Broadcom is a semiconductor company based in San José, California. The company was the semiconductor product division of Hewlett-Packard and later Agilent prior to its spin-off.
According to Broadcom's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 26.5634. At the end of 2021 the company had a P/E ratio of 42.5.
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The Price/Earnings ratio measures the relationship between a company's stock price and its earnings per share. A low but positive P/E ratio stands for a company that is generating high earnings compared to its current valuation and might be undervalued. A company with a high negative (near 0) P/E ratio stands for a company that is generating heavy losses compared to its current valuation.
Companies with a P/E ratio over 30 or a negative one are generaly seen as "growth stocks" meaning that investors typically expect the company to grow or to become profitable in the future.
Companies with a positive P/E ratio bellow 10 are generally seen as "value stocks" meaning that the company is already very profitable and unlikely to strong growth in the future.