NVIDIA Stock in Brief

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.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.