Nvidia Stock Valuation

NVDA
 Stock
  

USD 180.97  10.11  5.92%   

Do you wonder what the value of Nvidia Corp is? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Nvidia Corp, is its stock price multiplied by the total number of shares outstanding, calculating Nvidia Corp's enterprise value requires a different approach. It uses Nvidia Corp's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
The current year Free Cash Flow is expected to grow to about 5.8 B. The current year Enterprise Value is expected to grow to about 405.7 B.
Nvidia Corp secures a last-minute Real Value of $231.04 per share. The latest price of the firm is $180.97. At this time, the firm appears to be undervalued. Our model forecasts the value of Nvidia Corp from analyzing the firm fundamentals such as Return On Equity of 41.95 %, current valuation of 445.58 B, and Profit Margin of 32.02 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we recommend taking in undervalued stocks and trading overvalued stocks since, at some point, asset prices and their ongoing real values will merge together.
  
Nvidia Corp Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Nvidia Corp's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today 180.97
Please note that Nvidia Corp's price fluctuation is very steady at this time. Calculation of the real value of Nvidia Corp is based on 3 months time horizon. Increasing Nvidia Corp'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 Corp 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 Corp. Since Nvidia Corp is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Nvidia Stock. However, Nvidia Corp'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.
160.25
Downside
231.04
Real Value
234.90
Upside
Estimating the potential upside or downside of Nvidia Corp 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 Corp more accurately as focusing exclusively on Nvidia Corp's fundamentals will not take into account other important factors:
Earnings
Estimates (10)
LowProjected EPSHigh
3.553.623.65
Details
Hype
Prediction
LowEstimated ValueHigh
175.02178.88182.74
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.160.160.16
Details
26 Analysts
Consensus
LowTarget PriceHigh
187.50305.02400.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Nvidia Corp's intrinsic value based on its ongoing forecasts of Nvidia Corp's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Nvidia Corp's closest peers. When choosing an evaluation method for Nvidia Corp, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Nvidia Corp Investments

13.29 Billion

Nvidia Valuation Drivers Correlation

Many accounts on the financial statements of Nvidia Corp are highly interrelated and sometimes correlated. Consequently, when conducting Nvidia's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Nvidia
Click cells to compare fundamentals

Nvidia Valuation Trend

Knowing Nvidia Corp's actual value is paramount for traders to make sound investment determinations. Nvidia Corp's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Nvidia Corp's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Nvidia Corp's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Nvidia Market Cap

Nvidia Corp is considered to be number one stock in market capitalization category among related companies. Market capitalization of Semiconductors industry is now estimated at about 1.55 Trillion. Nvidia Corp totals roughly 450.98 Billion in market capitalization claiming about 29% of equities listed under Semiconductors industry.
Capitalization  Workforce  Total debt  Revenue  Valuation

Nvidia Corp Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Nvidia Corp's current stock value. Our valuation model uses many indicators to compare Nvidia Corp value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Nvidia Corp competition to find correlations between indicators driving Nvidia Corp's intrinsic value. More Info.
Nvidia Corp is considered to be number one stock in price to sales category among related companies. It is rated below average in last dividend paid category among related companies creating about  0.01  of Last Dividend Paid per Price to Sales. The ratio of Price to Sales to Last Dividend Paid for Nvidia Corp is roughly  95.44 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Nvidia Corp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Nvidia Corp'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 Corp'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 Corp'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 Corp and how it compares across the competition.

About Nvidia Corp Valuation

The equity valuation mechanism determines the current worth of Nvidia Corp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Nvidia Corp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Nvidia Corp based exclusively on its fundamental and basic technical indicators. By analyzing Nvidia Corp'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 Corp'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 Corp. We calculate exposure to Nvidia Corp's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Nvidia Corp's related companies.
Last ReportedProjected for 2022
Gross Profit12 B12.9 B
Profit Margin 36.23  32.74 
NVIDIA Corporation provides graphics, and compute and networking solutions in the United States, Taiwan, China, and internationally. The companys Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms QuadroNVIDIA RTX GPUs for enterprise workstation graphics vGPU software for cloud-based visual and virtual computing automotive platforms for infotainment systems and Omniverse software for building 3D designs and virtual worlds. Its Compute Networking segment provides Data Center platforms and systems for AI, HPC, and accelerated computing Mellanox networking and interconnect solutions automotive AI Cockpit, autonomous driving development agreements, and autonomous vehicle solutions cryptocurrency mining processors Jetson for robotics and other embedded platforms and NVIDIA AI Enterprise and other software. The companys products are used in gaming, professional visualization, datacenter, and automotive markets. NVIDIA Corporation sells its products to original equipment manufacturers, original device manufacturers, system builders, add-in board manufacturers, retailersdistributors, independent software vendors, Internet and cloud service providers, automotive manufacturers and tier-1 automotive suppliers, mapping companies, start-ups, and other ecosystem participants. It has a strategic collaboration with Kroger Co. NVIDIA Corporation was incorporated in 1993 and is headquartered in Santa Clara, California.
Nvidia Corp's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Nvidia Corp's value is low or high relative to the company's performance and growth projections. Determining the market value of Nvidia Corp can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Nvidia Corp 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 Corp Dividends Analysis For Valuation

The current year Dividend Yield is expected to grow to 0.000924, whereas Payment of Dividends and Other Cash Distributions is forecasted to decline to (383.6 M). . Nvidia Corp Accumulated Retained Earnings Deficit are projected to increase significantly based on the last few years of reporting. The past year's Accumulated Retained Earnings Deficit were at 21.74 Billion. The current year Earning Before Interest and Taxes EBIT is expected to grow to about 5.7 B, whereas Earnings per Basic Share are forecasted to decline to 2.98.
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-355.5 M-383.6 M
Dividend Yield 0.0009  0.000924 
Dividends per Basic Common Share 0.74  0.65 
There are various types of dividends Nvidia Corp 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 Corp 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 Corp by the value of the dividends paid out.

Nvidia Corp Valuation Growth Rates

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 Corp 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.
Quick Ratio4.63
Earnings Quarterly Growth-15.40%
Revenue Growth46.40%
Payout Ratio4.29%
Enterprise Value To Ebitda35.55
Earnings Growth-15.80%
Enterprise Value To Revenue15.08

Nvidia Corp Current Valuation Indicators

Valuation refers to the process of determining the present value of Nvidia Corp 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 Corp'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 Corp'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 Corp, 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 Corp'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 Corp's worth.
Additionally, see Stocks Correlation. Note that the Nvidia Corp information on this page should be used as a complementary analysis to other Nvidia Corp'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 Equity Valuation module to check real value of public entities based on technical and fundamental data.

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Is Nvidia Corp'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 Corp. 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 Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Nvidia Corp 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 Corp's value that differs from its market value or its book value, called intrinsic value, which is Nvidia Corp'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 Corp's market value can be influenced by many factors that don't directly affect Nvidia Corp'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 Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine Nvidia Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Nvidia Corp'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.