What is Broadcom Inc. (AVGO) DCF Fair Value and Intrinsic Value in 2026?

Broadcom Inc. (AVGO) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is Broadcom Inc.'s historical Return on Invested Capital (ROIC) and Moat Rating?

Broadcom Inc. operates in the Technology sector (Semiconductors) with an economic moat rating of WIDE. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is Broadcom Inc.'s financial health rating and Piotroski F-Score?

Broadcom Inc.'s balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor Broadcom Inc. (AVGO) for quarterly SEC filing thesis breaks?

LocalAlpha audits Broadcom Inc.'s 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksAVGO

AVGO

Broadcom Inc.Technology / SemiconductorsINTACT

Broadcom Inc. designs, develops, and supplies various semiconductor devices and infrastructure software solutions internationally. The company operates in two segments: Semiconductor Solutions and Infrastructure Software. The company offers networking connectivity, such as custom silicon solutions, ethernet switching & routing, ethernet NIC controllers, physical layer devices, and fiber optic components; wireless device connectivity, including RF semiconductor devices, connectivity solutions, custom touch controllers, and inductive charging ASICS; servers and storage system solutions, such as PCIE switches, SAS & raid products, fibre channel products, and HDD & SSD solutions; broadband solutions, includes set-top box, and broadband access; and industrial. The company also offers a private cloud software portfolio, including the VMware Cloud Foundation, Edge, vSphere foundation, telco cloud platform, private AI, live recovery, application networking and security, application development and data services; mainframe software, such as AIOPS & automation, database & data management, DEVX & DEVOPS, cybersecurity & compliance management, beyond code programs, foundational & open mainframe solutions; cybersecurity, such as endpoint, network, information, application security, and identity & access management; enterprise software; and fc san management. Its products are used in various applications in enterprise and data center networking, including artificial intelligence networking and connectivity, home connectivity, set-top boxes, broadband access, telecommunication equipment, wireless device and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. Broadcom Inc. was founded in 1961 and is headquartered in Palo Alto, California.

Share Price

$363.04

52W: $289.96 - $495

DCF Fair Value

$197.27

-84% Premium

Thesis Hub

P/E (TTM)

46.4x

ROIC

40.7%

Operating Margin

54.3%

FCF Yield

1.8%

Debt / Equity

0.6x

Piotroski Score

7/9

Altman Z-Score

2.91

Market Cap

$1733B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($197.27)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$197.27

MOS Buy Target (-25%)

$147.95

Valuation Overlays: DCF Fair Value ($197.27) 25% MOS Buy Target ($147.95) Revised Graham ($276.33) Graham Number ($60.65)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$363.04

DCF Fair Value

$197.26

-84% Premium

Starting Free Cash Flow ($M)$30,596M

$100M$30,596M (Reported)$76,490M

Stage 1 Growth (Years 1-5)18.0%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)$35,400M

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$396.1B

PV of Terminal Value

$581.0B

Implied Enterprise Value

$977.1B

Implied Equity Value

$941.7B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$36,103	$42,602	$50,270	$59,319	$69,996	$73,146	$76,438	$79,877	$83,472	$87,228
Present Value (PV)	$33,122	$35,857	$38,818	$42,023	$45,493	$43,615	$41,814	$40,088	$38,433	$36,846

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-498.6% Premium

$60.65

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $7.83BVPS: $20.88

Revised Graham Formula-31.4% Premium

$276.33

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings1.7% Yield

$6.09 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $29.1BYield: 1.7%

Reverse DCF: Market Growth Expectation

HIGH BARRIER

19.5% CAGR (Next 10 Yrs)

At the current price of $363.04, the market is assuming the business will compound Free Cash Flow at 19.5% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

⚠ High expectations: Leaves minimal margin of safety for operational hiccups.

Autonomous Thesis Underwriting

Surveil AVGO with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Broadcom Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 54.3% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: Broadcom Inc. (AVGO) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Broadcom Inc..

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Broadcom Inc. has an estimated DCF intrinsic fair value of $197.27 per share compared to its current market price of $363.04. This represents an estimated 84.0% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $60.65.