NVIDIA Valuation

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

Valuation Score

0/6

Valuation Score 0/6

  • 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 ($881.86) is trading above our estimate of fair value ($521.31)

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?

Other financial metrics that can be useful for relative valuation.

NVDA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue35.4x
Enterprise Value/EBITDA62.5x
PEG Ratio3.2x

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 Average33.8x
AVGO Broadcom
53.8x23.4%US$622.9b
QCOM QUALCOMM
24.3x10.1%US$191.3b
ADI Analog Devices
33.9x11.8%US$95.3b
TXN Texas Instruments
23.4x5.3%US$151.4b
NVDA NVIDIA
72.9x22.9%US$2.2t

Price-To-Earnings vs Peers: NVDA is expensive based on its Price-To-Earnings Ratio (72.9x) compared to the peer average (33.8x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a24.3%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a24.3%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: NVDA is expensive based on its Price-To-Earnings Ratio (72.9x) compared to the US Semiconductor industry average (28.8x).


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 Ratio72.9x
Fair PE Ratio55.6x

Price-To-Earnings vs Fair Ratio: NVDA is expensive based on its Price-To-Earnings Ratio (72.9x) compared to the estimated Fair Price-To-Earnings Ratio (55.6x).


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$881.86
US$982.78
+11.4%
14.6%US$1,400.00US$620.00n/a49
Apr ’25US$903.63
US$961.20
+6.4%
15.8%US$1,400.00US$608.40n/a50
Mar ’25US$822.79
US$880.39
+7.0%
18.0%US$1,400.00US$211.67n/a51
Feb ’25US$630.27
US$666.26
+5.7%
19.9%US$1,100.00US$211.67n/a49
Jan ’25US$495.22
US$656.26
+32.5%
19.0%US$1,100.00US$211.67n/a49
Dec ’24US$467.65
US$652.94
+39.6%
19.4%US$1,100.00US$211.67n/a50
Nov ’24US$423.25
US$639.11
+51.0%
19.7%US$1,100.00US$211.67n/a49
Oct ’24US$434.99
US$638.72
+46.8%
20.0%US$1,100.00US$211.67n/a49
Sep ’24US$485.09
US$629.70
+29.8%
21.4%US$1,100.00US$211.67n/a49
Aug ’24US$465.07
US$492.61
+5.9%
17.0%US$767.00US$211.67n/a47
Jul ’24US$423.02
US$460.00
+8.7%
16.9%US$710.00US$211.67n/a45
Jun ’24US$397.70
US$430.22
+8.2%
21.1%US$600.00US$206.00n/a45
May ’24US$289.10
US$281.49
-2.6%
14.7%US$355.00US$190.00n/a44
Apr ’24US$277.77
US$275.08
-1.0%
15.0%US$350.00US$175.00US$903.6344
Mar ’24US$226.98
US$250.99
+10.6%
16.6%US$350.00US$110.00US$822.7941
Feb ’24US$209.43
US$205.68
-1.8%
20.0%US$320.00US$110.00US$630.2741
Jan ’24US$146.14
US$202.45
+38.5%
19.9%US$320.00US$110.00US$495.2242
Dec ’23US$171.35
US$203.56
+18.8%
20.6%US$320.00US$110.00US$467.6541
Nov ’23US$135.43
US$199.01
+46.9%
24.4%US$320.00US$110.00US$423.2541
Oct ’23US$121.39
US$205.86
+69.6%
22.8%US$320.00US$110.00US$434.9942
Sep ’23US$139.37
US$212.50
+52.5%
21.3%US$320.00US$110.00US$485.0940
Aug ’23US$184.41
US$236.08
+28.0%
23.4%US$400.00US$130.00US$465.0738
Jul ’23US$145.23
US$252.10
+73.6%
23.3%US$410.00US$130.00US$423.0239
Jun ’23US$183.20
US$255.18
+39.3%
22.7%US$410.00US$130.00US$397.7040
May ’23US$185.47
US$325.68
+75.6%
17.4%US$410.00US$160.00US$289.1040
Apr ’23US$267.12
US$338.51
+26.7%
15.1%US$410.00US$200.00US$277.7739

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


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