Is Broadcom Inc. (AVGO) Halal?

NASDAQ Technology United States $1.4T
✓ HALAL
Confidence: 95/100
Broadcom Inc. (AVGO) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 4.2% against the AAOIFI threshold of 30%, Broadcom Inc. comfortably passes the key financial ratio tests. The company operates in the Technology sector (Semiconductors), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from October 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 4.2%
/ 30%
1.0%
/ 30%
0.8%
/ 30%
0.54%
/ 5%
✓ HALAL
DJIM 4.2%
/ 33%
1.0%
/ 33%
0.8%
/ 33%
0.54%
/ 5%
✓ HALAL
MSCI 38.1%
/ 33%
9.5%
/ 33%
7.1%
/ 33%
0.54%
/ 5%
✗ NOT HALAL
S&P 4.2%
/ 33%
1.0%
/ 33%
0.8%
/ 33%
0.54%
/ 5%
✓ HALAL
FTSE 38.1%
/ 33%
9.5%
/ 33%
7.1%
/ 50%
0.54%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
58.5
Forward: 16.9
EPS
$5.14
Dividend Yield
86.0%
Payout: 47.2%
P/B Ratio
5.1
EV/EBITDA
4.1
EV: $153.0B
Revenue
$63.9B
Growth: 16.4%
Beta
1.3
High volatility
Current Ratio
1.9

Profitability

Gross Margin 76.7%
Operating Margin 31.8%
Net Margin 36.6%
Return on Equity (ROE) 33.4%
Return on Assets (ROA) 10.7%

Cash Flow & Balance Sheet

Operating Cash Flow$27.5B
Free Cash Flow$26.9B
Total Debt$65.1B
Debt-to-Equity166.0
Current Ratio1.9
Total Assets$171.1B

Price & Trading

Last Close$309.42
50-Day MA$327.33
200-Day MA$326.74
Avg Volume26.2M
Beta1.3
52-Week Range
$138.10
$414.61

About Broadcom Inc. (AVGO)

CEO
Mr. Hock E. Tan
Employees
33,000
Sector
Technology
Industry
Semiconductors
Country
United States
Exchange
NASDAQ
Market Cap
$1.4T
Currency
USD

Broadcom Inc. designs, develops, and supplies various semiconductor devices and infrastructure software solutions internationally. The company operates in two segments: Semiconductor Solutions and Infrastructure Software. The company offers networking connectivity, such as custom silicon solutions, ethernet switching & routing, ethernet NIC controllers, physical layer devices, and fiber optic components; wireless device connectivity, including RF semiconductor devices, connectivity solutions, custom touch controllers, and inductive charging ASICS; servers and storage system solutions, such as PCIE switches, SAS & raid products, fibre channel products, and HDD & SSD solutions; broadband solutions, includes set-top box, and broadband access; and industrial. The company also offers a private cloud software portfolio, including the VMware Cloud Foundation, Edge, vSphere foundation, telco cloud platform, private AI, live recovery, application networking and security, application development and data services; mainframe software, such as AIOPS & automation, database & data management, DEVX & DEVOPS, cybersecurity & compliance management, beyond code programs, foundational & open mainframe solutions; cybersecurity, such as endpoint, network, information, application security, and identity & access management; enterprise software; and fc san management. Its products are used in various applications in enterprise and data center networking, including artificial intelligence networking and connectivity, home connectivity, set-top boxes, broadband access, telecommunication equipment, wireless device and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. Broadcom Inc. was founded in 1961 and is headquartered in Palo Alto, California.

Purification Calculator

As a halal stock with 0.54% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is Broadcom Inc. (AVGO) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Broadcom Inc. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Broadcom Inc.'s debt ratio?

Broadcom Inc.'s debt ratio is 4.2% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 38.1%.

Does Broadcom Inc. require dividend purification?

Yes, Broadcom Inc. has an impermissible income ratio of 0.54%, which means 0.54% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are Broadcom Inc.'s key financial metrics?

Broadcom Inc. has a market capitalization of $1.4T, trailing P/E ratio of 58.5, and revenue of $63.9B. The company maintains a gross margin of 76.7% and a net margin of 36.6%. Return on equity stands at 33.4%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.