NVDA Relative Valuation
NVDA's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, NVDA is overvalued; if below, it's undervalued.
Historical Valuation
NVIDIA Corp (NVDA) is now in the Fair zone, suggesting that its current forward PE ratio of 27.00 is considered Fairly compared with the five-year average of 44.41. The fair price of NVIDIA Corp (NVDA) is between 110.04 to 475.99 according to relative valuation methord.
Relative Value
Fair Zone
110.04-475.99
Current Price：187.24
Fair
27.00
PE
1Y
3Y
5Y
21.52
EV/EBITDA
NVIDIA Corp. (NVDA) has a current EV/EBITDA of 21.52. The 5-year average EV/EBITDA is 37.51. The thresholds are as follows: Strongly Undervalued below 2.07, Undervalued between 2.07 and 19.79, Fairly Valued between 55.23 and 19.79, Overvalued between 55.23 and 72.95, and Strongly Overvalued above 72.95. The current Forward EV/EBITDA of 21.52 falls within the Historic Trend Line -Fairly Valued range.
22.47
EV/EBIT
NVIDIA Corp. (NVDA) has a current EV/EBIT of 22.47. The 5-year average EV/EBIT is 32.48. The thresholds are as follows: Strongly Undervalued below 9.25, Undervalued between 9.25 and 20.86, Fairly Valued between 44.10 and 20.86, Overvalued between 44.10 and 55.71, and Strongly Overvalued above 55.71. The current Forward EV/EBIT of 22.47 falls within the Historic Trend Line -Fairly Valued range.
15.33
PS
NVIDIA Corp. (NVDA) has a current PS of 15.33. The 5-year average PS is 16.85. The thresholds are as follows: Strongly Undervalued below 9.36, Undervalued between 9.36 and 13.11, Fairly Valued between 20.60 and 13.11, Overvalued between 20.60 and 24.35, and Strongly Overvalued above 24.35. The current Forward PS of 15.33 falls within the Historic Trend Line -Fairly Valued range.
29.50
P/OCF
NVIDIA Corp. (NVDA) has a current P/OCF of 29.50. The 5-year average P/OCF is 38.67. The thresholds are as follows: Strongly Undervalued below 9.89, Undervalued between 9.89 and 24.28, Fairly Valued between 53.05 and 24.28, Overvalued between 53.05 and 67.44, and Strongly Overvalued above 67.44. The current Forward P/OCF of 29.50 falls within the Historic Trend Line -Fairly Valued range.
30.25
P/FCF
NVIDIA Corp. (NVDA) has a current P/FCF of 30.25. The 5-year average P/FCF is 42.16. The thresholds are as follows: Strongly Undervalued below 3.60, Undervalued between 3.60 and 22.88, Fairly Valued between 61.43 and 22.88, Overvalued between 61.43 and 80.71, and Strongly Overvalued above 80.71. The current Forward P/FCF of 30.25 falls within the Historic Trend Line -Fairly Valued range.
NVIDIA Corp (NVDA) has a current Price-to-Book (P/B) ratio of 38.60. Compared to its 3-year average P/B ratio of 42.29 , the current P/B ratio is approximately -8.72% higher. Relative to its 5-year average P/B ratio of 33.91, the current P/B ratio is about 13.84% higher. NVIDIA Corp (NVDA) has a Forward Free Cash Flow (FCF) yield of approximately 1.69%. Compared to its 3-year average FCF yield of 1.41%, the current FCF yield is approximately 19.63% lower. Relative to its 5-year average FCF yield of 1.40% , the current FCF yield is about 20.04% lower.
38.60
P/B
Median3y
42.29
Median5y
33.91
1.69
FCF Yield
Median3y
1.41
Median5y
1.40
Competitors Valuation Multiple
The average P/S ratio for NVDA's competitors is 11.02, providing a benchmark for relative valuation. NVIDIA Corp Corp (NVDA) exhibits a P/S ratio of 15.33, which is 39.15% above the industry average. Given its robust revenue growth of 62.49%, this premium appears sustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of NVDA increased by 55.94% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 35.08B to 57.01B.
The secondary factor is the Margin Expansion, contributed 1.71%to the performance.
Overall, the performance of NVDA in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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Frequently Asked Questions
Is NVIDIA Corp (NVDA) currently overvalued or undervalued?
NVIDIA Corp (NVDA) is now in the Fair zone, suggesting that its current forward PE ratio of 27.00 is considered Fairly compared with the five-year average of 44.41. The fair price of NVIDIA Corp (NVDA) is between 110.04 to 475.99 according to relative valuation methord.
What is NVIDIA Corp (NVDA) fair value?
NVDA's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of NVIDIA Corp (NVDA) is between 110.04 to 475.99 according to relative valuation methord.
How does NVDA's valuation metrics compare to the industry average?
The average P/S ratio for NVDA's competitors is 11.02, providing a benchmark for relative valuation. NVIDIA Corp Corp (NVDA) exhibits a P/S ratio of 15.33, which is 39.15% above the industry average. Given its robust revenue growth of 62.49%, this premium appears sustainable.
What is the current P/B ratio for NVIDIA Corp (NVDA) as of Jan 07 2026?
As of Jan 07 2026, NVIDIA Corp (NVDA) has a P/B ratio of 38.60. This indicates that the market values NVDA at 38.60 times its book value.
What is the current FCF Yield for NVIDIA Corp (NVDA) as of Jan 07 2026?
As of Jan 07 2026, NVIDIA Corp (NVDA) has a FCF Yield of 1.69%. This means that for every dollar of NVIDIA Corp’s market capitalization, the company generates 1.69 cents in free cash flow.
What is the current Forward P/E ratio for NVIDIA Corp (NVDA) as of Jan 07 2026?
As of Jan 07 2026, NVIDIA Corp (NVDA) has a Forward P/E ratio of 27.00. This means the market is willing to pay $27.00 for every dollar of NVIDIA Corp’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for NVIDIA Corp (NVDA) as of Jan 07 2026?
As of Jan 07 2026, NVIDIA Corp (NVDA) has a Forward P/S ratio of 15.33. This means the market is valuing NVDA at $15.33 for every dollar of expected revenue over the next 12 months.