Market Pulse59Neutral

Broadcom Inc.Opportunity Rank #183(AVGO) Intrinsic Value & DCF Analysis (2026)

Sector: Technology

Current Price

$412.56

Last updated: May 08, 2026

Price vs Intrinsic Value

$412.56
Price
$98.07
Intrinsic Value
Overvalued by 76%MOS: $78.46

Fundamental Score

39/100
Bearish

Weighted across 6 signals

Narrative Score

80/100
Strong

No change vs previous

Trend Score

90/100
Strong

As of 2026-05-08

The intrinsic value of Broadcom Inc. (AVGO) is estimated at $98.07 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $412.56, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 7.34% long-term growth rate and a 10.20% discount rate, reflecting expected future free cash flow and cost of capital.

The intrinsic value of Broadcom Inc. (AVGO) is estimated at $98.07 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $412.56, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 7.34% long-term growth rate and a 10.20% discount rate, reflecting expected future free cash flow and cost of capital.

Valuation Details

$98.07
▼ -76.23% downside
20% margin of safety: $78.46
Years: 10Growth Rate: 7.34%
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Capital Efficiency

Average Quarterly ROIC
5.31%
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

39/100
BearishWeighted across 6 signals
DCF Discount
76.2% premium to price
0
FCF Yield
1.6% trailing FCF yield
0
ROIC vs WACC
ROIC 5.3% vs WACC 9.0% (0.6x)
30
Net Debt / FCF
1.7x net debt to FCF
39
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
19.5% 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 (61st pct)Weighted across 6 recent drivers
Trend: StableConfidence: 100%Updated: 16h ago
Sources: 220 (200 News · 20 Analyst)
Drivers(last 30 days)
160 news sentiment+7.3
38 regulatory scrutiny+1.5
Margin pressure+0.3
Earnings beat-0.1
Analyst downgrades-0.0
19 analyst reiterations0.0

Trend Details

90/100
StrongAs of 2026-05-08311 daily bars used
Distance from 52-Week High0.0%
3M Relative Strength vs SPY+22.4%
Price vs 50 EMA+14.6%
Price vs 21 EMA84 · +6.8%
Price vs 50 EMA94 · +14.6%
21 EMA vs 50 EMA91 · +7.3%
3M RS vs SPY98 · +22.4%
6M RS vs SPY77 · +10.9%
Distance from 52W High100 · 0.0%

Investment Coach

Updating... 1d ago
AVOIDConfidence: 81%
Thesis
Broadcom Inc. is currently overvalued with its market price approximately 75% above the estimated fair value, supported by a strong narrative score despite weak fundamentals. The company's returns are trailing its estimated cost of capital, indicating potential challenges in generating adequate shareholder value.
Key Risk
The key risk is the sustained negative spread between ROIC and WACC, which could further pressure the company's valuation and financial performance.
Signals To Watch
  • Price moving to at least a mid-teens discount to fair value
  • Improvement in ROIC versus WACC spread
  • Meaningful shifts in the narrative score direction
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 7.63%5 Year CAGR: 16.48%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012201120102009200820072006
$30,457$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 global technology company, which designs, develops and supplies semiconductor and infrastructure software solutions. The company is headquartered in San Jose, California and currently employs 19,000 full-time employees. The firm operates through four segments: Wired Infrastructure, Wireless Communications, Enterprise Storage, and Industrial & Other. The company offers a range of products that are used in end-products, such as enterprise and data center networking, home connectivity, set-top boxes, telecommunication equipment, smartphones, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. Its product portfolio ranges from discrete devices to complex sub-systems that include multiple device types, and also includes firmware for interfacing between analog and digital systems. Its products include mechanical hardware that interfaces with optoelectronic or capacitive sensors.