Is Broadcom Stock Cheap Enough Yet?

Shares of Broadcom (AVGO) closed at $328.75 on October 16, 2026. That price sits 31.5% below the highest close of the past year, which the stock reached on June 2. Shareholders lost 5.7% over the past twelve months, while the S&P 500 returned 16.2%. Even after that fall, a buyer today is betting that Broadcom’s surge in AI chip sales keeps going. So has the fall gone far enough, or is it still early?

How Cheap Is Broadcom Stock Against Its Own Past?

Broadcom stock is far cheaper against its earnings than it was a year ago, but not cheap by its own past. At the end of September 2025, the shares traded at 82.1 times the previous four quarters’ earnings. That was down from about 100 times three months earlier and 184 times at the end of 2024. A year later the multiple was down to 43.7. However, that figure is still higher than at 19 of the 35 earlier quarter ends since late 2017.

All of that drop came from higher profit….