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Broadcom Limited (NASDAQ: AVGO) – Analysis of a Large Market Cap Stock

Broadcom Limited (NASDAQ: AVGO), is in the industry Semiconductor – Broad Line. Based in Singapore, Broadcom Limited has a market cap of 68626.14. Therefore, Broadcom Limited is a large market cap stock. Today it is currently trading at 170.95 (-0.17%), with an average volume 2700.59, its volume today is 1122484.

Investors has seen a return of equity of -6.00%. Performance year to date of 19.10% and sales growth for the past five years is 26.70%.

Currently Broadcom Limited, has an EPS of -0.81, which has grown by 327.70% this year. EPS is also projected to grow 19.00% next year, and 15.97% for the next five years. For the past five years EPS growth has been 24.00%. Sales growth quarter over quarter is 118.60%, with EPS growth quarter over quarter coming to a value of -185.00%.

As with most large market cap stocks, it has a good dividend yield of 1.19%. The ability for Broadcom Limited to pay for the 1.19% dividend yield is payout ratio. Also generally volatility for large market cap stocks are lower so for Broadcom Limited, volatility for the week has been 2.66%, and for the month 2.11%.

It has been a long while for Broadcom Limited, since its IPO date on 08/06/2009. Investors at the moment see that Broadcom Limited, has a long term debt/equity of 0.69, with total debt/equity coming to 0.7. The ability for Broadcom Limited to pay these debts is as follows; current ratio is 2.2 and quick ratio comes to 1.7.

In terms of value, Broadcom Limited has a P/E value of , combined with a forward P/E of 12.81. While PEG ratio ideally wants to be as low as possible, and it is . The same goes for P/S and P/B, you want these value to be lower, to represent a potential undervalued company, and they have a P/S and P/B of 6.27 and 3.48 respectively. We see that there is a P/Cash flow of 35 and a P/Free cash flow of 57.

The management of the company has seen, a return of investment of 18.10% and return on assets of -2.40%. Broadcom Limited is comprised of insider ownership at 0.20% and institutional ownership of 93.00%.

With a gross margin of 43.90% and operating margin of -3.60%, this means there is a profit margin of -6.70%. Total shares outstanding is 400.76, with shares float coming to 396.94. The 200-day simple moving average is 14.52% and the 20-day simple moving average is 2.05%.

Broadcom Limited is based in Singapore, in the very big sector Technology. Recently Broadcom Limited has seen performance for this week at 6.83%. While for the month it has been -0.74%. Longer term we see that it has been 10.10% for the quarter and for the half year 12.99%. For the year performance has come to 32.76%.

It will be interesting to see how Broadcom Limited does in the future, and for investors alike. As stated above, it has an EPS growth projection for the next five years of 15.97%. What do you think is the future for Broadcom Limited?

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About Helme Dicosta

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