Broadcom

1YD.DE

Semiconductors · Technology

Price

€315.95

+4.50 (+1.44%)

Market Cap

€1.50T

Exchange

Frankfurt Stock Exchange

Winston Score

Winston is happy

A high-quality business with solid fundamentals.

Data as of Aug 23, 2026 · filings through Apr 30, 2026

How the score breaks down

Quality

Exceptional

Growth

Exceptional

Cash Flow

Exceptional

Stability

Strong

Valuation

Good

Dividends

Mixed

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Share count rising — dilution

+13.1% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 4.29B (2021) → 4.85B (2025)

Winston Score History

The full picture

Broadcom makes computer chips and software that power the internet and large corporate networks. Its chips are found inside smartphones, data center servers, and networking equipment — with Apple being one of its largest customers. Broadcom also owns enterprise software brands like VMware, which helps big companies manage their computer systems.

Broadcom earns money by selling semiconductors directly to device makers and by charging businesses subscription and license fees for its software. It operates globally, with significant revenue from Asia-Pacific manufacturing hubs, and generates over $50 billion in annual revenue. Its deep customer relationships, custom chip designs, and high switching costs give it a strong competitive position. The biggest growth driver right now is demand for custom AI chips, where Broadcom works with major cloud companies to build specialized processors — though its heavy debt load from the VMware acquisition remains a key financial risk to watch.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+47.9% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+86.7% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

$11.0B/ year

↑ Rising (+18% vs prior year)

17.2% of revenue

In line with sector average (15%)

Investing heavily in future products and technology

Insider Activity

1.2%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$19.6B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Broadcom grew revenue 48% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

67.2%

Premium pricing power — 67.2% gross margin

Profit after running costs

Operating Margin

49.0%

Excellent — 49.0% operating margin

Return on the money invested

ROCE

21.6%

Exceptional — 21.6% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth

Sales YoY

+32.3%

Fast-growing sales (+32.3% YoY)

Profit growth

EPS YoY

+126.7%

Earnings growing fast (+126.7% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is

EPS Consistency

7/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash

Cash Conversion

115%

Turns 115% of profit into real cash

Spare cash per sale

FCF Margin

43.4%

Converts sales into free cash efficiently (43.4%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns

Debt / Equity

0.74

Moderate — manageable debt (0.74)

Covers its interest

Interest Cover

11.04x

Comfortably covers interest (11.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

51.0x

Expensive — P/E 51.0

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year

P/E vs Forward

+36.9

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (51.0 → 14.1)

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Dividends

Dividend

Dividend Yield

0.70%

Small dividend — 0.70% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record

Dividend Growth

+4.5%

Dividend growing modestly (4.5% YoY)

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