What is AVGO's intrinsic value?

TickerWorth's blended fair value for Broadcom Inc. (AVGO) is $222.70 per share, versus a market price of $328.75 (48% above fair value).

Is AVGO overvalued or undervalued?

On our blended fair value AVGO looks overvalued vs fair value at $328.75. This is an educational estimate, not advice.

What discount rate is used for AVGO?

A WACC of 12.3% and a terminal growth rate of 2.5%.

Is Broadcom stock undervalued?

TickerWorth's fair value for Broadcom Inc. (AVGO) is $222.70 against a market price of $328.75. Our read: 48% above fair value. This is a model estimate, not investment advice.

Broadcom (AVGO) DCF valuation and fair value

Our fair value for Broadcom Inc. (AVGO) is $222.70, built on a 12.3% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.

Broadcom (AVGO) insider trading

The most recent insider filing (SEC Form 4) for Broadcom Inc. (AVGO): SAMUELI HENRY, Director, open-market sale on 2026-09-23. The latest filings are listed on this page. A disclosure, not a signal to trade.

AVGO · Intrinsic value

Is Broadcom Inc. (AVGO) overvalued or undervalued?

Name: Broadcom Inc. (AVGO) DCF intrinsic value
Creator: TickerWorth

Broadcom Inc. (AVGO) trades at the delayed market price of $328.75 a share. That price already implies revenue growth of more than 25%/yr. TickerWorth's fair value is $222.70 a share (48% above fair value), as of Oct 19, 2026. It is a model estimate, and every input behind it is sourced below.

Model by Miraaj Patel · generated from a hand-researched model · Updated Oct 19, 2026 · How these pages are made

Open full AVGO analysis

Is AVGO overvalued?

Fair value: $222.70
Market price: $328.75
Downside to fair value: 32.3%
Verdict: 48% above fair value

Price as of 19 Oct 2026, 13:16 UTC · Prices are delayed.

Fair value against the delayed market price: 48% above fair value.

Reverse DCF: Today's price implies revenue growth of more than 25%/yr. Above about 25% a year the reverse-DCF stops being informative. It solves for revenue growth alone — holding margins, capital intensity and the forecast horizon fixed — so a price well above our cash-flow model's value has nowhere to go but growth, and the solver returns a rate the model can't reconcile. Read it as "the price implies growth we can't justify", not as a forecast.

What is AVGO's TickerWorth Score?

C51/100

Middle of the pack — real strengths and real weaknesses

Compared with Technology companies in US

Its strongest point: a profitable, high-quality business. Its weakest: looks expensive on the numbers.

Value · 28 of 100
Cheaper than 28% of Technology companies in US
Price vs worth · 24 of 100
Quality · 89 of 100
More profitable than 89% of Technology companies in US
Financial health · 47 of 100
Financially stronger than 47% of Technology companies in US
Growth · 90 of 100
Growing faster than 90% of Technology companies in US
Momentum · 17 of 100
Outperformed 17% of Technology companies in US over the past year

Confidence: High confidence · Scored 19 Oct 2026, 13:16 UTC

Get the Undervalued Company of the Week.

