Broadcom Inc
AVGOAbove valueExpectations · demandingHeld by 13 superinvestors.
SEC 10-K · fundamentals
Business quality
as of 2025-11-02Valuation basis: trailing twelve months to 2026-05-03 — latest 10-K plus unaudited 10-Q filings.
- Revenue growth
- +23.9%
- Net margin
- 36.2%
- ROE
- 28.4%
- FCF margin
- 42.1%
Valuation · value band
Above fair value
Zero-growth floor
$33
Central IV
$59
Optimistic top
$178
Broadcom Inc (AVGO): Two methods value the business — a conservative owner-earnings DCF and a growth-credited Greenwald estimate, $33–$178 / sh. Today’s price sits above both (price $356 as of 2026-08-26).
The middle figure is the main read. The right end is the optimistic case under the same conservative caps — not an absolute ceiling.
Revenue growth 7% (lower of historical trend and fundamental cap, capped by moat) · moat 10 yr · discount 10.6% · Zero-growth downside $33
Price as of 2026-08-26 · yahoo · DGS10 4.7% @ 2026-08-26.
Method & numbers
Model cautions
- Owner-earnings yield diverges sharply from the 10-year Treasury (over 300 bps).
- The two methods’ midpoints differ materially — growth assumptions warrant review (over 20%).
- Growth nearly matches the discount rate — the estimate is sensitive to assumptions.
A conservative intrinsic-value band (zero-growth floor to growth-capped DCF) plus a tangible asset floor — not investment advice, not a buy/sell signal, and not a price target.
Owner-earnings DCF $36.34 – $72.36 · Greenwald $99.01 – $178.15 (neutral $137.52) · zero-growth base $48.65 · reproduction $9.29
Moat Franchise (moat) · terminal value 50% of present value · owner-earnings yield 1% vs 10Y 4.7%.
Graham earnings-power value (normalized NOPAT)$38.12 – $48.65 / sh
Normalized NOPAT = average operating margin over the years shown × latest-year revenue × (1 − normalized tax); then + D&A − maintenance capex (write A). Unlevered (pre-interest, attributable to all capital). Capitalized at the 9–11% rate band (read as a WACC proxy). Enterprise → equity bridge applied: + cash − total debt.
Years: TTM 2026-05-03, 2024, 2023, 2022, 2021
v1 simplifications: Maintenance capex (degraded) deducted in full cash (write A): EPV = (NOPAT + D&A − maintenance capex) / WACC; no tax shield on the capex term. Maintenance-capex methods diverge by 74% (> 50%); estimate is degraded. Share-based compensation is left as a real expense (not added back).
Buffett owner-earnings value$33.21 – $40.59 / sh
Owner earnings = average net income + average D&A − maintenance capex (zero-growth floor; no ΔNWC). Levered (starts from net income, already after interest — an equity-holder stream). Capitalized at the 9–11% rate band (read as a cost-of-equity proxy). No enterprise→equity bridge: the capitalized result is already equity value (subtracting debt would double-count interest).
Years: TTM 2026-05-03, 2024, 2023, 2022, 2021
v1 simplifications: Owner earnings = net income + D&A − maintenance capex (degraded); the working-capital change is excluded (maintenance ΔNWC ≈ 0; growth ΔNWC is carried in growth value, not double-counted). Maintenance-capex methods diverge by 74% (> 50%); estimate is degraded. One-time items are not separately normalized (multi-year averaging smooths them partially). Share-based compensation is left as a real expense (not added back); see the SBC/OE disclosure. Capitalized at the 9–11% band as a cost-of-equity proxy; no leverage premium applied (net cash or debt within the no-charge range).
Reproduction value = tangible net assets $-38.44B + capitalized R&D $20.66B（FY 2026, 2024, 2023, 2022） = $9.29 / sh. Reproduction value = intangible-inclusive net reproduction (tangible net assets + acquired-intangible reset proxy + capitalized R&D), ÷ diluted shares; tangible net assets alone are negative for this asset-light franchise.
