Broadcom Inc (AVGO) is overvalued and Taiwan Semiconductor Manufacturing ADR (TSM) is overvalued.
Both trade above our estimate of their intrinsic value. TSM is the closer of the two: -26%, against -63% for AVGO.
Values as of the 22 Sept 2026 close.
A 12.5x revenue multiple, adjusted for growth and margin, values the shares at $223.35; the price of $364.54 is 63% above that value.
Leak Score 68/100 on 10 of 12 signals
A 12.5x revenue multiple, adjusted for growth and margin, values the shares at $358.23; the price of $452.00 is 26% above that value.
Leak Score 59/100 on 3 of 12 signals
| Metric | AVGO | TSM |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $364.54 | $452.00 |
| Intrinsic value | $223.35 | $358.23 |
| Margin of safety | -63% | -26% |
| Leak Score | 68/100 (10/12) | 59/100 (3/12) |
| Market cap | $1.74T | $2.34T |
| Revenue growth, 5 years | 21.7% | 21.9% |
| Operating margin | 48.6% | 55.8% |
| Net margin | 42.9% | 50.3% |
| Return on equity | 44.3% | 40.1% |
| Debt to equity | 0.60 | 0.17 |
| P/E | 46.5x | 32.6x |
| Forward P/E | 18.9x | 20.6x |
| P/B | 17.5x | 11.6x |
| Dividend yield | 0.7% | 0.9% |