Broadcom (MIL:1AVGO) ROCE %: 27.91% (As of Apr. 2026)


MIL:1AVGO Broadcom Inc MIL:1AVGO
74 GF Score
Price €324.30
GF Value €274.93
Valuation Modestly Overvalued
! 2 Warning Signs
View Full Analysis

What is Broadcom ROCE %?

Broadcom MIL:1AVGO -3.15% 74 ROCE % is 27.91% as of Apr. 2026. GuruFocus rates MIL:1AVGO with a GF Score™ of 74/100 and a GF Value™ of €274.93 (Modestly Overvalued). The stock has 2 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Broadcom's annualized ROCE % for the quarter that ended in Apr. 2026 was 27.91%.

Broadcom  (MIL:1AVGO) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Broadcom ROCE % Related Terms

Broadcom ROCE % Historical Data

* Premium members only.

The historical data trend for Broadcom's ROCE % 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.

Broadcom ROCE % Chart

Broadcom Annual Data
Trend Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24 Oct25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.55 22.67 24.51 12.81 16.64

Broadcom Quarterly Data
Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
ROCE % 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 15.57 16.33 20.27 23.44 27.91
MIL:1AVGO
74GF Score
Broadcom Inc MIL:1AVGO
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Broadcom ROCE % Calculation

Broadcom's annualized ROCE % for the fiscal year that ended in Oct. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Oct. 2025 )  (A: Oct. 2024 )(A: Oct. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Oct. 2025 )  (A: Oct. 2024 )(A: Oct. 2025 )
=22281.601/( ( (152062.11 - 15327.846) + (146968.028 - 15903.526) )/ 2 )
=22281.601/( (136734.264+131064.502)/ 2 )
=22281.601/133899.383
=16.64 %

Broadcom's ROCE % of for the quarter that ended in Apr. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Apr. 2026 )  (Q: Jan. 2026 )(Q: Apr. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Apr. 2026 )  (Q: Jan. 2026 )(Q: Apr. 2026 )
=37298.52/( ( (144587.453 - 14347.009) + (153180.09 - 16127.01) )/ 2 )
=37298.52/( ( 130240.444 + 137053.08 )/ 2 )
=37298.52/133646.762
=27.91 %

(1) Note: The EBIT data used here is four times the quarterly (Apr. 2026) EBIT data.

* 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 27.91% mean?
Broadcom (MIL:1AVGO) has a ROCE % of 27.91% as of Apr. 2026.
Is Broadcom's ROCE % too high?
Broadcom's current ROCE % is 27.91%. The Semiconductors industry median ROCE % is 4.81. Broadcom's value of 27.91% is 480.9% above this industry median. 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 ROCE % compare to MU and AMD?
Broadcom's ROCE % of 27.91% can be compared against companies in the Semiconductors industry. The industry median ROCE % is 4.81. Broadcom's value of 27.91% is 480.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Semiconductors company?
The median ROCE % among Semiconductors companies is 4.81, based on 1,018 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Broadcom's current ROCE % of 27.91% is 480.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Semiconductors industry, the median ROCE % is 4.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Broadcom's current ROCE % is 27.91%. 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 €274.93, compared to a current price of €324.30 — trading 18% above its estimated fair value. The current ROCE % is 27.91% and 480.9% above the Semiconductors industry median of 4.81. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Broadcom (MIL:1AVGO), the current ROCE % is 27.91% as of Apr. 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 €324.30 is trading 18% above its estimated GF Value™ of €274.93. GuruFocus considers Broadcom to be Modestly Overvalued.

Key valuation signals for MIL:1AVGO:

  • ROCE %: 27.91%
  • GF Value™: €274.93 vs. price of €324.30 (18% above fair value)
  • GF Score™: 74/100 with 2 warning signs
  • Industry Position: 480.9% above the Semiconductors median

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

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€324.30
Price
€274.93
GF Value