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Broadcom Inc  (NAS:AVGO) Shiller PE Ratio: 58.78 (As of Today)

As of today, Broadcom Inc's current share price is $278.64. Broadcom Inc's E10 for the quarter that ended in Apr. 2019 was $4.74. Broadcom Inc's Shiller P/E Ratio for today is 58.78.

NAS:AVGO' s Shiller PE Ratio Range Over the Past 10 Years
Min: 48.33   Max: 69.83
Current: 58.73

48.33
69.83

During the past years, Broadcom Inc's highest Shiller P/E Ratio was 69.83. The lowest was 48.33. And the median was 59.03.

NAS:AVGO's Shiller PE Ratio is ranked lower than
67% of the 174 Companies
in the Global industry.

( Industry Median: 38.89 vs. NAS:AVGO: 58.73 )

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

Broadcom Inc's adjusted earnings per share data for the three months ended in Apr. 2019 was $1.640. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $4.74 for the trailing ten years ended in Apr. 2019.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Broadcom Inc Annual Data

Oct09 Oct10 Oct11 Oct12 Oct13 Oct14 Oct15 Oct16 Oct17 Oct18
Shiller PE Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 0.00 0.00 50.70

Broadcom Inc Quarterly Data

Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19
Shiller PE Ratio 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 Premium Member Only Premium Member Only Premium Member Only 59.33 53.39 50.70 59.39 67.14

Competitive Comparison
* 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.


Broadcom Inc Distribution

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



Calculation

For the Shiller P/E, 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 P/E is also called PE10.

The Shiller P/E 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 Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/ E10
=278.64/4.74
=58.78

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Broadcom Inc's E10 for the fiscal year that ended in Oct18 is calculated as:

For example, Broadcom Inc's adjusted earnings per share data for the three months ended in Apr. 2019 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Apr. 2019 (Change)*Current CPI (Apr. 2019)
=1.64/254.915*254.915
=1.640

Current CPI (Apr. 2019) = 254.915.

Broadcom Inc Quarterly Data

per_share_eps CPI Adj_EPS
200907 0.010 215.351 0.012
200910 -0.090 216.177 -0.106
201001 0.160 216.687 0.188
201004 0.370 218.009 0.433
201007 0.500 218.011 0.585
201010 0.670 218.711 0.781
201101 0.480 220.223 0.556
201104 0.540 224.906 0.612
201107 0.570 225.922 0.643
201110 0.620 226.421 0.698
201201 0.500 226.665 0.562
201204 0.540 230.085 0.598
201207 0.580 229.104 0.645
201210 0.640 231.317 0.705
201301 0.500 230.280 0.553
201304 0.450 232.531 0.493
201307 0.560 233.596 0.611
201310 0.680 233.546 0.742
201401 0.530 233.916 0.578
201404 0.610 237.072 0.656
201407 -0.650 238.250 -0.695
201410 0.500 237.433 0.537
201501 1.260 233.707 1.374
201504 1.210 236.599 1.304
201507 0.840 238.654 0.897
201510 1.490 237.838 1.597
201601 1.300 236.916 1.399
201604 -3.020 239.261 -3.218
201607 -0.750 240.628 -0.795
201610 -1.590 241.729 -1.677
201701 0.570 242.839 0.598
201704 1.050 244.524 1.095
201707 1.140 244.786 1.187
201710 1.500 246.663 1.550
201801 14.620 247.867 15.036
201804 8.330 250.546 8.475
201807 2.710 252.006 2.741
201810 2.640 252.885 2.661
201901 1.120 251.712 1.134
201904 1.640 254.915 1.640

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


Explanation

Compared with the regular P/E ratio, which works poorly for cyclical businesses, the Shiller P/E 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 P/E should give similar results to regular P/E.

Compared with the P/S ratio, the Shiller P/E makes the comparison between different industries more meaningful.


Be Aware

The Shiller P/E 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, the Shiller P/E and P/S ratio will give false valuations.


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