Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Broadcom's 3-Year RORE % for the quarter that ended in Apr. 2026 was 33.29%.
The industry rank for Broadcom's 3-Year RORE % or its related term are showing as below:
XSWX:AVGO's 3-Year RORE % is ranked better than 84.39% of 961
companies
in the Semiconductors industry
Industry Median: 12
vs XSWX:AVGO: 33.29
Broadcom (XSWX:AVGO) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Broadcom 3-Year RORE % Related Terms
Broadcom 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Broadcom's 3-Year RORE % 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.
XSWX:AVGO vs MU, AMD, INTC: 3-Year RORE % Comparison
For the Semiconductors subindustry, Broadcom's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 3-Year RORE % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Broadcom's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Broadcom's 3-Year RORE % falls into.
* 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.
In the calculation of 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Apr. 2026 and 3-year before.
Broadcom (XSWX:AVGO) has a 3-Year RORE % of 33.29 as of Apr. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Broadcom and its competitors. According to the industry distribution chart, Broadcom ranks #150 out of 961 companies in the Semiconductors industry, placing it in the top 15.6%.
Is Broadcom's 3-Year RORE % too high?
Broadcom's current 3-Year RORE % is 33.29. The Semiconductors industry median 3-Year RORE % is 12.00. Broadcom's value of 33.29 is 177.4% above this industry median. Based on the distribution chart, Broadcom ranks #150 out of 961 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Broadcom has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Broadcom's 3-Year RORE % compare to MU and AMD?
According to the Semiconductors industry distribution chart, Broadcom ranks #150 out of 961 companies for 3-Year RORE %. This places Broadcom in the top 16% of its industry — outperforming the majority of peers. The industry median 3-Year RORE % is 12.00. Broadcom's value of 33.29 is 177.4% 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 3-Year RORE % for a Semiconductors company?
The median 3-Year RORE % among Semiconductors companies is 12.00, based on 961 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Broadcom's current 3-Year RORE % of 33.29 is 177.4% 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Broadcom and its competitors. For the Semiconductors industry, the median 3-Year RORE % is 12.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Broadcom's current 3-Year RORE % is 33.29. 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 (XSWX:AVGO) is currently considered Modestly Overvalued. The stock's GF Value™ is CHF258.64, compared to a current price of CHF296.50 — trading 14.6% above its estimated fair value. The current 3-Year RORE % is 33.29 and 177.4% above the Semiconductors industry median of 12.00. Broadcom's overall GF Score™ is 75/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Broadcom (XSWX:AVGO), the current 3-Year RORE % is 33.29 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 (XSWX:AVGO) Overvalued in 2026?
Based on GuruFocus' analysis, Broadcom stock appears to be overvalued.
The current stock price of CHF296.50 is trading 14.6% above its estimated GF Value™ of CHF258.64.
GuruFocus considers Broadcom to be Modestly Overvalued.
Key valuation signals for XSWX:AVGO:
3-Year RORE %: 33.29
GF Value™: CHF258.64 vs. price of CHF296.50 (14.6% above fair value)
Industry Position: 177.4% above the Semiconductors median (#150 of 961)
No single metric tells the full story. See the XSWX:AVGO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
75GF Score
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