Using the industry peer median P/E multiple (trailing + forward), Broadcom Inc. (AVGO) has a fair value of $301.81 based on 5 comparable companies in the Semiconductors industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Broadcom Inc.AVGO | 1,505,498 | 65.0x | 27.7x |
| Taiwan Semiconductor Manufacturing Company LimitedTSM | 1,691,373 | 31.4x | 32.5x |
| Meta Platforms, Inc.META | 1,499,714 | 25.3x | 20.0x |
| Micron Technology, Inc.MU | 430,894 | 50.3x | 6.9x |
| Advanced Micro Devices, Inc.AMD | 359,130 | 83.1x | 32.5x |
| Analog Devices, Inc.ADI | 154,224 | 69.3x | 49.8x |
| Industry Median | 50.3x | 32.5x | |
| (*) Profit after tax | 23,126 | 54,368 | |
| Equity Value | 1,164,191 | 1,765,170 | |
| (/) Outstanding shares | 4,853 | 4,853 | |
| Fair Price | $240 | $364 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.