Market Pulse44Neutral

Broadcom Inc.Opportunity Rank #220(AVGO) Intrinsic Value & DCF Analysis (2026)

Sector: Technology

Current Price

$392.13

Last updated: Jun 23, 2026

Price vs Intrinsic Value

$392.13
Price
$115.23
Intrinsic Value
Overvalued by 71%MOS: $92.18

Fundamental Score

42/100
Bearish

Weighted across 6 signals

Narrative Score

80/100
Strong

No change vs previous

Trend Score

59/100
Constructive

As of 2026-06-22

The intrinsic value of Broadcom Inc. (AVGO) is estimated at $115.23 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $392.13, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 7.43% long-term growth rate and a 10.17% discount rate, reflecting expected future free cash flow and cost of capital.

The intrinsic value of Broadcom Inc. (AVGO) is estimated at $115.23 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $392.13, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 7.43% long-term growth rate and a 10.17% discount rate, reflecting expected future free cash flow and cost of capital.

Valuation Details

$115.23
▼ -70.61% downside
20% margin of safety: $92.18
Years: 10Growth Rate: 7.43%
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Capital Efficiency

Average Quarterly ROIC
6.12%
Cost of Capital (estimated)9%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

42/100
BearishWeighted across 6 signals
DCF Discount
70.6% premium to price
0
FCF Yield
1.8% trailing FCF yield
0
ROIC vs WACC
ROIC 6.1% vs WACC 9.0% (0.7x)
34
Net Debt / FCF
1.3x net debt to FCF
51
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
22.5% 5Y FCF CAGR
100
Strengths: Buybacks, FCF CAGR (5Y). Concerns: DCF Discount, FCF Yield.

Narrative Details

80/100
Strong
Vs 6-Month Baseline:Above Avg (63rd pct)Weighted across 6 recent drivers
Trend: Improving upConfidence: 100%Updated: 6m ago
Sources: 232 (200 News · 32 Analyst)
Drivers(last 30 days)
167 news sentiment+3.1
25 regulatory scrutiny+1.0
3 margin pressure+0.4
2 upgrade headlines+0.3
Earnings beat-0.1
2 analyst downgrades-0.0

Trend Details

59/100
ConstructiveAs of 2026-06-22308 daily bars used
3M Relative Strength vs SPY+11.5%
6M Relative Strength vs SPY+9.4%
Price vs 21 EMA-3.1%
Price vs 21 EMA31 · -3.1%
Price vs 50 EMA41 · -1.9%
21 EMA vs 50 EMA60 · +1.2%
3M RS vs SPY87 · +11.5%
6M RS vs SPY74 · +9.4%
Distance from 52W High63 · -18.6%

Investment Coach

Updating... 12d ago
AVOIDConfidence: 90%
Thesis
Broadcom Inc. (AVGO) is significantly overvalued with its current price approximately 67.7% above the estimated fair value, supported by weak fundamentals and a deteriorating narrative score. The company's returns are trailing its cost of capital, indicating poor value creation for shareholders.
Key Risk
The primary risk is that the company's fundamentals and narrative could improve unexpectedly, narrowing the valuation gap and reducing downside risk.
Signals To Watch
  • Price moving to at least a mid-teens discount to fair value
  • Sustained improvement in ROIC versus WACC spread
  • Meaningful positive shifts in the narrative score direction
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 7.68%5 Year CAGR: 19.40%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012201120102009200820072006
$34,482$28,160$20,510$18,537$17,160$14,207$12,524$10,129$9,515$7,620$4,134$2,911$1,584$958$934$838$589$197$279$183$429

How Intrinziq Estimates Fair Value

Intrinziq estimates Broadcom Inc.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

Broadcom Inc.Technology

Broadcom Inc. is a prominent global technology enterprise focused on the innovation, development, and supply of advanced semiconductor solutions and critical infrastructure software. The company's headquarters are situated in San Jose, California, and it maintains a significant team of 19,000 full-time staff. Its operations are segmented into four primary divisions: Wired Infrastructure, Wireless Communications, Enterprise Storage, and Industrial & Other. Broadcom’s diverse product range is integrated into numerous end-user technologies, including enterprise and data center networking, residential internet solutions, digital television receivers, telecommunications apparatus, mobile phones, data center servers and storage architectures, industrial automation, alternative and power generation systems, and electronic display technologies. The company's product offerings extend from fundamental discrete components to intricate sub-systems incorporating various device categories. This also encompasses specialized firmware designed to facilitate interaction between analog and digital systems, alongside mechanical hardware engineered to connect with optoelectronic or capacitive sensing technologies.