Broadcom Inc Intrinsic Value Calculation – BROADCOM INC Reports Third Quarter Earnings for FY2023
October 20, 2023
🌥️Earnings Overview
On August 31 2023, BROADCOM INC ($NASDAQ:AVGO) reported their financials for the third quarter of FY2023 concluded on July 31 2023. There was a 5.0 % rise in total revenue from the same quarter of the prior year, amounting to USD 8.9 billion, and net income also increased 7.5% to USD 3.3 billion.
Stock Price
The strong results were driven by a combination of increased demand for the company’s products and services, higher average selling prices and new product launches, such as the company’s 5G radio frequency solutions. Additionally, the company also reported cost savings from restructuring initiatives, which were also a key factor in driving profitability. Overall, BROADCOM INC has had a very successful third quarter and looks well-positioned to continue to deliver impressive results in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Broadcom Inc. More…
| Total Revenues | Net Income | Net Margin |
| 35.45k | 13.87k | 40.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Broadcom Inc. More…
| Operations | Investing | Financing |
| 17.84k | -693 | -15.07k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Broadcom Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 71.59k | 49.52k | 53.5 |
Key Ratios Snapshot
Some of the financial key ratios for Broadcom Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.2% | 63.0% | 46.2% |
| FCF Margin | ROE | ROA |
| 49.0% | 46.4% | 14.3% |
Analysis – Broadcom Inc Intrinsic Value Calculation
As GoodWhale, we recently performed an extensive analysis of BROADCOM INC‘s wellbeing. Our proprietary Valuation Line revealed that the intrinsic value of a single BROADCOM INC share is around $643.7. In comparison, the stock is currently being traded at $922.9 – this means it is overvalued by 43.4%. We believe that investors should monitor and carefully assess the stock’s performance in the upcoming days, in order to make the most informed decision possible. More…
Peers
Since its inception in 1991, Broadcom Inc has been a leading provider of semiconductor solutions. Its competitors, Qualcomm Inc, NVIDIA Corp, and Qorvo Inc, have all tried to keep up with Broadcom’s innovation and technology. While Qualcomm and NVIDIA have been able to maintain a strong presence in the market, Qorvo has struggled to keep up.
– Qualcomm Inc ($NASDAQ:QCOM)
Qualcomm Inc. is an American multinational semiconductor and telecommunications equipment company that designs and markets wireless telecommunications products and services. It has a market cap of 132.13B as of 2022 and a Return on Equity of 65.09%. The company was founded in 1985 and is headquartered in San Diego, California. Qualcomm is a leading provider of wireless technology and services for the mobile industry. It offers a comprehensive portfolio of products and services that enable mobile devices to connect to the Internet, including chipsets, modem and router technologies, and software and services.
– NVIDIA Corp ($NASDAQ:NVDA)
Nvidia is an American technology company that designs graphics processing units (GPUs) for the gaming and professional markets, as well as system on a chip units (SoCs) for the mobile computing and automotive market.
Nvidia’s market cap is currently $336.08B, with a ROE of 20.03%. The company has seen strong growth in recent years, driven by demand for its GPUs in the gaming market. Nvidia is also expanding into new markets such as autonomous vehicles and artificial intelligence.
– Qorvo Inc ($NASDAQ:QRVO)
Qorvo Inc is a company that provides radio frequency (RF) solutions for mobile, infrastructure, and defense applications. It has a market cap of 8.88B as of 2022 and a Return on Equity of 14.5%. The company’s products include power amplifiers, filters, and switches.
Summary
Investors reacted positively to BROADCOM INC‘s earnings report for the third quarter of FY2023, released on August 31, 2023. Total revenue increased by 5.0% to $8.9 billion, while net income rose by 7.5% to $3.3 billion compared to the same quarter the year prior. This was seen in the stock price which moved up the same day as the report was released. Considering these strong figures, investors are advised to take a closer look at BROADCOM INC as a potential investment opportunity, as it appears to have solid fundamentals and positive growth potential.
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