NVIDIA Valuation
| NVD Stock | 131.06 5.56 4.43% |
At this time, the firm appears to be overvalued. NVIDIA secures a last-minute Real Value of USD104.52 per share. The latest price of the firm is USD131.06. Our model forecasts the value of NVIDIA from inspecting the firm fundamentals such as return on equity of 0.18, and Profit Margin of 0.16 % as well as reviewing its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that NVIDIA's price fluctuation is very steady at this time. Calculation of the real value of NVIDIA is based on 3 months time horizon. Increasing NVIDIA's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
NVIDIA's intrinsic value may or may not be the same as its current market price of 131.06, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 131.06 | Real 104.52 | Hype 131.06 | Naive 125.73 |
The intrinsic value of NVIDIA's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence NVIDIA's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of NVIDIA helps investors to forecast how NVIDIA stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of NVIDIA more accurately as focusing exclusively on NVIDIA's fundamentals will not take into account other important factors: NVIDIA Total Value Analysis
NVIDIA is now forecasted to have takeover price of 394.84 B with market capitalization of 522.03 B, debt of 9.7 B, and cash on hands of . Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the NVIDIA fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
394.84 B | 522.03 B | 9.7 B |
NVIDIA Investor Information
About 68.0% of the company shares are owned by institutional investors. The company last dividend was issued on the 7th of March 2023. NVIDIA had 1:10 split on the 9th of June 2024. Based on the key measurements obtained from NVIDIA's financial statements, NVIDIA is not in a good financial situation at the moment. It has a very high risk of going through financial straits in January.NVIDIA Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. NVIDIA has an asset utilization ratio of 65.5 percent. This implies that the Company is making USD0.65 for each dollar of assets. An increasing asset utilization means that NVIDIA is more efficient with each dollar of assets it utilizes for everyday operations.NVIDIA Ownership Allocation
NVIDIA maintains a total of 2.47 Billion outstanding shares. Over half of NVIDIA's outstanding shares are owned by institutional investors. These institutional investors are typically referred to as corporate investors that shop for positions in a given instrument to benefit from reduced trade commissions. Therefore, these institutions are subject to different rules and regulations than regular investors in NVIDIA. Please watch out for any change in the institutional holdings of NVIDIA as this could mean something significant has changed or is about to change at the company. Please note that no matter how many assets the company has, if the real value of the firm is less than the current market value, you may not be able to make money on it.NVIDIA Profitability Analysis
The company reported the revenue of 26.97 B. Net Income was 4.37 B with profit before overhead, payroll, taxes, and interest of 15.36 B.About NVIDIA Valuation
The stock valuation mechanism determines NVIDIA's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of NVIDIA based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of NVIDIA. We calculate exposure to NVIDIA's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of NVIDIA's related companies.8 Steps to conduct NVIDIA's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates NVIDIA's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct NVIDIA's valuation analysis, follow these 8 steps:- Gather financial information: Obtain NVIDIA's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine NVIDIA's revenue streams: Identify NVIDIA's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research NVIDIA's industry and market trends, including the size of the market, growth rate, and competition.
- Establish NVIDIA's growth potential: Evaluate NVIDIA's management, business model, and growth potential.
- Determine NVIDIA's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate NVIDIA's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Additional Tools for NVIDIA Stock Analysis
When running NVIDIA's price analysis, check to measure NVIDIA's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy NVIDIA is operating at the current time. Most of NVIDIA's value examination focuses on studying past and present price action to predict the probability of NVIDIA's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move NVIDIA's price. Additionally, you may evaluate how the addition of NVIDIA to your portfolios can decrease your overall portfolio volatility.