Broadcom Inc. (AVGO)

FairStock Score: 71/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Broadcom is a high-quality but not cheap business. In fiscal Q3 2026, the quarter ended 2026-08-02, revenue was $29.6B, net income $13.1B, and diluted EPS $2.68; that compares with revenue $16.0B, net income $4.1B, and EPS $0.85 in fiscal Q3 2025. Sequential filed data show revenue rising from $19.3B in fiscal Q1 2026 to $22.2B in fiscal Q2 2026 and $29.6B in fiscal Q3 2026, with net income moving from $7.3B to $9.3B to $13.1B. That is exceptional operating momentum and supports a meaningful position in custom silicon, networking, and infrastructure software. Financial health looks solid: FairStock's calculated debt-to-equity is 0.60, Altman Z-score 11.95, Piotroski 7/9, and trailing free cash flow $39.4B, a 2.5% FCF yield at the 2026-10-16 close. Returns are strong too, with FairStock ROE 44.25% and ROCE 15.37%. But Graham would flinch at the price: at the 2026-10-16 close, FairStock's P/E is 41.99, P/B 15.74, EV/EBITDA 32.08, and Graham Number $60.65, a margin of safety of -467.73%. The PEG of 0.20 is attractive only if that growth persists; the Lynch category is CYCLICAL - Semiconductors, so earnings follow the economic cycle. I see a fine business with powerful momentum, but the current price already discounts a lot of continued success.

In plain English: Broadcom designs semiconductors and infrastructure software used in networking, wireless, and connectivity products. In the latest filed quarter, sales and profits rose sharply and cash generation is large, so the operating business looks strong. At the 2026-10-16 close, the price looks expensive versus its stated accounting value and conservative fair-value measures, even though growth has been rapid.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-16 close · note generated 2026-10-20 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-08-02) · fiscal Q2 2026 10-Q (period ended 2026-05-03) · fiscal Q1 2026 10-Q (period ended 2026-02-01) · fiscal Q3 2025 10-Q (period ended 2025-08-03) · FY2025 10-K (period ended 2025-11-02) · FY2024 10-K (period ended 2024-11-03) · FY2023 10-K (period ended 2023-10-29)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer