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Broadcom Inc. — Beer Score

AVGO · US Equity · Tech — Semiconductors / Infrastructure Software
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Market Price (indicative) · Mar 22, 2026
Reference price only. Not an official exchange feed.
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/ 100
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216% premium to fair value
Updated: Loading...·Model: DCF v1.0
Not investment advice · Model-based estimate
Estimated Value (Beer)
$103.00
--%
Est. Speculation Premium (Foam)
$0.00
--%
🍺 --% Est. Fundamental Value🫧 --% Est. Speculation
Track Score Alerts (Coming Soon) See Model Assumptions ↓

Key Financials

TTM
Revenue$51.6B
Net Income$5.9B
Free Cash Flow$20.0B
P/E Ratio32x
EPS (TTM)$5.60
Market Cap$846B
Total Debt$72.3B
Cash & Equiv.$9.8B

DCF Valuation

Model Estimate
$103
Est. intrinsic value (DCF model)
vs market price
↓
Calculating price premium...
WACC10.0%
Growth Rate (5yr)15%
Terminal Growth3%

Model output varies with assumptions (WACC, growth, margins). This is not a price target or investment recommendation.

What the Market Is Pricing In

Reverse DCF
29.9%
Implied annual FCF growth rate the
market is pricing into AVGO
↑
At the current price, the market is implying ~29.9% annual growth, versus our 15.0% base case.
Model Growth (5yr)15.0%
Implied Growth29.9%

Reverse DCF finds the growth rate needed to justify the current market price using the same WACC and terminal growth assumptions. Not a prediction.

Sensitivity Analysis

WACC × Growth

How the estimated intrinsic value changes with different WACC and growth assumptions.

Most scenarios suggest the stock trades above estimated intrinsic value.

WACC \ Growth 12% 15% 18%
8.5%$117$133$149
10.0%$91$103 ← base$116
11.5%$75$84$94

Each cell shows estimated intrinsic value per share. Green = above current price (undervalued scenario). Red = below current price (overvalued scenario). Center cell = base case.

Score History — 90 Days

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90d High
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Zone Changes
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Broadcom Inc. Stock Valuation — Beer Score Breakdown

Broadcom Inc.'s Beer Score shows what percentage of the stock price is backed by current fundamentals according to our DCF model. The remaining percentage represents an estimated speculation or growth premium.

How Beer Score Is Calculated for AVGO

We pull Broadcom Inc.'s latest SEC filings from EDGAR, run a DCF analysis using a 10.0% WACC and 15% revenue growth rate over 5 years with 3% terminal growth, then compare the resulting model estimate ($103) against the current market price. The Beer Score represents the ratio. Model output varies with assumptions. Learn more about our methodology →

DCF Model Notes

Broadcom generates exceptional free cash flow ($20B) with industry-leading EBITDA margins of 62%. AI revenue grew 220% year-over-year, driven by custom AI accelerators (XPUs) for hyperscalers. The VMware acquisition added $21.5B in infrastructure software revenue.

Important Information

Beer Score is an educational indicator, not investment advice. It measures the model-estimated gap between a stock's current market price and an estimated intrinsic value derived from public financial data. A low Beer Score does not mean "sell" and a high score does not mean "buy." Model output varies with assumptions (WACC, growth rate, terminal growth, margins).

Prices shown are indicative reference prices for educational purposes only and are not sourced from an official exchange feed. Data sources include SEC EDGAR filings, indicative market price data, and proprietary DCF models. Scores update daily after market close. For the full ranking of all stocks, visit the Beer Score Heatmap or read Today's Foam Report.

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About This Valuation

Why does Broadcom Inc. have a Beer Score of 32?
Broadcom Inc. (AVGO) scores 32 because the stock is currently trading approximately 216% above its estimated intrinsic value of $103. With $20.0B in annual free cash flow and $51.6B in revenue, the company's fundamentals fall well short of justifying the current market price of $325.17 per share. The Beer Score reflects that 32% of the price is backed by estimated fundamental value.
Is AVGO overvalued or undervalued?
Based on our DCF model, Broadcom Inc. appears significantly overvalued. The estimated intrinsic value of $103 compared to the current price of $325.17 carries a 68% speculation premium, meaning most of the stock price reflects expectations rather than current earnings. This is a model-based estimate using 10.0% WACC and 15% projected growth — not a buy or sell recommendation. The actual fair value depends on assumptions that may change with new earnings data or market conditions.
What assumptions drive the $103 intrinsic value?
The DCF model uses a 10.0% weighted average cost of capital and projects 15% annual revenue growth over five years. Terminal growth is set at 3%. Starting from $20.0B in current free cash flow, these assumptions produce an estimated intrinsic value of $103 per share. The model is most sensitive to the growth rate and WACC inputs — small changes in either significantly alter the output.
What could change Broadcom Inc.'s Beer Score?
Broadcom's score reflects the VMware integration bet. If cross-selling enterprise software to its chip customer base succeeds, revenue growth could exceed projections. However, customer pushback on VMware licensing changes and potential subscriber churn pose downside risk. Semiconductor cyclicality and heavy debt from the VMware acquisition add leverage risk during downturns.

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