* Note: Prices are in Million (M) USD.
Description:
Nvidia Corporation is an American multinational technology company incorporated in Delaware and based in Santa Clara, California. It designs graphics processing units (GPUs) for the gaming and professional markets, as well as system on a chip units (SoCs) for the mobile computing and automotive market.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $15,234 M
Debt : $10,285 M
EBITDA : $90,968 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: Technology
Industry: Semiconductors
Based on sector, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 33.11
Since Forward PE Ratio is between 25 - 35, 1 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $6,146 M
Average Revenue: $17,159 M
Revenue Converted To Free Cash Flow (%): 35.8%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 25, 5 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-01-31): $130,497 M
Revenue 4 Years Ago (2021-01-31): $16,675 M
Last 5 Years Average Revenue Growth: 137%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2025-01-31): $24,804 M
Share Count 5 Years Ago (2021-01-31): $25,120 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $6.26
Trailing 12-Month Earnings Per Share (EPS): $4.45
Average Earnings Per Share (EPS): $5.36
Dividend Per Share (DPS): $0
Payout Ratio: 1%
Dividend Yield: 0%
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 26.1%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $177
52-Week Low: $87
Threshold Price (15% Above 52-Week Low): $100
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $4,385,134 M
Since Market Cap is greater than 1 Trillion, 5 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 5% exposure of Total Portfolio.
Value-Trade has assigned 34 points to above NVIDIA Corporation (NVDA) stock.
Fair Value PE
25, Industry Based PE
25, Growth Based PE
50, RCFC Based PE
35.82, ROE Based PE
26.07, Risk-Free Anchored PE (25% MoS)
17.61. Based on these 6 values, average assigned is
29.92. Value-Trades has assined P/E value
29.92. An average (Current Year EPS + Next Year EPS) earning per share is
$5.355.
Fair value using multiple P/Es (blended): $160.20 (PE 29.92 × EPS $5.36)
So the Final Fair Value is: $160.20
