Broadcom Inc. (NASDAQ:AVGO)

Price to Earnings (P/E) Ratio

The P/E ratio shows significant fluctuations over the observed periods. Starting at 66.38, it declined steadily to a low of 20.7 by 2022, indicating a possible decrease in market price relative to earnings or improved earnings performance. However, in 2023, the ratio rose sharply to 36.78, before peaking dramatically at 175.56 in 2024, which suggests either a significant rise in market price or a decrease in earnings. The ratio then decreased to 67.63 in 2025, indicating some normalization but still remaining substantially higher than earlier years.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio follows a similar general pattern as the P/E ratio but with somewhat less volatility. It declined from 44.04 in 2020 to 16.33 by 2022, reflecting improved market valuation relative to operating profits. This was followed by an increase to 31.96 in 2023 and a pronounced spike to 76.87 in 2024. The ratio then fell to 61.37 in 2025, remaining elevated compared to the earlier years.

Price to Sales (P/S) Ratio

The P/S ratio starts at 7.4 in 2020 and shows an overall upward trend across the periods, except for a drop in 2022 to 7.0. From 2023 onward, the P/S ratio increased sharply to 14.46 and continued to rise to 20.07 in 2024 and further to 24.48 in 2025. This suggests that the market price has grown faster than sales, indicating a rising valuation relative to revenue.

Price to Book Value (P/BV) Ratio

The P/BV ratio exhibits a general upward trend with some volatility. It increased from 7.4 in 2020 to 10.5 in 2021 and remained elevated at 10.23 in 2022. There was a substantial increase to 21.59 in 2023, followed by a decrease to 15.29 in 2024, and a slight rebound to 19.24 in 2025. This pattern indicates fluctuating market valuations relative to the company's book value, with a peak in 2023.

Share Price Trend

The share price demonstrated a substantial upward trajectory over the period. Beginning at $43.46, it experienced a moderate increase to $63.50 and then a slight dip to $55.59. From there, it surged significantly to $110.65, followed by more than doubling to $220.79, and further rising to $329.88. This reflects a strong appreciation in market value, especially in the latter years.

Earnings per Share (EPS) Pattern

The EPS showed an overall increasing trend with some fluctuations. Starting at $0.65, EPS increased steadily to $1.56 and then to $2.69, peaking at $3.01. However, it declined noticeably to $1.26 before rising sharply again to $4.88. This suggests variability in earnings performance with a significant recovery and growth towards the end of the period.

Price-to-Earnings (P/E) Ratio Dynamics

The P/E ratio exhibited considerable volatility. Initially high at 66.38, it decreased to 40.73, then further declined to 20.70, indicating a more favorable valuation relative to earnings. However, it rose again to 36.78, before spiking to an elevated level of 175.56 and then dropping to 67.63. These fluctuations imply shifts in market expectations of future earnings and varying investor sentiment over time.

Overall Insights

The data reveals a significant growth in share price reflecting positive market sentiment and investor confidence, particularly marked after the middle of the period. Earnings per share generally increased, although with a notable dip prior to a strong rebound, indicating some operational or market challenges followed by recovery and expansion. The P/E ratio's considerable variation suggests changing perceptions of value and growth potential, with occasional periods of high valuation relative to earnings. This pattern points to a dynamic market environment with evolving expectations for the company's financial performance.

Share Price Trend

The share price demonstrated a notable upward trend over the analyzed periods. Starting at $43.46, the price rose to $63.50 in the subsequent year, experienced a slight decline to $55.59 thereafter, then significantly increased to $110.65. The upward momentum continued, reaching $220.79 and further advancing to $329.88 by the final observed date. This pattern indicates robust market confidence and appreciation in the company’s equity value over time.

Operating Profit Per Share (OPPS)

Operating profit per share displayed an overall growth trend, beginning at $0.99 in the initial period and increasing to $2.06 the following year. A further rise to $3.40 was observed next, with a slight increase to $3.46, then a mild decline to $2.87. The last recorded period showed a significant increase to $5.37. While the general direction is upward, fluctuations indicate some variability in operational profitability efficiency across years.

