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Is this Large Market Cap Stock target price reasonable for Broadcom Limited (NASDAQ:AVGO)?

The company in question is, Broadcom Limited (NASDAQ:AVGO) currently with a stock price of 176.04 (0.42% today). The market cap for Broadcom Limited is 69229.49, and is in the sector Technology, and Semiconductor – Broad Line industry. The target price for Broadcom Limited is 192.81. Currently Broadcom Limited is trading with a P/E of 231.94, and a forward P/E of 13.55. Average volume for Broadcom Limited is 2538.19 and so far today it is 1870600.

Performance in the last year for Broadcom Limited has been 53.43%. For EPS growth, Broadcom Limited has seen a growth of 327.70%, and is looking to grow in the next year to 18.65%. More long term stats show that EPS growth has been 24.00% over the last five years and could be 15.97% for the next five years. Broadcom Limited has seen sales growth quarter over quarter at 119.40%, with EPS growth quarter over quarter at -360.10%. The 20-day simple moving average is 8.51%, with the 200-day simple moving average coming to 20.67%.

Since the IPO date for Broadcom Limited on the 8/6/2009, Broadcom Limited has seen performance year to date to be 22.07%. With Broadcom Limited trading at 176.04, the dividend yield is 1.14%, and the EPS is 0.76.

So could Broadcom Limited, be undervalued? Well as said before P/E is 231.94. The PEG is 14.53, P/S is 7.79 and the P/B is at 3.5. The P/cash is 33.92, with P/free cash flow at 59.07.

Broadcom Limited ability to deal with debt shows that the current ratio is 2.5, and the quick ratio is 2. This is with long term debt/equity at 0.74, and total debt/equity at 0.76.

In terms of margins, Broadcom Limited has a gross margin of 43.90%, an operating margin of 2.60% and a profit margin of -2.40%.Payout ratio for Broadcom Limited is 279.90%. Return on assets come to -1.00% with return on investment coming to 18.10%.

Insider ownership for Broadcom Limited, is at 0.20% and institutional ownership comes to 93.30%. Outstanding shares are at 393.26. While shares float is 393.26. The float short is currently 0.86%, and short ratio is 1.33.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Peter Clarke

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