Broadcom Stock Return On Equity
| AVGO Stock | USD 1,257 7.63 0.61% |
Broadcom fundamentals help investors to digest information that contributes to Broadcom's financial success or failures. It also enables traders to predict the movement of Broadcom Stock. The fundamental analysis module provides a way to measure Broadcom's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Broadcom stock.
| Last Reported | Projected for Next Year | ||
| Return On Equity | 0.27 | 0.15 |
Broadcom | Return On Equity |
Broadcom Company Return On Equity Analysis
Broadcom's Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Current Broadcom Return On Equity | 0.25 |
Most of Broadcom's fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Broadcom is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Broadcom Return On Equity Driver Correlations
Understanding the fundamental principles of building solid financial models for Broadcom is extremely important. It helps to project a fair market value of Broadcom Stock properly, considering its historical fundamentals such as Return On Equity. Since Broadcom's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Broadcom's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Broadcom's interrelated accounts and indicators.
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Broadcom Return On Equity Historical Pattern
Today, most investors in Broadcom Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Broadcom's growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's return on equity growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Broadcom return on equity as a starting point in their analysis.
Broadcom Return On Equity |
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For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
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Broadcom Total Stockholder Equity
Total Stockholder Equity |
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Based on the latest financial disclosure, Broadcom has a Return On Equity of 0.2475. This is 102.06% lower than that of the Semiconductors & Semiconductor Equipment sector and 86.1% lower than that of the Information Technology industry. The return on equity for all United States stocks is 179.84% lower than that of the firm.
Broadcom Return On Equity Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Broadcom's direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Broadcom could also be used in its relative valuation, which is a method of valuing Broadcom by comparing valuation metrics of similar companies.Broadcom is currently under evaluation in return on equity category among related companies.
Broadcom ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Broadcom's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Broadcom's managers, analysts, and investors.Environment Score | Governance Score | Social Score |
Broadcom Fundamentals
| Return On Equity | 0.25 | ||||
| Return On Asset | 0.0765 | ||||
| Profit Margin | 0.30 % | ||||
| Operating Margin | 0.32 % | ||||
| Current Valuation | 532.63 B | ||||
| Shares Outstanding | 463.42 M | ||||
| Shares Owned By Insiders | 2.03 % | ||||
| Shares Owned By Institutions | 80.45 % | ||||
| Number Of Shares Shorted | 5.48 M | ||||
| Price To Earning | 22.94 X | ||||
| Price To Book | 8.86 X | ||||
| Price To Sales | 16.03 X | ||||
| Revenue | 35.82 B | ||||
| Gross Profit | 24.95 B | ||||
| EBITDA | 20.8 B | ||||
| Net Income | 14.08 B | ||||
| Cash And Equivalents | 9.98 B | ||||
| Cash Per Share | 24.63 X | ||||
| Total Debt | 39.23 B | ||||
| Debt To Equity | 1.89 % | ||||
| Current Ratio | 2.32 X | ||||
| Book Value Per Share | 59.22 X | ||||
| Cash Flow From Operations | 18.09 B | ||||
| Short Ratio | 1.39 X | ||||
| Earnings Per Share | 26.94 X | ||||
| Price To Earnings To Growth | 1.56 X | ||||
| Target Price | 1428.55 | ||||
| Number Of Employees | 20 K | ||||
| Beta | 1.27 | ||||
| Market Capitalization | 578.9 B | ||||
| Total Asset | 72.86 B | ||||
| Retained Earnings | 2.68 B | ||||
| Working Capital | 13.44 B | ||||
| Current Asset | 7.12 B | ||||
| Current Liabilities | 3.08 B | ||||
| Annual Yield | 0.02 % | ||||
| Five Year Return | 3.06 % | ||||
| Net Asset | 72.86 B | ||||
| Last Dividend Paid | 19.7 |
About Broadcom Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Broadcom's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Broadcom using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Broadcom based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with Broadcom
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Broadcom position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Broadcom will appreciate offsetting losses from the drop in the long position's value.Moving together with Broadcom Stock
| 0.84 | KLAC | KLA Tencor Earnings Call Tomorrow | PairCorr |
| 0.9 | LRCX | Lam Research Corp Financial Report 24th of July 2024 | PairCorr |
Moving against Broadcom Stock
| 0.68 | COMM | CommScope Holding Buyout Trend | PairCorr |
| 0.57 | AAPL | Apple Inc Earnings Call Next Week | PairCorr |
| 0.55 | LPL | LG Display Financial Report 20th of May 2024 | PairCorr |
| 0.55 | PANW | Palo Alto Networks Financial Report 28th of May 2024 | PairCorr |
| 0.52 | MX | MagnaChip Semiconductor Earnings Call Next Week | PairCorr |
The ability to find closely correlated positions to Broadcom could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Broadcom when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Broadcom - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Broadcom to buy it.
The correlation of Broadcom is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Broadcom moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Broadcom moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Broadcom can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Broadcom Piotroski F Score and Broadcom Altman Z Score analysis. To learn how to invest in Broadcom Stock, please use our How to Invest in Broadcom guide.Note that the Broadcom information on this page should be used as a complementary analysis to other Broadcom's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
Complementary Tools for Broadcom Stock analysis
When running Broadcom's price analysis, check to measure Broadcom's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Broadcom is operating at the current time. Most of Broadcom's value examination focuses on studying past and present price action to predict the probability of Broadcom's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Broadcom's price. Additionally, you may evaluate how the addition of Broadcom to your portfolios can decrease your overall portfolio volatility.
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Is Broadcom's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Broadcom. If investors know Broadcom will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Broadcom listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 1.881 | Dividend Share 19.7 | Earnings Share 26.94 | Revenue Per Share 91.771 | Quarterly Revenue Growth 0.164 |
The market value of Broadcom is measured differently than its book value, which is the value of Broadcom that is recorded on the company's balance sheet. Investors also form their own opinion of Broadcom's value that differs from its market value or its book value, called intrinsic value, which is Broadcom's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Broadcom's market value can be influenced by many factors that don't directly affect Broadcom's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Broadcom's value and its price as these two are different measures arrived at by different means. Investors typically determine if Broadcom is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Broadcom's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.