Broadcom Z Score vs. Net Income
| AVGO Stock | USD 1,311 33.38 2.48% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.39 | 0.6136 |
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| Net Profit Margin | 0.14 | 0.2454 |
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| Operating Profit Margin | 0.33 | 0.3103 |
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| Pretax Profit Margin | 0.26 | 0.2464 |
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| Return On Assets | 0.0768 | 0.0891 |
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| Return On Equity | 0.15 | 0.2696 |
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For Broadcom profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Broadcom to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Broadcom utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Broadcom's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Broadcom over time as well as its relative position and ranking within its peers.
Broadcom |
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 26.86 | 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.
Broadcom Net Income vs. Z Score Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Broadcom's current stock value. Our valuation model uses many indicators to compare Broadcom value to that of its competitors to determine the firm's financial worth. Broadcom is currently under evaluation in z score category among related companies. It is number one stock in net income category among related companies . At this time, Broadcom's Net Income is very stable compared to the past year.Comparative valuation analysis is a catch-all model that can be used if you cannot value Broadcom by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Broadcom's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Broadcom's earnings, one of the primary drivers of an investment's value.Broadcom Net Income vs. Z Score
Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
Broadcom |
| = | null |
To calculate a Z-Score, one would need to know a company's current working capital, its total assets and liabilities, and the amount of its latest earnings as well as earnings before interest and tax. Z-Scores can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area,' with scores of less than 1 indicating the highest probability of distress. Z Score is a used widely measure by financial auditors, accountants, money managers, loan processors, wealth advisers, and day traders. In the last 25 years, many financial models that utilize z-scores proved it to be successful as a predictor of corporate bankruptcy.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Broadcom |
| = | 14.08 B |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Broadcom Net Income Comparison
Broadcom is currently under evaluation in net income category among related companies.
Broadcom Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Broadcom, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Broadcom will eventually generate negative long term returns. The profitability progress is the general direction of Broadcom's change in net profit over the period of time. It can combine multiple indicators of Broadcom, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 186.3 M | 195.6 M | |
| Operating Income | 18.6 B | 19.6 B | |
| Income Before Tax | 17.4 B | 18.2 B | |
| Total Other Income Expense Net | 241.2 M | 253.3 M | |
| Net Income | 16.2 B | 17 B | |
| Income Tax Expense | 913.5 M | 959.2 M | |
| Net Income Applicable To Common Shares | 12.9 B | 13.6 B | |
| Net Income From Continuing Ops | 16.2 B | 17 B | |
| Interest Income | 615.2 M | 646 M | |
| Net Interest Income | -1.5 B | -1.5 B | |
| Non Operating Income Net Other | -48.6 M | -46.2 M | |
| Change To Netincome | 2.2 B | 2.3 B | |
| Net Income Per Share | 16.43 | 17.25 | |
| Income Quality | 2.04 | 1.17 | |
| Net Income Per E B T | 1.00 | 0.92 |
Broadcom Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Broadcom. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Broadcom position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Broadcom's important profitability drivers and their relationship over time.
Use Broadcom in pair-trading
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.Broadcom Pair Trading
Broadcom Pair Trading Analysis
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.Use Investing Themes to Complement your Broadcom position
In addition to having Broadcom in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Trending Equities. 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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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To fully project Broadcom's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Broadcom at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Broadcom's income statement, its balance sheet, and the statement of cash flows.