Where the numbers come from

Hand-researched model

What the modeller flagged

THE DISCOUNT RATE IS DOING MOST OF THE WORK. WACC is 12.27% because the published beta is 1.457 against a 5.24% Treasury. On these cash flows the price implies a beta of ~0.51 (WACC ~7.7%). Beta 1.0 alone gives $235.98. The disagreement with the market is as much about how risky these cash flows are as about how large they become.
YEARS 2-5 ARE BELOW MANAGEMENT'S OWN OUTLOOK, DELIBERATELY. Broadcom guided FY2027 AI revenue ~$115B and FY2028 ~$230B on the Q3 call. This model credits ~93% and ~70% of those AI figures. Taking management's path in full (Y2 57.7%, Y3 70%) gives $230.68; adding 20%/10% growth in FY2029-30 on top gives $251.34. No plausible operating path alone closes the gap at this discount rate.
TERMINAL VALUE IS ~70% OF ENTERPRISE VALUE, implying ~8.2x FY2030 EBITDA. Low for this business by market standards, and mechanical: 2.5% perpetual growth at a ~12.3% discount rate. The market is paying for growth well past FY2030 that a five-year house DCF does not see; the price implies ~7.9% growth forever.
FCF VS REPORTED. Model Year-1 FCF is ~$37.0B against trailing-twelve-month reported FCF of $39.4B (-6%), within the 20% line. But Broadcom's FY2026 reported FCF will likely run well above the model (Q1-Q3 alone was $31.9B): reported FCF adds back ~$8.3B of SBC (kept as an expense here), adds back ~$8B of amortization (not added back here) and enjoys a ~6.6% cash tax rate (17% here). Working capital in the model (~$6.3B) is LIGHTER than the $9.0B Broadcom actually absorbed in Q1-Q3.
OFF-BALANCE-SHEET EXPOSURE NOT IN NET DEBT. ~$29B maximum XPV lease backstop and up to $42B of customer convertible notes (the latter ~$8.60/share if fully drawn). Press reports on 2026-10-02 describe a further ~$60B debt package arranged with banks and Blackstone for Anthropic chips; Broadcom's share of any new backstop is not yet in a filing. If a frontier-lab customer defaulted these would become real claims on equity value. Not modelled — sized and flagged.
CYCLICALITY NOT MODELLED AS A DECLINE. Broadcom's own risk factors say the AI upturn 'may not be sustainable due to a market correction, the perceived existence of an AI spending "bubble" or other factors'. The forecast plateaus (12%, 5%) rather than falls. A single -10% digestion year in FY2029 takes the value to ~$147 and would make the site publish this as a range only.
SBC of ~$8.3B in FY2026 (~7.9% of revenue, falling to ~4.5% by FY2030 in this build) stays expensed inside GAAP EBIT; dilution is captured by the weighted-diluted count, which has been flat because buybacks roughly offset issuance.

AVGO DCF valuation: what the price assumes

At a recent price of $328.75, Broadcom Inc. (AVGO) trades 48% above TickerWorth's blended fair value of $222.70 per share — a discounted-cash-flow model cross-checked against peer multiples and asset value — meaning the market currently prices AVGO overvalued vs our estimate of what the business is intrinsically worth. Our fair value sits below the market, an implied -32.3% move to close the gap if the business performs in line with our assumptions. This is an educational model, not a price target or a recommendation — the value moves with the inputs, which you can test yourself using the WACC slider below.

Read the full reasoning

One of the lenses behind that blended figure is a discounted-cash-flow model, which on its own values AVGO at about $176.96 per share. The rest of this page walks through that DCF — its assumptions, reverse-DCF and discount-rate sensitivity — because it is the auditable anchor of the blend.

The valuation discounts Broadcom Inc.'s projected free cash flows at a weighted-average cost of capital (WACC) of 12.3%, with a long-run terminal growth rate of 2.5%. About 70% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.

Running the DCF in reverse — solving for the growth the current price already assumes — AVGO would need sustained revenue growth of more than 25%/yr to justify today's price. We don't quote a precise figure here, because past about 25% a year the reverse-DCF stops being informative: it solves for revenue growth alone, holding margins, capital intensity and the forecast horizon fixed, so a price well above our fair value has nowhere to go but growth. The honest reading is that the price implies growth this model can't reconcile — not that we forecast it.

Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, AVGO's modeled DCF value ranges from about $140.65 to $237.97 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.

How to read this page: the DCF fair value is what Broadcom Inc. would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of AVGO's intrinsic value. Figures update as new filings and prices come in.

