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)||$2,752.53||$3,948.31||$4,582.92||$5,188.23||$6,018.35|
|Source||Analyst x10||Analyst x13||Analyst x10||Analyst x3||Extrapolated @ (16%, capped from 18.44%)|
Discounted (@ 9.89%)
Present value of next 5 years cash flows:
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $6,018 × (1 + 2.47%) ÷ (9.89% – 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 +
$68,419 = $16,542 + $51,877
Value = Total value / Shares Outstanding ($68,419 / 606)Discount to Share Price
Value per share:
Current discount (share price of $245.93): -117.83%
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 = 9.89% = 2.47% + (0.985 * 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 ($146,742,900,000).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
0.985 = 0.977 (1 + (1- 40%) (1.36%))
Levered Beta used in calculation = 0.985
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:
See our latest analysis for NVIDIA Did NVDA's recent earnings growth beat the long-term trend and the industry? … For NVIDIA, its most recent trailing-twelve-month earnings is $2,582.0M, which compared to the previous year's figure, has soared up by more than double. … While NVIDIA has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future.Simply Wall St - – Full article
Investors may find it useful to understand how market analysts predict NVIDIA's earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. … View our latest analysis for NVIDIA Analysts' expectations for the coming year seems rather subdued, with earnings growing by a single digit 9.53%. … NasdaqGS:NVDA Future Profit Jan 12th 18 Although it’s informative knowing the growth each year relative to today’s level, it may be more valuable analyzing the rate at which the earnings are growing on average every year.Simply Wall St - – Full article
NVIDIA Corporation (NASDAQ:NVDA) saw a decent share price growth in the teens level on the NasdaqGS over the last few months. … NVIDIA’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. … If you believe NVIDIA should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable.Simply Wall St - – Full article
View our latest analysis for NVIDIA Peeling the layers of ROE – trisecting a company’s profitability Return on Equity (ROE) is a measure of NVIDIA’s profit relative to its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of NVIDIA’s equity capital deployed. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NasdaqGS:NVDA Last Perf Dec 16th 17 The first component is profit margin, which measures how much of sales is retained after the company pays for all its expenses.Simply Wall St - – Full article
Looking at NVIDIA Corporation's (NASDAQ:NVDA) earnings update in October 2017, analyst forecasts seem fairly subdued, with earnings expected to grow by 9.86% in the upcoming year relative to the higher past 5-year average growth rate of 26.65%. … To understand the overall trajectory of NVDA's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope. … NasdaqGS:NVDA Future Profit Dec 5th 17 This results in an annual growth rate of 17.11% based on the most recent earnings level of $1,666.0M to the final forecast of $2,918.9M by 2020.Simply Wall St - – Full article
NasdaqGS:NVDA Historical Debt Nov 19th 17 A simple way to determine whether the company has put debt into good use is to look at its operating cash flow against its debt obligation. … Last year, NVDA’s operating cash flow exceeded its debt obligations,which means NVDA generates enough money in a year through its operations to pay off its near-term debt. … NVDA’s high cash coverage and appropriate debt levels indicate its ability to utilise its borrowings efficiently in order to generate ample cash flow.Simply Wall St - – Full article
This illustrates a relatively optimistic outlook in the near term, with a relatively solid earnings per share growth rate of 57.22% over the next few years. … NasdaqGS:NVDA Past Future Earnings Nov 9th 17 Is the growth built on solid basis? … NVDA’s triple-digit earnings growth the past couple of years indicates that the company's past performance is supportive of a strong continuation.Simply Wall St - – Full article
This illustrates a relatively optimistic outlook in the near term, with a relatively solid earnings per share growth rate of 55.49% over the next few years. … NVDA’s triple-digit earnings growth the past couple of years indicates that the company's past performance is supportive of a strong continuation. … This means NVDA has already proven its capacity to grow at a strong rate, which should give investors higher conviction of analysts' consensus prediction for the company's future growth going forward.Next Steps: For NVDA, there are three important aspects you should further research: 1.Simply Wall St - – Full article
Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for NVDA Price per share = 197.58 Earnings per share = 4.011 ∴ Price-Earnings Ratio = 197.58 ÷ 4.011 = 49.3x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … For example, if you inadvertently compared riskier firms with NVDA, then investors would naturally value NVDA at a higher price since it is a less risky investment. … Similarly, if you accidentally compared lower growth firms with NVDA, investors would also value NVDA at a higher price since it is a higher growth investment.Simply Wall St - – Full article
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|
|Company Analysis updated:||2018/02/24|
|Last estimates confirmation:||2018/02/22|
|Last earnings update:||2018/01/28|
|Last annual earnings update:||2018/01/28|
All dates in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.