AVGO – Market expectations are for further declines in Uniform ROA, and management has concerns about strategy, their wireless segment, and volatility

• Broadcom Inc. (AVGO:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 10.2x Uniform P/E, implying bearish expectations for the firm. Moreover, they may be concerned about their current business model, wireless products segment, and volatility in broadband products
• Specifically, management may lack confidence in their acquisition-heavy business model, and may be exaggerating their ability to capitalize on the transition to 5G across wireless networks. Additionally, they may be concerned about their wireless products segment, and may lack confidence in their ability to assist large operators build their own data centers. Furthermore, they may lack confidence in their ability to deliver differentiated high-performance products in their RF front-end business, and to sustain elevated growth in their wired segment. Moreover, they may be concerned about volatility in their broadband products division, and may be exaggerating their awareness of current market insights