock with a residual earnings model and calculate a fair implied share price of $692.65. AVGO is a 'Buy'.

Broadcom Expected To Beat Quarterly Earnings Expectations

Justin Sullivan


During the trailing twelve months, Broadcom (NASDAQ:AVGO) has distributed about $15 billion to shareholders, as compared to a market capitalization of less than $240 billion. In general, Broadcom is looking like a 'value' opportunity, trading at cheap multiples. This is surprising, however, as an analyst could

AVGO vs SPY 5y performance

Seeking Alpha

Broadcom overview

Broadcom Investor Presentation

Broadcom Revenue Split

Broadcom Investor Presentation

Broadcom M&A activity

Broadcom Investor Presentation

Broadcom financials

Broadcom Investor Presentation

AVGO valuation

Analyst Consensus EPS; Author's Calculation

AVGO valuation sensitivity table

Analyst Consensus EPS; Author's Calculation

This article was written by

Cavenagh Research profile picture
5y experience as an investment analyst for a major BB-Bank. Currently working towards the CFA charter. Passion for risk-assets (Growth, Contrarian, Emerging Market) ex-colleague and close friend of Investor Express

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Not financial advice.

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