Stock Analysis on Net

NVIDIA Corp. (NASDAQ:NVDA)

$24.99

Price to Earnings (P/E)
since 2005

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Calculation

NVIDIA Corp., P/E, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26), 10-K (reporting date: 2019-01-27), 10-K (reporting date: 2018-01-28), 10-K (reporting date: 2017-01-29), 10-K (reporting date: 2016-01-31), 10-K (reporting date: 2015-01-25), 10-K (reporting date: 2014-01-26), 10-K (reporting date: 2013-01-27), 10-K (reporting date: 2012-01-29), 10-K (reporting date: 2011-01-30), 10-K (reporting date: 2010-01-31), 10-K (reporting date: 2009-01-25), 10-K (reporting date: 2008-01-27), 10-K (reporting date: 2007-01-28), 10-K (reporting date: 2006-01-29), 10-K (reporting date: 2005-01-30).

1 US$

2 Data adjusted for splits and stock dividends.

3 Closing price as at the filing date of NVIDIA Corp. Annual Report.

The analysis of the financial data reveals several key trends spanning two decades.

Share Price
The share price exhibited a general upward trajectory from 2005 through 2025. It started at a low base near $0.21, showing modest growth and some fluctuations in the initial years through 2014, oscillating mostly below $1. A marked acceleration occurred starting around 2015, with the share price rising significantly, reaching double-digit values by 2021. This upward momentum intensified further from 2021 to 2025, culminating in a substantial increase to over $130 per share by 2025, indicating strong market confidence and investor demand over this period.
Earnings Per Share (EPS)
EPS began at zero in 2005 and remained minimal with marginal increases until around 2014, reflecting limited profitability or earnings growth in the early years. Around 2015, EPS growth became more pronounced, increasing steadily before peaking significantly in 2025 at nearly $3. This suggests improved profitability and operational efficiency, or successful strategic initiatives contributing to greater earnings generation on a per-share basis. The EPS showed a consistent increasing pattern especially after 2014, albeit with some variation in intermediate years.
Price-to-Earnings (P/E) Ratio
The P/E ratio data is partially incomplete but reveals notable patterns in available years. Initially, the P/E ratio was relatively high in 2005 at approximately 43, but it declined to a low of around 14 by 2008, indicating that share prices were less expensive relative to earnings during this period. After 2008, the ratio showed considerable volatility and an overall upward trend, peaking sharply in 2020 with a ratio above 78, followed by further elevated readings nearing 132 in 2023. This trend signifies increasing investor expectations for future growth or market optimism, despite or in conjunction with rising share prices and earnings.

In summary, the data demonstrates a transformation from a low-share-price, low-earnings stage in the early years to a phase characterized by rapid price appreciation and significant earnings improvement after 2014. The P/E ratio fluctuations suggest changing market perceptions of growth potential and valuation sentiment, with recent years reflecting high growth expectations. This pattern indicates a company that has undergone substantial growth and market repositioning over the reported periods.


Comparison to Competitors

NVIDIA Corp., P/E, long-term trends, comparison to competitors

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Based on: 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26), 10-K (reporting date: 2019-01-27), 10-K (reporting date: 2018-01-28), 10-K (reporting date: 2017-01-29), 10-K (reporting date: 2016-01-31), 10-K (reporting date: 2015-01-25), 10-K (reporting date: 2014-01-26), 10-K (reporting date: 2013-01-27), 10-K (reporting date: 2012-01-29), 10-K (reporting date: 2011-01-30), 10-K (reporting date: 2010-01-31), 10-K (reporting date: 2009-01-25), 10-K (reporting date: 2008-01-27), 10-K (reporting date: 2007-01-28), 10-K (reporting date: 2006-01-29), 10-K (reporting date: 2005-01-30).


Comparison to Sector (Semiconductors & Semiconductor Equipment)

NVIDIA Corp., P/E, long-term trends, comparison to sector (semiconductors & semiconductor equipment)

Microsoft Excel

Based on: 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26), 10-K (reporting date: 2019-01-27), 10-K (reporting date: 2018-01-28), 10-K (reporting date: 2017-01-29), 10-K (reporting date: 2016-01-31), 10-K (reporting date: 2015-01-25), 10-K (reporting date: 2014-01-26), 10-K (reporting date: 2013-01-27), 10-K (reporting date: 2012-01-29), 10-K (reporting date: 2011-01-30), 10-K (reporting date: 2010-01-31), 10-K (reporting date: 2009-01-25), 10-K (reporting date: 2008-01-27), 10-K (reporting date: 2007-01-28), 10-K (reporting date: 2006-01-29), 10-K (reporting date: 2005-01-30).


Comparison to Industry (Information Technology)