Stock Analysis on Net

NVIDIA Corp. (NASDAQ:NVDA)

Price to FCFE (P/FCFE) 

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Free Cash Flow to Equity (FCFE)

NVIDIA Corp., FCFE calculation

US$ in millions

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12 months ended: Jan 30, 2022 Jan 31, 2021 Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017
Net income 9,752  4,332  2,796  4,141  3,047  1,666 
Net noncash charges 2,719  2,193  1,248  459  270  685 
Changes in operating assets and liabilities, net of acquisitions (3,363) (703) 717  (857) 185  (679)
Net cash provided by operating activities 9,108  5,822  4,761  3,743  3,502  1,672 
Purchases related to property and equipment and intangible assets (976) (1,128) (489) (600) (593) (176)
Issuance of debt, net of issuance costs 4,977  4,968  —  —  —  1,988 
Repayment of debt (1,000) —  —  (16) (812) (673)
Free cash flow to equity (FCFE) 12,109  9,662  4,272  3,127  2,097  2,811 

Based on: 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).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to NVIDIA Corp. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. NVIDIA Corp. FCFE increased from 2020 to 2021 and from 2021 to 2022.

Price to FCFE Ratio, Current

NVIDIA Corp., current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding 2,510,000,000
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 12,109 
FCFE per share 4.82
Current share price (P) 181.77
Valuation Ratio
P/FCFE 37.68
Benchmarks
P/FCFE, Competitors1
Advanced Micro Devices Inc. 51.57
Analog Devices Inc. 30.90
Applied Materials Inc. 21.62
Broadcom Inc. 21.16
Intel Corp. 13.22
Lam Research Corp. 29.89
Micron Technology Inc. 39.49
Qualcomm Inc. 18.09
Texas Instruments Inc. 22.29
P/FCFE, Sector
Semiconductors & Semiconductor Equipment 25.85
P/FCFE, Industry
Information Technology 26.19

Based on: 10-K (reporting date: 2022-01-30).

1 Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.


Price to FCFE Ratio, Historical

NVIDIA Corp., historical P/FCFE calculation, comparison to benchmarks

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Jan 30, 2022 Jan 31, 2021 Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017
No. shares of common stock outstanding1 2,510,000,000 2,480,000,000 2,448,000,000 2,424,000,000 2,420,000,000 2,356,000,000
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 12,109  9,662  4,272  3,127  2,097  2,811 
FCFE per share3 4.82 3.90 1.75 1.29 0.87 1.19
Share price1, 4 264.53 137.15 77.18 38.94 60.50 25.70
Valuation Ratio
P/FCFE5 54.83 35.20 44.23 30.19 69.82 21.54
Benchmarks
P/FCFE, Competitors6
Advanced Micro Devices Inc. 44.72 133.51
Analog Devices Inc. 34.23 33.98 37.52 50.53 4.66
Applied Materials Inc. 27.20 23.21 19.53 10.21 10.60
Broadcom Inc. 22.34 9.15 5.62 13.28 11.06
Intel Corp. 14.25 8.57 16.55 18.81 21.34
Lam Research Corp. 34.58 16.89 6.14 14.02 141.80
Micron Technology Inc. 37.24 81.71 13.92 11.22
Qualcomm Inc. 17.93 34.91 16.39 5.55
Texas Instruments Inc. 21.87 24.10 18.77 14.27 19.88
P/FCFE, Sector
Semiconductors & Semiconductor Equipment 24.76 17.61 14.23 26.12 12.59
P/FCFE, Industry
Information Technology 27.58 24.34 19.93 22.23 12.29

Based on: 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).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2022 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 12,109,000,000 ÷ 2,510,000,000 = 4.82

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

5 2022 Calculation
P/FCFE = Share price ÷ FCFE per share
= 264.53 ÷ 4.82 = 54.83

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. NVIDIA Corp. P/FCFE ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.