The chipmaker looks expensive on today’s numbers, but a patient investor is buying into a much more reasonable valuation three years from now.

At a glance, Broadcom (AVGO) stock looks pricey. Trading at about 34.0 times this year’s expected earnings, it carries a premium that might make many investors pause. But that headline number doesn’t tell the whole story.

What Patience Buys You

Look three years out, and the picture changes completely. Based on what analysts expect the company to earn by 2028, today’s price of $392 is only about 15.1 times those future earnings. That’s a 55% lower multiple, a steep discount that materializes simply by earnings growing into the current price….