Broadcom Stock Alpha and Beta Analysis

AVGO
 Stock
  

USD 509.09  12.51  2.52%   

This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Broadcom. It also helps investors analyze the systematic and unsystematic risks associated with investing in Broadcom over a specified time horizon. Remember, high Broadcom's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation.
Please continue to Broadcom Backtesting, Broadcom Valuation, Broadcom Correlation, Broadcom Hype Analysis, Broadcom Volatility, Broadcom History and analyze Broadcom Performance.
  
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Please note that although Broadcom alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., DOW index.) So in this particular case, Broadcom did 0.11  better than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of Broadcom stock's relative risk over its benchmark. Broadcom has a beta of 1.31  . Let's try to break down what Broadcom's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Broadcom will likely underperform.
Broadcom Enterprise Value over EBIT is quite stable at the moment as compared to the past year. The company's current value of Enterprise Value over EBIT is estimated at 35.98. Enterprise Value over EBITDA is expected to rise to 19.75 this year, although Book Value per Share will most likely fall to 58.38.
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.

Broadcom Quarterly Book Value per Share

51.38

Share

Broadcom Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Broadcom market risk premium is the additional return an investor will receive from holding Broadcom long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Broadcom. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Broadcom's performance over market.
α0.11   β1.31
90 days against DJI

Broadcom expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Broadcom's Buy-and-hold return. Our buy-and-hold chart shows how Broadcom performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

Broadcom Market Price Analysis

Market price analysis indicators help investors to evaluate how Broadcom stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Broadcom shares will generate the highest return on investment. By understating and applying Broadcom stock market price indicators, traders can identify Broadcom position entry and exit signals to maximize returns.

Broadcom Return and Market Media

The median price of Broadcom for the period between Thu, Jul 1, 2021 and Sun, Jun 26, 2022 is 543.7 with a coefficient of variation of 10.82. The daily time series for the period is distributed with a sample standard deviation of 58.04, arithmetic mean of 536.65, and mean deviation of 50.71. The Stock received substential amount of media coverage during this period.
 Price Growth (%)  
      Timeline 
1
EPS Estimate07/28/2021
2
EPS Reported09/02/2021
3
Sale by Charlie Kawwas of 1000 shares of Broadcom09/10/2021
4
Financial Statements09/13/2021
5
Sale by Mark Brazeal of 9453 shares of Broadcom09/14/2021
6
Sale by Justine Lien of 340 shares of Broadcom09/15/2021
7
Sale by Harry You of 149 shares of Broadcom09/17/2021
8
Purchase by Fernandez Raul J of 151 shares of Broadcom09/21/2021
9
Purchase by Fernandez Raul J of 151 shares of Broadcom09/23/2021
10
Broadcom exotic insider transaction detected09/27/2021
11
Sale by Mark Brazeal of 3150 shares of Broadcom09/29/2021
12
Sale by Mark Brazeal of 3150 shares of Broadcom09/30/2021
13
Purchase by Fernandez Raul J of 152 shares of Broadcom10/01/2021
14
Sale by Harry You of 149 shares of Broadcom10/11/2021
15
EPS Estimate10/28/2021
16
Bona fide gift to Hock Tan of 37000 shares of Broadcom subje...11/12/2021
17
EPS Reported12/09/2021
18
Broadcom stock rallies more than 6 percent on aggressive pla...12/10/2021
19
Purchase by Fernandez Raul J of tradable shares of Broadcom12/16/2021
20
Payment of 3596 shares by Kirsten Spears of Broadcom subject...12/17/2021
21
Sale by Charlie Kawwas of 2000 shares of Broadcom12/27/2021
22
Broadcom exotic insider transaction detected01/11/2022
23
EPS Estimate01/31/2022
24
Apple, Broadcom successful in getting patent judgement throw...02/04/2022
25
Unclassified Event02/08/2022
26
Unclassified Event02/09/2022
27
Unclassified Event02/11/2022
28
EPS Reported03/03/2022
29
Purchase by Fernandez Raul J of tradable shares of Broadcom03/14/2022
30
Payment of 8121 shares by Kirsten Spears of Broadcom subject...03/17/2022
31
AVGO Stock Broadcom Stock Sets Up Multiple Buy Points - Inve...03/18/2022
32
Sale by Mark Brazeal of 11214 shares of Broadcom03/28/2022
33
Sale by Kirsten Spears of 2000 shares of Broadcom03/30/2022
34
Financial Statements03/31/2022
35
Filing04/04/2022
36
Nasdaq Bear Market 3 of the Safest Stocks to Buy on the Dip ...04/13/2022
37
Financial Statements04/14/2022
38
Financial Statements04/18/2022
39
How Netgears Revenue Revision Will Affect Broadcom, Qualcomm...04/19/2022
40
Better Tech Dividend Stock Broadcom or Cisco - Nasdaq04/26/2022
41
EPS Estimate04/27/2022
42
TD SYNNEX Secures Exclusive Symantec Cybersecurity Aggregato...05/06/2022
43
First Pacific Advisors Boosts Amazon and Netflix in 1st Quar...05/12/2022
44
EPS Reported05/26/2022
45
AVGO Better Buy Broadcom vs. Advanced Micro Devices - StockN...05/27/2022
46
Better Metaverse Stock Broadcom vs. Meta Platforms - The Mot...06/01/2022
47
Broadcom To Present At BofA Securities Global Technology Con...06/07/2022
48
When Times Are Tough, These 3 Mega-Caps Should Deliver the D...06/24/2022

About Broadcom Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all equity instruments such as Ford or other stocks, funds, and ETFs. Alpha measures the amount that position in Broadcom has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
 2015 2020 2021 2022 (projected)
Long Term Debt to Equity1.681.581.421.53
Interest Coverage2.334.565.245.38

Broadcom Upcoming Company Events

As portrayed in its financial statements, the presentation of Broadcom's financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Broadcom's leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of Broadcom's public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of Broadcom. Please utilize our Beneish M Score to check the likelihood of Broadcom's management manipulating its earnings.
Upcoming Quarterly Report3rd of March 2022
Next Financial Report2nd of June 2022
Next Fiscal Quarter End31st of January 2022
Next Fiscal Year End8th of December 2022
Last Quarter Report31st of October 2021
Last Financial Announcement31st of January 2021

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Please continue to Broadcom Backtesting, Broadcom Valuation, Broadcom Correlation, Broadcom Hype Analysis, Broadcom Volatility, Broadcom History and analyze Broadcom Performance. 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 Watchlist Optimization module to optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm.

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When running Broadcom 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 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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Broadcom technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Broadcom technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Broadcom trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...