NVIDIA Corporation

NasdaqGS:NVDA Stock Report

Market Cap: US$3.6t

NVIDIA Valuation

Is NVDA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of NVDA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NVDA ($145.89) is trading above our estimate of fair value ($88.83)

Significantly Below Fair Value: NVDA is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NVDA?

Key metric: As NVDA is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for NVDA. This is calculated by dividing NVDA's market cap by their current earnings.
What is NVDA's PE Ratio?
PE Ratio67.4x
EarningsUS$53.01b
Market CapUS$3.60t

Price to Earnings Ratio vs Peers

How does NVDA's PE Ratio compare to its peers?

The above table shows the PE ratio for NVDA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average78.7x
AVGO Broadcom
139x43.0%US$772.3b
AMD Advanced Micro Devices
122.3x40.5%US$226.2b
QCOM QUALCOMM
17x7.3%US$183.0b
TXN Texas Instruments
36.6x15.4%US$183.4b
NVDA NVIDIA
67.4x23.2%US$3.6t

Price-To-Earnings vs Peers: NVDA is good value based on its Price-To-Earnings Ratio (67.4x) compared to the peer average (78.7x).

Price to Earnings Ratio vs Industry

How does NVDA's PE Ratio compare vs other companies in the US Semiconductor Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TOYO TOYO
4.5xn/aUS$148.87m
SQNS Sequans Communications
1.6x-156.5%US$67.23m
No more companies available in this PE range
NVDA 67.4xIndustry Avg. 30.3xNo. of Companies9PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: NVDA is expensive based on its Price-To-Earnings Ratio (67.4x) compared to the US Semiconductor industry average (30.3x).

Price to Earnings Ratio vs Fair Ratio

What is NVDA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NVDA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio67.4x
Fair PE Ratio62x

Price-To-Earnings vs Fair Ratio: NVDA is expensive based on its Price-To-Earnings Ratio (67.4x) compared to the estimated Fair Price-To-Earnings Ratio (62x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst NVDA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$145.89
US$161.03
+10.4%
13.8%US$200.00US$90.00n/a53
Nov ’25US$135.40
US$150.70
+11.3%
13.0%US$200.00US$90.00n/a53
Oct ’25US$117.00
US$149.80
+28.0%
12.7%US$200.00US$90.00n/a53
Sep ’25US$119.37
US$148.68
+24.6%
13.8%US$200.00US$90.00n/a51
Aug ’25US$109.21
US$139.23
+27.5%
17.3%US$200.00US$85.00n/a51
Jul ’25US$124.30
US$132.34
+6.5%
16.6%US$200.00US$85.00n/a50
Jun ’25US$109.63
US$119.29
+8.8%
11.8%US$140.00US$75.40n/a50
May ’25US$83.04
US$99.90
+20.3%
14.2%US$140.00US$62.00n/a51
Apr ’25US$90.36
US$96.39
+6.7%
15.7%US$140.00US$60.84n/a51
Mar ’25US$82.28
US$88.04
+7.0%
18.0%US$140.00US$21.17n/a51
Feb ’25US$63.03
US$66.63
+5.7%
19.9%US$110.00US$21.17n/a49
Jan ’25US$49.52
US$65.63
+32.5%
19.0%US$110.00US$21.17n/a49
Dec ’24US$46.77
US$65.29
+39.6%
19.4%US$110.00US$21.17n/a50
Nov ’24US$42.33
US$63.91
+51.0%
19.7%US$110.00US$21.17US$135.4049
Oct ’24US$43.50
US$63.87
+46.8%
20.0%US$110.00US$21.17US$117.0049
Sep ’24US$48.51
US$62.97
+29.8%
21.4%US$110.00US$21.17US$119.3749
Aug ’24US$46.51
US$49.26
+5.9%
17.0%US$76.70US$21.17US$109.2147
Jul ’24US$42.30
US$46.00
+8.7%
16.9%US$71.00US$21.17US$124.3045
Jun ’24US$39.77
US$43.02
+8.2%
21.1%US$60.00US$20.60US$109.6345
May ’24US$28.91
US$28.15
-2.6%
14.7%US$35.50US$19.00US$83.0444
Apr ’24US$27.78
US$27.51
-1.0%
15.0%US$35.00US$17.50US$90.3644
Mar ’24US$22.70
US$25.10
+10.6%
16.6%US$35.00US$11.00US$82.2841
Feb ’24US$20.94
US$20.57
-1.8%
20.0%US$32.00US$11.00US$63.0341
Jan ’24US$14.61
US$20.25
+38.5%
19.9%US$32.00US$11.00US$49.5242
Dec ’23US$17.14
US$20.36
+18.8%
20.6%US$32.00US$11.00US$46.7741
Nov ’23US$13.54
US$19.90
+46.9%
24.4%US$32.00US$11.00US$42.3341

Analyst Forecast: Target price is less than 20% higher than the current share price.

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