Every input behind AVGO's DCF

Input	Value	Source
Base-year revenueAVGO FY2025 10-K for the year ended 2025-11-02 (accession 0001730168-25-000121, filed 2025-12-18): us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, fiscal year ended 2025-11-02: $63,887M, +24% on FY2024's $51,574M. Semiconductor solutions $36,858M, infrastructure software $27,029M. UNCHANGED as the base — the DCF grows this by forecast.revenue_growth, so FY2026 belongs in the forecast. CROSS-CHECK: Q1-Q3 FY2026 revenue was already $71,089M, more than all of FY2025, and Q3 alone was $29,591M (+86% YoY). The base year is not representative of the business today; Year 1 carries the step-change.	$63,887,000,000	AVGO FY2025 10-K for the year ended 2025-11-02 (accession 0001730168-25-000121, filed 2025-12-18): us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, fiscal year ended 2025-11-02: $63,887M, +24% on FY2024's $51,574M. Semiconductor solutions $36,858M, infrastructure software $27,029M. UNCHANGED as the base — the DCF grows this by forecast.revenue_growth, so FY2026 belongs in the forecast. CROSS-CHECK: Q1-Q3 FY2026 revenue was already $71,089M, more than all of FY2025, and Q3 alone was $29,591M (+86% YoY). The base year is not representative of the business today; Year 1 carries the step-change.
Base EBIT marginAVGO FY2025 10-K for the year ended 2025-11-02 (accession 0001730168-25-000121, filed 2025-12-18): GAAP operating income $25,484M / revenue $63,887M = 39.89%. This is AFTER $8,062M of acquisition-related intangible amortization (12.6% of revenue — $6,031M in cost of revenue, $2,031M in opex, overwhelmingly the VMware stack), $7,568M of stock-based compensation and $667M of restructuring. CROSS-CHECK: Q1-Q3 FY2026 GAAP operating income $35,306M / $71,089M = 49.7%; Q3 alone 53.9%. The jump is operating leverage on AI revenue plus amortization shrinking as a share of a much larger revenue base — not a change of method.	39.9%	AVGO FY2025 10-K for the year ended 2025-11-02 (accession 0001730168-25-000121, filed 2025-12-18): GAAP operating income $25,484M / revenue $63,887M = 39.89%. This is AFTER $8,062M of acquisition-related intangible amortization (12.6% of revenue — $6,031M in cost of revenue, $2,031M in opex, overwhelmingly the VMware stack), $7,568M of stock-based compensation and $667M of restructuring. CROSS-CHECK: Q1-Q3 FY2026 GAAP operating income $35,306M / $71,089M = 49.7%; Q3 alone 53.9%. The jump is operating leverage on AI revenue plus amortization shrinking as a share of a much larger revenue base — not a change of method.
Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast	66% → 50% → 35% → 12% → 5%	ESTIMATEAssumption — TickerWorth's 5-year explicit forecast
Risk-free rateUS 10Y Treasury constant maturity (FRED DGS10): 5.24% on 2026-10-01, the latest published observation. Shared by every model in this tracker.	5.2%	US 10Y Treasury constant maturity (FRED DGS10): 5.24% on 2026-10-01, the latest published observation. Shared by every model in this tracker.
BetaYahoo Finance / yfinance published beta (5Y monthly): Published 5Y-monthly beta 1.457, used AS PUBLISHED — no normalization. There is an argument for normalizing down (the 60-month window is dominated by the 2023-26 AI re-rating and its drawdowns) and one for normalizing up (top five end customers now ~55% of revenue per the 10-Q, and Broadcom's own risk factors call the AI upturn possibly unsustainable). Neither is strong enough to override the measured number. It is the biggest single lever in the file: beta 1.20 gives $206.35, 1.00 gives $235.98. Under these cash flows the price implies a beta of ~0.51.	1.46	Yahoo Finance / yfinance published beta (5Y monthly): Published 5Y-monthly beta 1.457, used AS PUBLISHED — no normalization. There is an argument for normalizing down (the 60-month window is dominated by the 2023-26 AI re-rating and its drawdowns) and one for normalizing up (top five end customers now ~55% of revenue per the 10-Q, and Broadcom's own risk factors call the AI upturn possibly unsustainable). Neither is strong enough to override the measured number. It is the biggest single lever in the file: beta 1.20 gives $206.35, 1.00 gives $235.98. Under these cash flows the price implies a beta of ~0.51.
Terminal growthESTIMATEAssumption — house default: House default 2.5% (roughly long-run nominal GDP), kept for comparability. It is a hard step down from Year 5's 5%, and that step is where this model most disagrees with the market: the price implies terminal growth of ~7.9% under these cash flows. 3.0% adds ~$7.66/share. Must remain < WACC of 12.27%.	2.5%	ESTIMATEAssumption — house default: House default 2.5% (roughly long-run nominal GDP), kept for comparability. It is a hard step down from Year 5's 5%, and that step is where this model most disagrees with the market: the price implies terminal growth of ~7.9% under these cash flows. 3.0% adds ~$7.66/share. Must remain < WACC of 12.27%.
Diluted sharesAVGO Q3 FY2026 10-Q for the quarter ended 2026-08-02 (accession 0001730168-26-000080, filed 2026-09-10): Q3 FY2026 weighted-average diluted shares 4,887M (Q1-Q3: 4,884M; FY2025: 4,853M). Diluted rather than the 4,774M outstanding because that is how this model carries SBC dilution. Buybacks of $8,450M in Q1-Q3 FY2026 (25M shares retired) roughly offset issuance — the count is flat, not falling. Broadcom's non-GAAP diluted count (4,937M) is higher still; not used.	4,887M	AVGO Q3 FY2026 10-Q for the quarter ended 2026-08-02 (accession 0001730168-26-000080, filed 2026-09-10): Q3 FY2026 weighted-average diluted shares 4,887M (Q1-Q3: 4,884M; FY2025: 4,853M). Diluted rather than the 4,774M outstanding because that is how this model carries SBC dilution. Buybacks of $8,450M in Q1-Q3 FY2026 (25M shares retired) roughly offset issuance — the count is flat, not falling. Broadcom's non-GAAP diluted count (4,937M) is higher still; not used.
Market priceDelayed quote · as of 2026-10-19 13:16 UTC	$328.75	Delayed quote · as of 2026-10-19 13:16 UTC

