Broadcom Inc. is an American manufacturer and global supplier of semiconductor products and infrastructure software products. Its product offerings serve the data center, networking, software, wireless, industrial, and storage markets. The company offers products that include wireless chips and chipsets. For investors, this company offers high-speed data transmission, high-performance memory, and a range of other electronic components.
The market value of Broadcom differs from its book value, which is the value recorded on the company’s balance sheet. The market value of a stock is based on the opinion of an investor. Investors use various methods to determine the company’s intrinsic value. When the market price is below the intrinsic value, investors buy. However, the intrinsic value of a stock may vary widely.
Investors may also be interested in looking at Broadcom’s beta value. This indicator shows how volatile the company’s stock is compared to the market as a whole. Broadcom has a beta of 1.1164, which means that its shares are more volatile than the market average. This indicates that it is a riskier stock than others, but it may also produce market-beating returns.
Although Broadcom stock has fallen sharply over the past year, its earnings are growing at a high rate and its free cash flow is growing quickly. In the first nine months of its fiscal year, the company’s revenue increased by 21%, while its free cash flow rose 20%. Moreover, the company is reportedly considering a blockbuster acquisition of VMware, which makes it a compelling target for investors. The proposed acquisition would cost $61 billion, or about 9% of its market value. The company plans to fund the deal with 50% cash.
Broadcom is a semiconductors company based in the US. Its shares are traded in US Dollars and are listed on the NASDAQ exchange. It employs about 20,000 people and has a trailing 12-month revenue of around $31.7 billion. Before investing, do some research on the company and the stock symbol. This can help you make a decision on whether to buy or sell.
The company was incorporated in 2018 and is headquartered in San Jose, California. Its CEO, Andy Krause, played a key role in the proposed VMWare acquisition. He is expected to take the role of CEO of the combined company. He also played a major role in the acquisition of Citrix System by Vista Equity Partners and Evergreen Coast Capital. On the 11th of July 2022, Broadcom reported record revenue of $8.1bn with earnings per share of $9.07. Revenue was largely from the company’s Semiconductor solutions segment. The company’s shares have risen 3% in value year-over-year.
Broadcom’s software is used by a variety of industries including banks, insurance organisations, global IT services, health institutions, and education. Despite this popularity, the company faced a difficult year in 2020, when it was hit by a Covid-19 pandemic and US-China trade war. After these two events, the company’s stock price gained 38% in 2020, but briefly dropped to $192 per share during market sell-offs at the beginning of the pandemic.
