Broadcom (MIL:1AVGO) Margin of Safety % (DCF Earnings Based): -60.59% (As of Jun. 25, 2026)


MIL:1AVGO Broadcom Inc MIL:1AVGO
74 GF Score
Price €339.75
GF Value €274.64
Valuation Modestly Overvalued
! 2 Warning Signs
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What is Broadcom Margin of Safety % (DCF Earnings Based)?

Broadcom MIL:1AVGO +1.92% 74 Margin of Safety % (DCF Earnings Based) is -60.59% as of Jun. 25, 2026. GuruFocus rates MIL:1AVGO with a GF Score™ of 74/100 and a GF Value™ of €274.64 (Modestly Overvalued). The stock has 2 warning signs investors should review.

Margin of Safety % (DCF Earnings Based) = (Intrinsic Value: DCF (Earnings Based) - Current Price) / Intrinsic Value: DCF (Earnings Based).

Note: Discounted Earnings model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's Predictability Rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

As of today (2026-06-25), Broadcom's Predictability Rank is 5-Stars. Broadcom's intrinsic value calculated from the Discounted Earnings model is €211.56 and current share price is €339.75. Consequently,

Broadcom's Margin of Safety % (DCF Earnings Based) using Discounted Earnings model is -60.59%.

MIL:1AVGO vs MU, AMD, INTC: Margin of Safety % (DCF Earnings Based) Comparison

For the Semiconductors subindustry, Broadcom's Margin of Safety % (DCF Earnings Based), along with its competitors' market caps and Margin of Safety % (DCF Earnings Based) 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 Margin of Safety % (DCF Earnings Based) vs Semiconductors Industry

For the Semiconductors industry and Technology sector, Broadcom's Margin of Safety % (DCF Earnings Based) distribution charts can be found below:

* The bar in red indicates where Broadcom's Margin of Safety % (DCF Earnings Based) falls into.


MIL:1AVGO
74GF Score
Broadcom Inc MIL:1AVGO
Margin of Safety % (DCF Earnings Based) is just one metric. See GF Score™, valuation, warning signs, and more.
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Broadcom Margin of Safety % (DCF Earnings Based) Calculation

Broadcom's Margin of Safety % (DCF Earnings Based) for today is calculated as

Margin of Safety % (DCF Earnings Based)=(Intrinsic Value: DCF (Earnings Based)-Current Price)/Intrinsic Value: DCF (Earnings Based)
=(211.56-339.75)/211.56
=-60.59 %

* 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.

The intrinsic value is calculated from the Discounted Earnings model with default parameters. The calculation method is the same as Discounted Cash Flow model except earnings are used in the calculation instead of free cash flow.

What does a Margin of Safety % (DCF Earnings Based) of -60.59% mean?
Broadcom (MIL:1AVGO) has a Margin of Safety % (DCF Earnings Based) of -60.59% as of Jun. 25, 2026. Margin of Safety % (DCF Earnings Based) is the percent difference between the current price and the intrinsic DCF Earnings price. View historical data on Broadcom.
Is Broadcom's Margin of Safety % (DCF Earnings Based) too high?
Broadcom's current Margin of Safety % (DCF Earnings Based) is -60.59%. Overall, Broadcom has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Broadcom's Margin of Safety % (DCF Earnings Based) compare to MU and AMD?
Broadcom's Margin of Safety % (DCF Earnings Based) of -60.59% can be compared against companies in the Semiconductors industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Margin of Safety % (DCF Earnings Based) for a Semiconductors company?
A good Margin of Safety % (DCF Earnings Based) depends on the Semiconductors industry context. However, Margin of Safety % (DCF Earnings Based) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Margin of Safety % (DCF Earnings Based) mean?
A high Margin of Safety % (DCF Earnings Based) can signal that a stock is expensive relative to its fundamentals. Margin of Safety % (DCF Earnings Based) is the percent difference between the current price and the intrinsic DCF Earnings price. View historical data on Broadcom. Broadcom's current Margin of Safety % (DCF Earnings Based) is -60.59%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Broadcom stock overvalued right now?
Based on GuruFocus' analysis, Broadcom (MIL:1AVGO) is currently considered Modestly Overvalued. The stock's GF Value™ is €274.64, compared to a current price of €339.75 — trading 23.7% above its estimated fair value. The current Margin of Safety % (DCF Earnings Based) is -60.59%. Broadcom's overall GF Score™ is 74/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Margin of Safety % (DCF Earnings Based) calculated?
Margin of Safety % (DCF Earnings Based) is calculated from a company's financial statements. For Broadcom (MIL:1AVGO), the current Margin of Safety % (DCF Earnings Based) is -60.59% as of Jun. 25, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Broadcom (MIL:1AVGO) Overvalued in 2026?

Based on GuruFocus' analysis, Broadcom stock appears to be overvalued. The current stock price of €339.75 is trading 23.7% above its estimated GF Value™ of €274.64. GuruFocus considers Broadcom to be Modestly Overvalued.

Key valuation signals for MIL:1AVGO:

  • Margin of Safety % (DCF Earnings Based): -60.59%
  • GF Value™: €274.64 vs. price of €339.75 (23.7% above fair value)
  • GF Score™: 74/100 with 2 warning signs

No single metric tells the full story. See the MIL:1AVGO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Broadcom Business Description

Address 3421 Hillview Avenue, Palo Alto, CA, USA, 94304
Broadcom is one of the largest semiconductor companies in the world and has also expanded into infrastructure software. Its semiconductors primarily serve computing and networking, with custom AI accelerators now accounting for the bulk of the business. It is primarily a fabless designer, but holds some manufacturing in-house, such as for its best-of-breed film bulk acoustic resonator 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 VMware, Brocade, CA Technologies, and Symantec in software.
74GF Score

Get the complete analysis for MIL:1AVGO

Margin of Safety % (DCF Earnings Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€339.75
Price
€274.64
GF Value