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What does Broadcom Inc. do?

What does it do?

Broadcom Inc. designs and manufactures semiconductor devices and infrastructure software solutions. The company operates through two segments: Semiconductor Solutions (offering networking, wireless connectivity, and storage products) and Infrastructure Software, serving customers internationally with 33,000 employees.

How does it make money?

Broadcom generates revenue by selling semiconductor products including ethernet switching, wireless RF devices, storage controllers, and broadband solutions. The company reported total revenue of $89.1 billion, with a gross margin of 75.5% and operating margin of 54.3%.

Is it financially healthy?

Broadcom shows strong financial health with a net profit margin of 42.9% and a current ratio of 2.5, indicating solid short-term liquidity. The company carries moderate debt with a debt-to-equity ratio of 0.60.

Who at AVGO filed insider trades?

Recent insider filings for Broadcom Inc.
Date	Insider	Relationship	What happened	Value	Filing
23 Sept 2026	SAMUELI HENRY	Director	Open-market sale	$8,025,864.00	Form 4 for SAMUELI HENRY (opens sec.gov in a new tab)
23 Sept 2026	SAMUELI HENRY	Director	Open-market sale	$8,158,450.30	Form 4 for SAMUELI HENRY (opens sec.gov in a new tab)
23 Sept 2026	SAMUELI HENRY	Director	Open-market sale	$3,586,582.22	Form 4 for SAMUELI HENRY (opens sec.gov in a new tab)
23 Sept 2026	SAMUELI HENRY	Director	Open-market sale	$2,488,955.94	Form 4 for SAMUELI HENRY (opens sec.gov in a new tab)
23 Sept 2026	SAMUELI HENRY	Director	Open-market sale	$1,634,623.20	Form 4 for SAMUELI HENRY (opens sec.gov in a new tab)
23 Sept 2026	SAMUELI HENRY	Director	Open-market sale	$777,195.76	Form 4 for SAMUELI HENRY (opens sec.gov in a new tab)

A disclosure, not a signal to trade. Source: SEC EDGAR (Form 4). Older filings and the 90-day buying-and-selling read are part of Pro. See plans

Common questions

What is AVGO's intrinsic value?
TickerWorth's blended fair value for Broadcom Inc. (AVGO) is $222.70 per share, versus a market price of $328.75 (48% above fair value).
Is AVGO overvalued or undervalued?
On our blended fair value AVGO looks overvalued vs fair value at $328.75. This is an educational estimate, not advice.
What discount rate is used for AVGO?
A WACC of 12.3% and a terminal growth rate of 2.5%.
Is Broadcom stock undervalued?
TickerWorth's fair value for Broadcom Inc. (AVGO) is $222.70 against a market price of $328.75. Our read: 48% above fair value. This is a model estimate, not investment advice.
Broadcom (AVGO) DCF valuation and fair value
Our fair value for Broadcom Inc. (AVGO) is $222.70, built on a 12.3% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into Broadcom stock?
Today's price implies revenue growth of more than 25%/yr. Above about 25% a year the reverse-DCF stops being informative. It solves for revenue growth alone — holding margins, capital intensity and the forecast horizon fixed — so a price well above our cash-flow model's value has nowhere to go but growth, and the solver returns a rate the model can't reconcile. Read it as "the price implies growth we can't justify", not as a forecast. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $328.75. A model estimate, not investment advice.
Broadcom (AVGO) insider trading
The most recent insider filing (SEC Form 4) for Broadcom Inc. (AVGO): SAMUELI HENRY, Director, open-market sale on 2026-09-23. The latest filings are listed on this page. A disclosure, not a signal to trade.