Evaluation Date: 2026-01-14 | ← Back to All Stock Evaluations
Disclaimer: This analysis is for educational purposes only and does not constitute investment advice. Always conduct your own due diligence and consult a qualified financial advisor before making investment decisions. Past performance does not guarantee future results.
Key Takeaways: Is AVGO a Quality Investment?
Munger Quality Score: 156/210 (74.3%) – PASS
- Top Strength: Business Quality (91%) — Dominates custom silicon (70% share) and data center networking (90% share) with exceptional VMware switching costs
- Key Concern: Valuation (57%) — P/E 72x vs 5-year average 60x, EV/EBITDA 49x vs industry median 21x
- Valuation: 72x P/E vs 60x 5-year average — Premium pricing for quality moat
- Key Risk: EU antitrust investigation into VMware pricing practices; 32% China revenue exposure and TSMC manufacturing dependency