How to buy Broadcom shares | AVGO historical share price and analysis

How to buy Broadcom shares

Own Broadcom shares in just a few minutes.

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Broadcom Inc (AVGO) is a leading semiconductors business with stocks listed in the US. It opened the day at US$455.1 after a previous close of US$459.79. During the day the price has varied from a low of USD449 to a high of USD461.13. The latest price was USD455.37 (25 minute delay). Broadcom is listed on the NASDAQ. All prices are listed in US Dollars.

How to buy shares in Broadcom

  1. Compare share trading platforms. To buy shares in a US company from Australia you'll need to find a trading platform that offers access to US stock markets. If you're just starting out, look for a platform with low brokerage and foreign exchange fees.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
  3. Search for Broadcom. Find the share by name or ticker symbol: AVGO. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Broadcom reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. Weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of Broadcom, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Broadcom. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

Broadcom share price

Use our graph to track the performance of AVGO stocks over time.

Broadcom shares at a glance

Information last updated 2021-04-22.
OpenUS$455.1
HighUS$461.13
LowUS$449
CloseUS$455.37
Previous closeUS$459.79
Change US$-4.42
Change % -0.9613%
Volume 1,616,810
Information last updated 2021-04-22.
52-week rangeUS$245.8413 - US$491.2996
50-day moving average US$467.2323
200-day moving average US$431.5129
Target priceUS$512.85
PE ratio 53.1734
Dividend yield US$13.7 (3%)
Earnings per share (TTM) US$8.647

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The value of your investments can fall as well as rise and you may get back less than you invested. Past performance is no indication of future results.

Is it a good time to buy Broadcom stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

Broadcom price performance over time

Historical closes compared with the last close of $455.37

1 week (2021-04-15) -5.13%
1 month (2021-03-19) -4.02%
3 months (2021-01-22) -2.08%
6 months (2020-10-22) 21.96%
1 year (2020-04-22) 75.16%
2 years (2019-04-22) 44.56%
3 years (2018-04-20) 92.04%
5 years (2016-04-22) 202.91%

Is Broadcom under- or over-valued?

Valuing Broadcom stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Broadcom's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Broadcom's P/E ratio

Broadcom's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 53x. In other words, Broadcom shares trade at around 53x recent earnings.

That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.

Broadcom's PEG ratio

Broadcom's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.317. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Broadcom's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Broadcom's EBITDA

Broadcom's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$12.1 billion (£8.7 billion).

The EBITDA is a measure of a Broadcom's overall financial performance and is widely used to measure a its profitability.

Broadcom financials

Revenue TTM US$24.7 billion
Operating margin TTM 21.85%
Gross profit TTM US$17.4 billion
Return on assets TTM 4.27%
Return on equity TTM 16.36%
Profit margin 16.01%
Book value 58.757
Market capitalisation US$187.7 billion

TTM: trailing 12 months

Shorting Broadcom shares

There are currently 6.4 million Broadcom shares held short by investors – that's known as Broadcom's "short interest". This figure is 33.2% up from 4.8 million last month.

There are a few different ways that this level of interest in shorting Broadcom shares can be evaluated.

Broadcom's "short interest ratio" (SIR)

Broadcom's "short interest ratio" (SIR) is the quantity of Broadcom shares currently shorted divided by the average quantity of Broadcom shares traded daily (recently around 3.2 million). Broadcom's SIR currently stands at 2.04. In other words for every 100,000 Broadcom shares traded daily on the market, roughly 2040 shares are currently held short.

However Broadcom's short interest can also be evaluated against the total number of Broadcom shares, or, against the total number of tradable Broadcom shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Broadcom's short interest could be expressed as 0.02% of the outstanding shares (for every 100,000 Broadcom shares in existence, roughly 20 shares are currently held short) or 0.0223% of the tradable shares (for every 100,000 tradable Broadcom shares, roughly 22 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Broadcom.

Find out more about how you can short Broadcom stock.

Broadcom's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Broadcom.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Broadcom's total ESG risk score

Total ESG risk: 23.54

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Broadcom's overall score of 23.54 (as at 12/31/2018) is pretty good – landing it in it in the 38th percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Broadcom is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

Broadcom's environmental score

Environmental score: 5.96/100

Broadcom's social score

Social score: 5.66/100

Broadcom's governance score

Governance score: 6.43/100

Broadcom's controversy score

Controversy score: 3/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. Broadcom scored a 3 out of 5 for controversy – a middle-of-the-table result reflecting that Broadcom hasn't always managed to keep its nose clean.

Environmental, social, and governance (ESG) summary

Broadcom Inc was last rated for ESG on: 2019-01-01.

Total ESG score 23.54
Total ESG percentile 38.46
Environmental score 5.96
Social score 5.66
Governance score 6.43
Level of controversy 3

Broadcom share dividends

58%

Dividend payout ratio: 58.3% of net profits

Recently Broadcom has paid out, on average, around 58.3% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 3.13% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Broadcom shareholders could enjoy a 3.13% return on their shares, in the form of dividend payments. In Broadcom's case, that would currently equate to about $13.7 per share.

Broadcom's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.

Broadcom's most recent dividend payout was on 30 March 2021. The latest dividend was paid out to all shareholders who bought their shares by 18 March 2021 (the "ex-dividend date").

Broadcom share price volatility

Over the last 12 months, Broadcom's shares have ranged in value from as little as US$245.8413 up to US$491.2996. A popular way to gauge a stock's volatility is its "beta".

AVGO.US volatility(beta: 0.99)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Broadcom's is 0.9857. This would suggest that Broadcom's shares are less volatile than average (for this exchange).

Broadcom overview

Broadcom Inc. designs, develops, and supplies semiconductor infrastructure software solutions. It offers semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company's infrastructure software solutions enable customers to plan, develop, automate, manage, and secure applications across mainframe, distributed, mobile, and cloud platforms. It operates through two segments, Semiconductor Solutions and Infrastructure Software. The company was incorporated in 2018 and is based in San Jose, California.

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