Price to Operating Profit Ratio (P/OP)

The price to operating profit ratio experienced considerable volatility. Initially, the ratio was high at 44.04, decreased sharply to 30.78 and further to 16.33 in the next period, suggesting that the share price became more aligned with operating profit growth. However, it subsequently surged to 31.96, then sharply escalated to 76.87 before settling at 61.37. This rebound and increase in the ratio may reflect elevated market expectations or valuation discrepancies relative to operating profit trends.

Summary Insights

The financial data reveals a strong positive trend in share price growth, significantly outpacing the growth in operating profit per share, particularly in the later periods. The fluctuating price to operating profit ratio suggests varied market sentiment, with periods of both undervaluation and overvaluation relative to operational earnings. The sharp increases in share price without proportional increases in operating profit raise questions about sustainability and reflect potentially optimistic market projections or external factors influencing valuation.

The analysis of the annual financial data reveals a strong upward trend in several key financial metrics over the observed periods.

Share Price

The share price exhibits a significant growth trajectory, rising from $43.46 in 2020 to $329.88 by 2025. This represents a substantial increase of over sevenfold within the five-year span, with a particularly sharp acceleration observed from 2023 onward.

Sales Per Share

Sales per share also demonstrate consistent growth, increasing from $5.87 in 2020 to $13.47 in 2025. Although the increase is more gradual compared to the share price, the sales per share nearly doubled during this period, indicating improving revenue generation on a per share basis.

Price-to-Sales (P/S) Ratio

The P/S ratio fluctuates in the initial years but shows an overall significant increase from 7.4 in 2020 to 24.48 in 2025. The ratio notably declined to 7 in 2022 after a peak of 9.55 in 2021, before exhibiting a sharp rise thereafter, reaching more than three times the initial value by 2025. This suggests that the market valuation relative to sales is expanding considerably, potentially reflecting heightened investor optimism or expectations for future growth.

In summary, the data indicates strong market confidence as reflected in the rapidly escalating share price and P/S ratio, supported by steady growth in sales per share. The divergence between the share price growth and sales per share growth, particularly reflected in the increasing P/S ratio, may imply a shift in market perception regarding the company’s growth prospects or profitability potential.

Share Price Trends

The share price exhibited a generally rising trajectory over the analyzed periods. Beginning at $43.46, it increased substantially to $63.50 the following year. After a slight decline to $55.59, the price surged significantly, reaching $110.65, before doubling to $220.79 and then continuing upward to $329.88. This pattern indicates accelerated growth in the latter years, suggesting increased market confidence or positive company performance.

Book Value per Share (BVPS) Trends

The book value per share showed relatively minor fluctuations initially, moving from $5.87 to $6.05, then slightly declining to $5.43 and $5.12 by 2023. However, there was a marked increase thereafter, with BVPS rising sharply to $14.44 and further to $17.15 in the most recent periods. This uptick implies a strengthening of the company's underlying net asset value over time, particularly in the last two years.

Price-to-Book Value (P/BV) Ratio Analysis

The price-to-book ratio started at 7.4 and increased to 10.5 and 10.23 over the first three periods, indicating the market price was trading at a significant premium over book value, which remained relatively stable. In the following periods, the ratio jumped sharply to 21.59, then decreased to 15.29 before rising again to 19.24. These variations suggest fluctuating investor sentiment or market valuation relative to the company's net asset base. The sharp jump followed by volatility indicates periods of strong market optimism tempered by correction phases.

Overall Insights

The data reflects strong capital market performance with a rapidly appreciating share price coupled with a substantial increase in book value in the later years. Despite this enhancement in book value, the P/B ratio remains elevated, signaling persistent investor confidence in growth prospects or intangible asset value. The volatility in the P/B ratio towards the end of the period indicates changing perceptions of valuation multiples, highlighting the importance of monitoring market conditions and company fundamentals closely.