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Broadcom (BSP:AVGO34) Shiller PE Ratio : 96.61 (As of May. 07, 2024)


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What is Broadcom Shiller PE Ratio?

As of today (2024-05-07), Broadcom's current share price is R$94.68. Broadcom's E10 for the quarter that ended in Jan. 2024 was R$0.98. Broadcom's Shiller PE Ratio for today is 96.61.

The historical rank and industry rank for Broadcom's Shiller PE Ratio or its related term are showing as below:

BSP:AVGO34' s Shiller PE Ratio Range Over the Past 10 Years
Min: 36.75   Med: 65.41   Max: 198.86
Current: 92.72

During the past years, Broadcom's highest Shiller PE Ratio was 198.86. The lowest was 36.75. And the median was 65.41.

BSP:AVGO34's Shiller PE Ratio is ranked worse than
88.28% of 512 companies
in the Semiconductors industry
Industry Median: 28.375 vs BSP:AVGO34: 92.72

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Broadcom's adjusted earnings per share data for the three months ended in Jan. 2024 was R$0.200. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is R$0.98 for the trailing ten years ended in Jan. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Broadcom Shiller PE Ratio Historical Data

The historical data trend for Broadcom's Shiller PE Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Broadcom Shiller PE Ratio Chart

Broadcom Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Shiller PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 56.74 61.88 73.23 45.94 61.82

Broadcom Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Shiller PE Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 52.76 52.21 70.25 61.82 85.60

Competitive Comparison of Broadcom's Shiller PE Ratio

For the Semiconductors subindustry, Broadcom's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Broadcom's Shiller PE Ratio Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Broadcom's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Broadcom's Shiller PE Ratio falls into.



Broadcom Shiller PE Ratio Calculation

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Broadcom's Shiller PE Ratio for today is calculated as

Shiller PE Ratio=Share Price/ E10
=94.68/0.98
=96.61

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Broadcom's E10 for the quarter that ended in Jan. 2024 is calculated as:

For example, Broadcom's adjusted earnings per share data for the three months ended in Jan. 2024 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Jan. 2024 (Change)*Current CPI (Jan. 2024)
=0.2/129.4194*129.4194
=0.200

Current CPI (Jan. 2024) = 129.4194.

Broadcom Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201404 0.019 100.023 0.025
201407 -0.021 100.520 -0.027
201410 0.017 100.176 0.022
201501 0.047 98.604 0.062
201504 0.053 99.824 0.069
201507 0.039 100.691 0.050
201510 0.082 100.346 0.106
201601 0.075 99.957 0.097
201604 -0.154 100.947 -0.197
201607 -0.035 101.524 -0.045
201610 -0.072 101.988 -0.091
201701 0.026 102.456 0.033
201704 0.047 103.167 0.059
201707 0.052 103.278 0.065
201710 0.068 104.070 0.085
201801 0.671 104.578 0.830
201804 0.406 105.708 0.497
201807 0.148 106.324 0.180
201810 0.142 106.695 0.172
201901 0.060 106.200 0.073
201904 0.091 107.818 0.109
201907 0.092 108.250 0.110
201910 0.115 108.577 0.137
202001 0.044 108.841 0.052
202004 0.089 108.173 0.106
202007 0.109 109.318 0.129
202010 0.235 109.861 0.277
202101 0.233 110.364 0.273
202104 0.262 112.673 0.301
202107 0.309 115.183 0.347
202110 0.351 116.696 0.389
202201 0.442 118.619 0.482
202204 0.403 121.978 0.428
202207 0.548 125.002 0.567
202210 0.586 125.734 0.603
202301 0.653 126.223 0.670
202304 0.585 127.992 0.592
202307 0.531 128.974 0.533
202310 0.596 129.810 0.594
202401 0.200 129.419 0.200

Add all the adjusted EPS together and divide 10 will get our E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Broadcom  (BSP:AVGO34) Shiller PE Ratio Explanation

Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.

Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.


Be Aware

Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.


Broadcom Shiller PE Ratio Related Terms

Thank you for viewing the detailed overview of Broadcom's Shiller PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Broadcom (BSP:AVGO34) Business Description

Address
3421 Hillview Avenue, Palo Alto, CA, USA, 94304
Broadcom is the sixth-largest semiconductor company globally and has expanded into various software businesses, with over $30 billion in annual revenue. It sells 17 core semiconductor product lines across wireless, networking, broadband, storage, and industrial markets. It is primarily a fabless designer but holds some manufacturing in-house, like for its best-of-breed FBAR filters that sell into the Apple iPhone. In software, it sells virtualization, infrastructure, and security software to large enterprises, financial institutions, and governments.Broadcom is the product of consolidation. Its businesses are an amalgamation of former companies like legacy Broadcom and Avago Technologies in chips, as well as Brocade, CA Technologies, and Symantec in software.

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