The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value. We use
analyst's estimates of cash flows going forward 5 years.
See our documentation to learn about this calculation.
|Levered FCF (USD, Millions)||$1,338.76||$2,729.82||$3,133.73||$3,543.99||$4,110.35|
|Source||Analyst x10||Analyst x10||Analyst x12||Analyst x5||Extrapolated @ (15.98%)|
Discounted (@ 10.16%)
Present value of next 5 years cash flows:
Terminal Value = FCF2021 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $4,110 × (1 + 2.47%) ÷ (10.16% – 2.47%)
Terminal value based on the Perpetuity Method where growth (g) =
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows +
$44,534 = $10,750 + $33,783
Value = Total value / Shares Outstanding ($44,534 / 606)Discount to Share Price
Value per share:
Current discount (share price of $214.93): -192.47%
The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.
Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
Discount rate = 10.16% = 2.47% + (1.021 * 7.53%)
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value ($130,926,300,000).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
1.021 = 1.01 (1 + (1- 30%) (1.53%))
Levered Beta used in calculation = 1.021
Mr. Jensen Hsun Huang founded NVIDIA Ltd. in 1993 and has been its Chief Executive Officer and President since 1993. Mr. Huang co-founded NVIDIA Corporation in April 1993 and has been its Chief Executive Officer and President since April 1993. Mr. Huang served as an Advisor at IT-Farm Corporation. Under his leadership, NVIDIA has become the world leader in programmable graphics processing technologies and one of the semiconductor industry's largest fabless companies. Mr. Huang served as a Trustee of The RAND Corporation since 1999. From 1985 to 1993, he was employed at LSI Logic Corporation where he held a variety of positions. From 1984 to 1985, Mr. Huang served as a Microprocessor Designer for Advanced Micro Devices, Inc. He has been a Director of NVIDIA Corporation and NVIDIA Ltd. since April 1993. He served as Director of The RAND Corporation and Coreware. He serves as a Director of Semiconductor Industry Association. He is also a Member of the Committee of 100. In 2004, the Fabless Semiconductor Association honored him with the prestigious Mr. Morris Chang Exemplary Leadership Award. Mr. Huang is often invited to speak on technology and business trends at industry events. He holds an M.S. in Electrical Engineering degree from Stanford University and a B.S. in Electrical Engineering degree from Oregon State University.
Average tenure and age of the NVIDIA management team in years:
Average tenure and age of the NVIDIA board of directors in years:
NVIDIA Corporation operates as a visual computing company worldwide. It operates in two segments, GPU and Tegra Processor. The GPU segment offers processors, which include GeForce for PC gaming; GeForce NOW for cloud-based game-streaming service; Quadro for design professionals working in computer-aided design, video editing, special effects, and other creative applications; Tesla for deep learning, accelerated computing, and general purpose computing; and GRID for cloud-based visual computing users. The Tegra Processor segment provides processors that integrate a computer onto a single chip under the Tegra brand name; DRIVE automotive computers, which offer self-driving capabilities; and tablet and portable devices for mobile gaming and TV streaming under the SHIELD name. The company’s products are used in gaming, professional visualization, datacenter, and automotive markets. It sells its products primarily to original equipment manufacturers, original device manufacturers, system builders, motherboard manufacturers, add-in board manufacturers, and retailers/distributors. NVIDIA Corporation was founded in 1993 and is headquartered in Santa Clara, California.
2788 San Tomas Expressway,
|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|NasdaqGS||NVDA||Common Stock||Nasdaq Global Select||US||USD||22. Jan 1999|
|DB||NVD||Common Stock||Deutsche Boerse AG||DE||EUR||22. Jan 1999|
|XTRA||NVD||Common Stock||XETRA Trading Platform||DE||EUR||22. Jan 1999|
|SWX||NVDA||Common Stock||SIX Swiss Exchange||CH||CHF||22. Jan 1999|
|WBAG||NVDA||Common Stock||Wiener Boerse AG||AT||EUR||22. Jan 1999|
|BMV||NVDA *||Common Stock||Bolsa Mexicana de Valores||MX||MXN||22. Jan 1999|
|Sector:||Semiconductors and Semiconductor Equipment|