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 25.85 is considered Fairly compared with the five-year average of 44.76. The fair price of NVIDIA Corp (NVDA) is between 106.35 to 478.68 according to relative valuation methord.
Relative Value
Fair Zone
106.35-478.68
Current Price：183.02
Fair
26.40
PE
1Y
3Y
5Y
Trailing
Forward
21.09
EV/EBITDA
NVIDIA Corp. (NVDA) has a current EV/EBITDA of 21.09. The 5-year average EV/EBITDA is 38.10. The thresholds are as follows: Strongly Undervalued below 2.65, Undervalued between 2.65 and 20.37, Fairly Valued between 55.82 and 20.37, Overvalued between 55.82 and 73.55, and Strongly Overvalued above 73.55. The current Forward EV/EBITDA of 21.09 falls within the Historic Trend Line -Fairly Valued range.
21.55
EV/EBIT
NVIDIA Corp. (NVDA) has a current EV/EBIT of 21.55. The 5-year average EV/EBIT is 32.81. The thresholds are as follows: Strongly Undervalued below 9.65, Undervalued between 9.65 and 21.23, Fairly Valued between 44.38 and 21.23, Overvalued between 44.38 and 55.96, and Strongly Overvalued above 55.96. The current Forward EV/EBIT of 21.55 falls within the Historic Trend Line -Fairly Valued range.
14.68
PS
NVIDIA Corp. (NVDA) has a current PS of 14.68. The 5-year average PS is 16.89. The thresholds are as follows: Strongly Undervalued below 9.41, Undervalued between 9.41 and 13.15, Fairly Valued between 20.62 and 13.15, Overvalued between 20.62 and 24.36, and Strongly Overvalued above 24.36. The current Forward PS of 14.68 falls within the Historic Trend Line -Fairly Valued range.
28.25
P/OCF
NVIDIA Corp. (NVDA) has a current P/OCF of 28.25. The 5-year average P/OCF is 38.89. The thresholds are as follows: Strongly Undervalued below 10.23, Undervalued between 10.23 and 24.56, Fairly Valued between 53.22 and 24.56, Overvalued between 53.22 and 67.55, and Strongly Overvalued above 67.55. The current Forward P/OCF of 28.25 falls within the Historic Trend Line -Fairly Valued range.
28.93
P/FCF
NVIDIA Corp. (NVDA) has a current P/FCF of 28.93. The 5-year average P/FCF is 42.46. The thresholds are as follows: Strongly Undervalued below 4.04, Undervalued between 4.04 and 23.25, Fairly Valued between 61.67 and 23.25, Overvalued between 61.67 and 80.88, and Strongly Overvalued above 80.88. The current Forward P/FCF of 28.93 falls within the Historic Trend Line -Fairly Valued range.
NVIDIA Corp (NVDA) has a current Price-to-Book (P/B) ratio of 36.71. Compared to its 3-year average P/B ratio of 41.69 , the current P/B ratio is approximately -11.94% higher. Relative to its 5-year average P/B ratio of 33.63, the current P/B ratio is about 9.17% higher. NVIDIA Corp (NVDA) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 1.39%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 1.40% , the current FCF yield is about -100.00% lower.
37.49
P/B
Median3y
41.69
Median5y
33.63
1.77
FCF Yield
Median3y
1.39
Median5y
1.40
Competitors Valuation Multiple
The average P/S ratio for NVDA's competitors is 6.67, providing a benchmark for relative valuation. NVIDIA Corp Corp (NVDA) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 62.49%, this premium appears sustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of NVDA increased by 36.56% 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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