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Broadcom (CHIX:1YDD) PS Ratio : 17.68 (As of Dec. 11, 2024)


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What is Broadcom PS Ratio?

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Broadcom's share price is €166.68. Broadcom's Revenue per Share for the trailing twelve months (TTM) ended in Jul. 2024 was €9.43. Hence, Broadcom's PS Ratio for today is 17.68.

Warning Sign:

Broadcom Inc stock PS Ratio (=16.93) is close to 10-year high of 18.41

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

CHIX:1YDd' s PS Ratio Range Over the Past 10 Years
Min: 3.56   Med: 6.34   Max: 18.41
Current: 16.93

During the past 13 years, Broadcom's highest PS Ratio was 18.41. The lowest was 3.56. And the median was 6.34.

CHIX:1YDd's PS Ratio is ranked worse than
91.46% of 995 companies
in the Semiconductors industry
Industry Median: 2.89 vs CHIX:1YDd: 16.93

Broadcom's Revenue per Sharefor the three months ended in Jul. 2024 was €2.59. Its Revenue per Share for the trailing twelve months (TTM) ended in Jul. 2024 was €9.43.

Good Sign:

Broadcom Inc has shown predictable revenue and earnings growth.

During the past 12 months, the average Revenue per Share Growth Rate of Broadcom was 21.30% per year. During the past 3 years, the average Revenue per Share Growth Rate was 14.00% per year. During the past 5 years, the average Revenue per Share Growth Rate was 12.20% per year. During the past 10 years, the average Revenue per Share Growth Rate was 21.20% per year.

During the past 13 years, Broadcom's highest 3-Year average Revenue per Share Growth Rate was 51.20% per year. The lowest was 5.50% per year. And the median was 13.70% per year.

Back to Basics: PS Ratio


Broadcom PS Ratio Historical Data

The historical data trend for Broadcom's PS 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 PS Ratio Chart

Broadcom Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.44 6.18 8.31 5.99 10.03

Broadcom Quarterly Data
Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24
PS 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 10.74 10.03 13.31 13.80 15.83

Competitive Comparison of Broadcom's PS Ratio

For the Semiconductors subindustry, Broadcom's PS Ratio, along with its competitors' market caps and PS 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 PS Ratio Distribution in the Semiconductors Industry

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

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



Broadcom PS Ratio Calculation

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.

Broadcom's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=166.68/9.428
=17.68

Broadcom's Share Price of today is €166.68.
Broadcom's Revenue per Share for the trailing twelve months (TTM) ended in Jul. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was €9.43.

* 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.

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

PS Ratio=Market Cap/Revenue

The Revenue here is for the trailing 12 months.


Broadcom  (CHIX:1YDd) PS Ratio Explanation

The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.

When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.

Similar to the PE Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PS Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.


Broadcom PS Ratio Related Terms

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


Broadcom 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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