Financial statement analysis and common stock valuation

Capital Asset Pricing Model (CAPM)

CAPM is a theory concentrated with deriving the expected rates of return on risky assets based on the assets’ systematic risk levels. Systematic risk is the variability of returns that is due to macroeconomic factors that affect all risky assets. It cannot be eliminated by diversification.

• Rates of Return
• Variance and Covariance
• Systematic Risk (β) Estimation
• Expected Rate of Return

Analysis of Profitability Ratios

Measures the income of NVIDIA Corp. relative to its revenues and invested capital.

• Profitability Ratios (Summary)
• Gross Profit Margin
• Operating Profit Margin
• Net Profit Margin
• Return on Equity (ROE)
• Return on Assets (ROA)

Dividend Discount Model (DDM)

The dividend discount model (DDM) is a technique for estimating the value of a share of NVIDIA Corp. common stock issue as the present value of all future dividends.

• Intrinsic Stock Value (Valuation Summary)
• Required Rate of Return (r)
• Dividend Growth Rate (g)

Analysis of Debt

• Total Debt (Carrying Amount)
• Total Debt (Fair Value)
• Weighted-average Interest Rate on Debt

Cash Flow Statement

The cash flow statement provides information about NVIDIA Corp. cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on NVIDIA Corp. balance sheet.

Analysis of Revenues

• Revenues as Reported

Cash Flow Statement
Quarterly Data

The cash flow statement provides information about NVIDIA Corp. cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on NVIDIA Corp. balance sheet.

Balance Sheet: Assets
Quarterly Data

The assets reports major classes and amounts of resources owned or controlled by NVIDIA Corp..

Common-Size Balance Sheet: Assets

Assets components shown as percentage of total assets.

Common-Size Balance Sheet: Assets
Quarterly Data

Assets components shown as percentage of total assets.

Analysis of Liquidity Ratios
Quarterly Data

Measures the adequacy of a NVIDIA Corp. cash resources to meet its near-term cash obligations.

• Liquidity Ratios (Summary)
• Current Ratio
• Quick Ratio
• Cash Ratio

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
Quarterly Data

Liabilities and stockholders’ equity components shown as percentage of total liabilities and stockholders’ equity.