AVGO - Embedded Expectations Analysis - 2018 09 19
Broadcom Inc. (AVGO:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 10.2x Uniform P/E, implying bearish expectations for the firm. Moreover, they may be concerned about their current business model, wireless products segment, and volatility in broadband productsSpecifically, management may lack confidence in their acquisition-heavy business model, and may be exaggerating their ability to capitalize on the transition to 5G across wireless networks. Additionally, they may be concerned about their wireless products segment, and may lack confidence in their ability to assist large operators build their own data centers. Furthermore, they may lack confidence in their ability to deliver differentiated high-performance products in their RF front-end business, and to sustain elevated growth in their wired segment. Moreover, they may be concerned about volatility in their broadband products division, and may be exaggerating their awareness of current market insights
Broadcom, via its subsidiaries, is a designer, developer and supplier of a range of semiconductor and infrastructure software solutions. The company develops semiconductor devices with a focus on digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products. The company provides products that are used in end products such as enterprise and data center networking, home connectivity, set-top boxes, broadband access, telecommunication equipment, smartphones and base stations, data center servers and storage systems, and factory automation. The company has three segments: semiconductor solutions, infrastructure software and intellectual property licensing.
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