NVIDIA Stock in Brief

Now trading at a price of $518.42, NVIDIA has moved -0.8% so far today.

NVIDIA returned gains of 228.4% last year, with its stock price reaching a high of $525.25 and a low of $154.72. Over the same period, the stock outperformed the S&P 500 index by 206.9%. More recently, the company's 50-day average price was $473.48. NVIDIA Corporation provides graphics, and compute and networking solutions in the United States, Taiwan, China, and internationally. Based in Santa Clara, CA, the large-cap Technology company has 26,196 full time employees. NVIDIA has offered a 0.0% dividend yield over the last 12 months.

Overview of the Company's Finances:

2018 2019 2020 2021 2022 2023
Revenue (MM) $9,714 $11,716 $10,918 $16,675 $26,914 $26,974
Revenue Growth n/a 20.61% -6.81% 52.73% 61.4% 0.22%
Operating Margins 33% 32% 26% 27% 37% 16%
Net Margins 31% 35% 26% 26% 36% 16%
Net Income (MM) $3,047 $4,141 $2,796 $4,332 $9,752 $4,368
Net Interest Expense (MM) $61 $58 $52 $184 $236 -$262
Depreciation & Amort. (MM) $199 $262 $381 $1,098 $1,174 $1,544
Earnings Per Share $1.22 $1.68 $1.11 $1.71 $3.9 $1.75
EPS Growth n/a 37.7% -33.93% 54.05% 128.07% -55.13%
Diluted Shares (MM) 2,500 2,472 2,520 2,538 2,499 2,494
Capital Expenditures (MM) $593 $600 $212 $157 $258 $374
Current Ratio 7.08 8.42 3.92 7.14 3.39 3.59
Total Debt (MM) $2,002 $1,990 $7,959 $10,944 $12,199 $10,955
Net Debt / EBITDA 0.38 -1.91 1.77 1.72 0.84 0.94

NVIDIA has growing revenues and decreasing reinvestment in the business and positive EPS growth. Additionally, the company's financial statements display irregular cash flows and healthy leverage. Furthermore, NVIDIA has average net margins with a negative growth trend.

NVIDIA's P/B and P/E Ratios Are Higher Than Average:

NVIDIA has a trailing twelve month P/E ratio of 62.5, compared to an average of 35.0 for the Technology sector. Based on its EPS guidance of $20.44, the company has a forward P/E ratio of 23.2. According to the 49.6% compound average growth rate of NVIDIA's historical and projected earnings per share, the company's PEG ratio is 1.26. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 11.3%. On this basis, the company's PEG ratio is 5.54. This suggests that these shares are overvalued. Furthermore, NVIDIA is likely overvalued compared to the book value of its equity, since its P/B ratio of 38.43 is higher than the sector average of 7.92. The company's shares are currently trading 2161.9% above their Graham number.

NVIDIA Has an Average Rating of Buy:

The 47 analysts following NVIDIA have set target prices ranging from $410.0 to $1100.0 per share, for an average of $636.68 with a buy rating. As of April 2023, the company is trading -25.6% away from its average target price, indicating that there is an analyst consensus of some upside potential.

NVIDIA has a very low short interest because 1.1% of the company's shares are sold short. Institutions own 68.4% of the company's shares, and the insider ownership rate stands at 4.04%, suggesting a large amount of insider shareholders. The largest shareholder is Vanguard Group Inc, whose 8% stake in the company is worth $105,563,205,461.

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.