NVIDIA Valuation

NVDA Stock  USD 903.56  1.06  0.12%   
At this time, the firm appears to be overvalued. NVIDIA secures a last-minute Real Value of $775.02 per share. The latest price of the firm is $903.56. Our model forecasts the value of NVIDIA from inspecting the firm fundamentals such as profit margin of 0.49 %, and Return On Equity of 0.91 as well as reviewing its technical indicators and probability of bankruptcy. In general, most investors recommend taking in undervalued stocks and trading overvalued stocks since, at some point future time, asset prices and their ongoing real values will merge together.
Price Book
53.8421
Enterprise Value
2.3 T
Enterprise Value Ebitda
64.6122
Price Sales
37.9834
Forward PE
38.4615
Overvalued
Today
903.56
Please note that NVIDIA's price fluctuation is very steady at this time. Calculation of the real value of NVIDIA is based on 3 months time horizon. Increasing NVIDIA's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for NVIDIA is useful when determining the fair value of the NVIDIA stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of NVIDIA. Since NVIDIA is currently traded on the exchange, buyers and sellers on that exchange determine the market value of NVIDIA Stock. However, NVIDIA's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  903.56 Real  775.02 Target  594.21 Hype  911.93 Naive  892.24
The real value of NVIDIA Stock, also known as its intrinsic value, is the underlying worth of NVIDIA Company, which is reflected in its stock price. It is based on NVIDIA's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of NVIDIA's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence NVIDIA's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
771.81
Downside
775.02
Real Value
992.75
Upside
Estimating the potential upside or downside of NVIDIA helps investors to forecast how NVIDIA stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of NVIDIA more accurately as focusing exclusively on NVIDIA's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
4.925.515.66
Details
Hype
Prediction
LowEstimatedHigh
812.25911.93915.14
Details
Potential
Annual Dividend
LowForecastedHigh
0.010.010.01
Details
54 Analysts
Consensus
LowTarget PriceHigh
540.73594.21659.57
Details

NVIDIA Investments

(10.04 Billion)

NVIDIA Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining NVIDIA's current stock value. Our valuation model uses many indicators to compare NVIDIA value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across NVIDIA competition to find correlations between indicators driving NVIDIA's intrinsic value. More Info.
NVIDIA is considered to be number one stock in price to sales category among related companies. It is considered to be number one stock in last dividend paid category among related companies . The ratio of Price To Sales to Last Dividend Paid for NVIDIA is about  231.47 . Comparative valuation analysis is a catch-all model that can be used if you cannot value NVIDIA by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for NVIDIA's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the NVIDIA's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates NVIDIA's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in NVIDIA and how it compares across the competition.

About NVIDIA Valuation

The stock valuation mechanism determines the current worth of NVIDIA on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of NVIDIA. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of NVIDIA based exclusively on its fundamental and basic technical indicators. By analyzing NVIDIA's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of NVIDIA's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of NVIDIA. We calculate exposure to NVIDIA's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to NVIDIA's related companies.
Last ReportedProjected for 2024
Gross Profit44.3 B46.5 B
Pretax Profit Margin 0.56  0.26 
Operating Profit Margin 0.54  0.27 
Net Profit Margin 0.49  0.26 
Gross Profit Margin 0.73  0.62 

8 Steps to conduct NVIDIA's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates NVIDIA's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct NVIDIA's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain NVIDIA's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine NVIDIA's revenue streams: Identify NVIDIA's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research NVIDIA's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish NVIDIA's growth potential: Evaluate NVIDIA's management, business model, and growth potential.
  • Determine NVIDIA's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate NVIDIA's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
NVIDIA's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether NVIDIA's value is low or high relative to the company's performance and growth projections. Determining the market value of NVIDIA can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of NVIDIA represents a small ownership stake in the entity. As a stockholder of NVIDIA, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

NVIDIA Dividends Analysis For Valuation

At present, NVIDIA's Dividend Yield is projected to slightly decrease based on the last few years of reporting. The current year's Dividend Payout Ratio is expected to grow to 0.09, whereas Dividends Paid is forecasted to decline to about 262.4 M. . At present, NVIDIA's Retained Earnings are projected to increase significantly based on the last few years of reporting. The current year's Price Earnings Ratio is expected to grow to 75.41, whereas Retained Earnings Total Equity is forecasted to decline to about 8.6 B.
Last ReportedProjected for 2024
Dividends Paid395 M262.4 M
Dividend Yield 0.0003  0 
Dividend Payout Ratio 0.01  0.09 
Dividend Paid And Capex Coverage Ratio(41.68)(7.94)
There are various types of dividends NVIDIA can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of NVIDIA shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from NVIDIA directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When NVIDIA pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of NVIDIA by the value of the dividends paid out.

NVIDIA Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as NVIDIA does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding2.5 B
Quarterly Earnings Growth Y O Y7.613
Forward Price Earnings37.4532

NVIDIA Current Valuation Indicators

Valuation refers to the process of determining the present value of NVIDIA and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value NVIDIA we look at many different elements of the entity such as NVIDIA's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. NVIDIA's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final NVIDIA's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as NVIDIA, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use NVIDIA's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes NVIDIA's worth.
When determining whether NVIDIA offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of NVIDIA's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Nvidia Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Nvidia Stock:
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in NVIDIA. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in unemployment.
For information on how to trade NVIDIA Stock refer to our How to Trade NVIDIA Stock guide.
Note that the NVIDIA information on this page should be used as a complementary analysis to other NVIDIA's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

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When running NVIDIA's price analysis, check to measure NVIDIA's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy NVIDIA is operating at the current time. Most of NVIDIA's value examination focuses on studying past and present price action to predict the probability of NVIDIA's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move NVIDIA's price. Additionally, you may evaluate how the addition of NVIDIA to your portfolios can decrease your overall portfolio volatility.
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Is NVIDIA's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of NVIDIA. If investors know NVIDIA will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about NVIDIA listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
7.613
Dividend Share
0.16
Earnings Share
11.94
Revenue Per Share
24.675
Quarterly Revenue Growth
2.653
The market value of NVIDIA is measured differently than its book value, which is the value of NVIDIA that is recorded on the company's balance sheet. Investors also form their own opinion of NVIDIA's value that differs from its market value or its book value, called intrinsic value, which is NVIDIA's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because NVIDIA's market value can be influenced by many factors that don't directly affect NVIDIA's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between NVIDIA's value and its price as these two are different measures arrived at by different means. Investors typically determine if NVIDIA is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, NVIDIA's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.