Is Broadcom Inc. overvalued or undervalued?

As of 4 September 2025, Broadcom Inc. has moved from very expensive to expensive in valuation grade. The company is currently overvalued based on its high P/E ratio of 80, a price-to-book value of 16.69, and an EV to EBITDA ratio of 39.12, which are significantly above industry norms. In comparison, NVIDIA Corp., which is rated attractive, has a P/E of 47.72 and an EV to EBITDA of 41.13, while QUALCOMM, rated very attractive, shows a P/E of 14.62 and an EV to EBITDA of 12.69.
Despite the overvaluation, Broadcom has demonstrated strong performance with a year-to-date return of 48.96%, significantly outperforming the S&P 500's 12.22% during the same period. However, the recent weekly return of -3.97% suggests some volatility, indicating that the stock may be facing headwinds despite its historical performance.