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Broadcom Ltd (NAS:AVGO)
P/B Ratio
6.98 (As of Today)

As of today, Broadcom Ltd's share price is $119.71. Broadcom Ltd's Book Value per Share for the fiscal year that ended in Oct. 2015 was $17.15. Hence, Broadcom Ltd's P/B Ratio of today is 6.98.

Good Sign:

Broadcom Ltd stock P/B Ratio (=7.52) is close to 1-year low of 7.16

AVGO' s P/B Ratio Range Over the Past 10 Years
Min: 2.95   Max: 9.48
Current: 7.01

2.95
9.48

During the past 9 years, Broadcom Ltd's highest P/B Ratio was 9.48. The lowest was 2.95. And the median was 4.21.

AVGO's P/B Ratio is ranked lower than
99.99% of the 945 Companies
in the Global Semiconductors industry.

( Industry Median: 1.30 vs. AVGO: 7.01 )

During the past 12 months, Broadcom Ltd's average Book Value Per Share Growth Rate was 27.00% per year. During the past 3 years, the average Book Value Per Share Growth Rate was 20.30% per year. During the past 5 years, the average Book Value Per Share Growth Rate was 20.60% per year.

During the past 9 years, the highest 3-Year average Book Value Per Share Growth Rate of Broadcom Ltd was 31.80% per year. The lowest was 16.30% per year. And the median was 23.75% per year.


Definition

Broadcom Ltd's P/B ratio for today is calculated as follows:

P/B Ratio=Share Price/Book Value per Share (A: Oct. 2015)
=119.71/17.15
=6.98

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

It can also be calculated from the numbers for the whole company:

A closely related ratio is called Price-to-Tangible-Book Ratio. The difference between Price-to-Tangible-Book Ratio and Price-to-Book Ratio is that book value other than intangibles are used in the calculation.


Explanation

Unlike valuation ratios relative to the earning power such as P/E ratio, P/S ratio or Price-to-Free-Cash-Flow ratio, the Price-to-Book Ratio measures the valuation of the stock relative to the underlying asset of the company.

The Price-to-Book Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.


Be Aware

Some businesses have very light assets, such as software companies or insurance agencies. The Price-to-Book Ratio does not work well for these companies. Some companies even have negative equity, so the Price-to-Book Ratio cannot be applied to them.


Related Terms

Book Value per Share, Market Cap, Total Equity, Preferred Stock, P/E ratio, P/S ratio, Price-to-Free-Cash-Flow ratio, Price-to-Tangible-Book Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Broadcom Ltd Annual Data

Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15
pb 0.000.000.003.163.944.143.353.906.727.18

Broadcom Ltd Quarterly Data

Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15
pb 3.333.924.565.065.666.767.277.478.047.22
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