Moat reading: Franchise test compares earnings power (EPV) against reproduction value (tangible net assets + capitalized R&D). EPV well above reproduction value signals a moat; near it, a commodity; below it, value destruction. A directional reading, not a verdict.
Assumes a narrow moat · competitive-advantage period ≈ 10 years.
Growth value: if the moat holds for 10 yr at ROIIC ≈ 629%, $50.36–$129.50 / sh (neutral $88.87). Conservative, not a forecast.
Window TTM 2026-05-03, FY 2024, 2023, 2022, 2021 · discount band 9%–11% · normalized tax 11% (Average effective tax rate over 5 year(s), capped at the statutory 21%.) · diluted shares.
Owner-earnings DCF: growth g₁ 7% · OE FY TTM 2026-05-03, 2024, 2023, 2022, 2021 · Discount band: 9.16%–12.00% (DGS10 +4.5% to a 12% strict end, as of 2026-08-26). No enterprise→equity bridge: owner earnings already flow to shareholders (post-interest), so no net cash is added and no debt subtracted — matching the engine owner-earnings lamp. Two-method midpoint gap 80%.
Valuation basis: trailing twelve months to 2026-05-03 — latest 10-K plus unaudited 10-Q filings.
What the price is betting
Today's price pencils in about over 30.0% (outside the usual range) a year in owner-earnings for the next few years. Revenue actually grew 21.7% a year.
The market wants it well ahead of its own track record.
Roughly, the price needs its historical revenue growth to run about 18 more years to hold up.
SEC 13F · holders
Superinvestors Holding This Security
13 holders · $3.50B combined · this quarter +2 opened / -2 exited
- Value$1.23BWeight (prev→now)2.7% → 2.8% ▲
- Value$740.5MWeight (prev→now)5.8% → 6.4% ▲
- Value$662.6MWeight (prev→now)4.9% → 2.8% ▼
- Value$497.8MWeight (prev→now)2.5% → 2.0% ▼
- Value$201.0MWeight (prev→now)1.7% → 2.0% ▲
- Value$70.5MWeight (prev→now)8.3% → 10.6% ▲
- Value$56.7MWeight (prev→now)New · 0.8%
- Value$23.9MWeight (prev→now)0.3% → 0.3% ▲
- Value$7.3MWeight (prev→now)0.0% → 0.0% ▲
- Value$2.2MWeight (prev→now)New · 0.0%
Show all 13 holders ▸Collapse ▾
- Value$672,017Weight (prev→now)0.0% → 0.0% ▲
- Value$422,325Weight (prev→now)0.0% → 0.0% ▲
- Value$302,956Weight (prev→now)0.0% → 0.0% ▲
SEC 13F · notes
Written summary
Written summary
Broadcom Inc (AVGO) is held by 13 of the superinvestors tracked on Compounder, with a combined $3.50B in reported 13F value. The largest position belongs to Jeremy Grantham, where it makes up 2.8% of the portfolio.
Other notable holders by value include Polen Capital (6.4% of its book), Chase Coleman (2.8% of its book) and Ray Dalio (2.0% of its book).
Over the latest quarter, 2 of the tracked filers opened a new position in AVGO, 2 added to existing ones, 8 trimmed, and 2 sold out entirely.
Holder counts and values reflect the most recent SEC Form 13F filings, through the quarter ended 2026-06-30. Source: SEC EDGAR. A 13F shows only long US-listed positions and can lag the real portfolio by up to 45 days, so this is disclosed long ownership, not a complete picture.
SEC 13F · co-ownership
Also held by these investors
Investors holding Broadcom Inc (AVGO) also commonly hold →
- Microsoft CorpMSFT11 holders
- Meta Platforms Inc-Class AMETA11 holders
- Amazon.Com IncAMZN10 holders
- Alphabet Inc-Cl AGOOGL10 holders
- Alphabet Inc-Cl CGOOG10 holders
- Nvidia CorpNVDA10 holders
AVGO's price is not below its conservative value band. See current strike-zone stocks
Sources· SEC EDGAR 13F as of 2026-06-30 · filed 2026-08-14
Educational data only — not investment advice. 13F positions are self-reported and can lag up to 45 days.
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