Q: I'm hoping you might be able to help me understand why Broadcom (AVGO) seems to be so highly regarded by the investment community, as a strong buy. When I review the stock on the TMX website there is an indication that this company's shares are currently trading at a price to earnings multiple of 223.6 to 1. That seems to me to be an insanely high valuation yet the Research tab indicates that 21 analysts rate the company as a strong buy, 1 as a moderate buy and 1 as a hold.
Do you have an opinion about this company and its future prospects? Do firms in this industry typically trade on the basis of some other metric than P/E? Given that I hold nothing else in this space within my portfolio currently, would you recommend that I take a 5% position in this firm at this time?
Do you have an opinion about this company and its future prospects? Do firms in this industry typically trade on the basis of some other metric than P/E? Given that I hold nothing else in this space within my portfolio currently, would you recommend that I take a 5% position in this firm at this time?