Now trading at a price of $158.22, NVIDIA has moved -0.5% so far today on a volume of 9,990,193, compared to its average of 48,852,501. In contrast, the S&P 500 index moved 0.5%.
NVIDIA shares moved -43.2% over the last 52 weeks, with a high of $289.46 and a low of $108.13. During this time, the stock lagged the S&P 500 index by -26.1%. As of January 2022, the company's 50-day average price is $155.8204. NVIDIA Corporation provides graphics, and compute and networking solutions in the United States, Taiwan, China, and internationally. The large-cap Technology company has 22,473 full time employees and is based in Santa Clara, CA. NVIDIA has returned a 0.1% dividend yield over the last 12 months.
The Company Has a Pattern of Improving Cash Flows with an Upwards Trend:
| 2019-01-31 | 2020-01-31 | 2021-01-31 | 2022-01-31 | |
|---|---|---|---|---|
| Revenue (MM) | $11,716 | $10,918 | $16,675 | $26,914 |
| Revenue Growth | n/a | -6.81% | 52.73% | 61.4% |
| Gross Margins | 61.2% | 62.0% | 62.3% | 64.9% |
| Gross Margins Growth | n/a | 1.31% | 0.48% | 4.17% |
| Operating Margins | 32.5% | 26.1% | 27.2% | 37.3% |
| Operating Margins Growth | n/a | -19.69% | 4.21% | 37.13% |
| Earnings Per Share | $1.66 | $1.13 | $1.72 | $3.85 |
| EPS Growth | n/a | -31.93% | 52.21% | 123.84% |
| Free Cash Flow (MM) | $3,143 | $4,272 | $4,694 | $8,132 |
| FCF Growth | n/a | 35.92% | 9.88% | 73.24% |
| Capital Expenditures (MM) | -$600 | -$489 | -$1,128 | -$976 |
| Net Debt / EBITDA | 0.29 | -2.59 | 1.1 | 0.79 |
NVIDIA Is Reasonably Priced According to Its EPS Growth Rate:
Compared to the Technology sector's average of 26.5, NVIDIA has a trailing twelve month P/E ratio of 42.4 and, according to its EPS guidance of 4.33, an expected P/E ratio of 36.5. NVIDIA's PEG ratio is 1.09 based on its 39.0% average growth rate of historical and projected earnings per share. This implies that the company's shares are fairly valued.
However, NVIDIA's P/B ratio is 18.3 compared to its sector average of 5.57. The company is likely overvalued in terms of its equity.
Additionally, the company's shares are currently trading 684.5% above their fair value as expressed by Benjamin Graham's formula:
√(22.5 * 4-year average EPS * book value per share) = √(22.5 * 2.09 * 8.65) = $20.17
NVIDIA Is the Subject of Mixed Market Indicators:
39 analysts are following NVIDIA and have set target prices ranging from $110 to $320 per share. On average, they have given the company a rating of buy. At the current price of $158.22, NVDA is trading -19.27% away from its average analyst target price of $195.98 per share, implying an analyst consensus of some upside potential for the stock.
The company has a very low short interest since 1.4% of the company's shares are tied to short positions. Institutions own 67.2% of NVIDIA's shares, while the insider ownership rate stands at 4.19%. The biggest shareholder is the Vanguard Group, Inc. with a 8% stake in the company worth approximately $30,533,388,015.
