Broadcom's Strong FCF Margins Imply AVGO Stock Could Rise Further

Broadcom Inc. (AVGO) produced strong free cash flow and higher FCF margins for its fiscal Q2 ending May 4. FCF was almost 43% of revenue, its highest margin in the last year. Using a FCF yield valuation metric, ABGO stock is worth $328 per share, +35% more. This article will show how that works out.

AVGO is at $243.40 in midday trading on Monday, June 9. That is off its recent six-month high of $261.08 on June 4.