Broadcom Fair Value
AV
The fair market value of AVGO stock is 44.76 USD. Relative to the market price of 173.47 USD Broadcom is overvalued by 74.2%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
Broadcom Valuation
Current AVGO share ticker price is 173.47 USD.
The fair value level of 44.76 USD can be considered as an effective entry point for long-term investors to start investing in AVGO stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 74% higher its fair value
Current price is 86% higher its minimum value
Current price is 62% higher its maximum value
Market price:
AVGO stock is greatly overvalued
It means the current price may concern as a High Risk Entry Point
Broadcom Inc Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
55.1
2
Median P/E over 5 years
37.56
3
Minimum P/E over 5 years
20.8
4
Earning per share (last 12 months)
1.19 USD
Maximum value
1
x
4
=
65.67 USD
Fair value
2
x
4
=
44.76 USD
Minimum value
3
x
4
=
24.79 USD
Broadcom Inc price metrics
42.55
Annual return (geometric mean)
39.78
Risk (standard deviation) of returns
β
1.18
Beta (volatility compared to market)