Stock Analysis on Net

NVIDIA Corp. (NASDAQ:NVDA)

Common Stock Valuation Ratios (Price Multiples) 

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Current Valuation Ratios

NVIDIA Corp., current price multiples

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NVIDIA Corp. Advanced Micro Devices Inc. Analog Devices Inc. Applied Materials Inc. Broadcom Inc. Intel Corp. Lam Research Corp. Micron Technology Inc. Qualcomm Inc. Texas Instruments Inc. Semiconductors & Semiconductor Equipment Information Technology
Selected Financial Data
Current share price (P) $181.77
No. shares of common stock outstanding 2,510,000,000
Growth rate (g) 29.75%
 
Earnings per share (EPS) $3.89
Next year expected EPS $5.04
Operating profit per share $4.00
Sales per share $10.72
Book value per share (BVPS) $10.60
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 46.78 52.52 61.66 17.53 38.57 9.14 18.18 14.19 17.30 20.77 25.32 28.03
Price to next year expected earnings 36.06 36.87 59.62 13.54 39.00 7.82 13.94 12.05 14.96 16.65 21.86 23.11
Price-earnings-growth (PEG) 1.57 1.24 18.02 0.59 0.54 0.60 0.80 1.10 0.84 1.60 1.32
Price to operating profit (P/OP) 45.44 45.52 50.67 14.98 29.15 9.33 15.85 13.24 15.98 18.01 23.07 24.70
Price to sales (P/S) 16.95 10.10 11.72 4.48 9.05 2.30 4.86 3.00 4.66 8.80 6.48 7.31
Price to book value (P/BV) 17.14 22.15 2.26 8.43 9.95 1.90 11.79 1.89 15.72 12.10 6.39 11.21

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

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

NVIDIA Corp., historical price multiples

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Jan 30, 2022 Jan 31, 2021 Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017
Price to earnings (P/E) 68.09 78.52 67.57 22.79 48.05 36.34
Price to operating profit (P/OP) 66.13 75.05 66.39 24.81 45.61 31.31
Price to sales (P/S) 24.67 20.40 17.31 8.06 15.07 8.76
Price to book value (P/BV) 24.95 20.13 15.48 10.10 19.60 10.51

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).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. NVIDIA Corp. P/E ratio increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. NVIDIA Corp. P/OP ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. NVIDIA Corp. P/S ratio increased from 2020 to 2021 and from 2021 to 2022.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. NVIDIA Corp. P/BV ratio increased from 2020 to 2021 and from 2021 to 2022.

Price to Earnings (P/E)

NVIDIA Corp., historical P/E 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$)
Net income (in millions) 9,752  4,332  2,796  4,141  3,047  1,666 
Earnings per share (EPS)2 3.89 1.75 1.14 1.71 1.26 0.71
Share price1, 3 264.53 137.15 77.18 38.94 60.50 25.70
Valuation Ratio
P/E ratio4 68.09 78.52 67.57 22.79 48.05 36.34
Benchmarks
P/E Ratio, Competitors5
Advanced Micro Devices Inc. 45.54 41.66 169.62 68.76 282.39
Analog Devices Inc. 68.31 41.43 31.04 22.17 44.94
Applied Materials Inc. 22.05 22.31 20.25 9.75 16.16
Broadcom Inc. 40.73 66.37 47.09 8.14 63.27
Intel Corp. 9.85 11.02 13.91 10.41 22.15
Lam Research Corp. 21.03 24.22 13.64 11.70 15.33
Micron Technology Inc. 13.38 21.80 7.98 3.40 9.20
Qualcomm Inc. 17.15 28.06 22.03 31.96
Texas Instruments Inc. 20.38 27.95 24.47 18.05 27.77
P/E Ratio, Sector
Semiconductors & Semiconductor Equipment 24.25 25.22 19.30 13.74 24.40
P/E Ratio, Industry
Information Technology 29.52 32.90 24.56 24.15 24.68

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 2022 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 9,752,000,000 ÷ 2,510,000,000 = 3.89

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

4 2022 Calculation
P/E ratio = Share price ÷ EPS
= 264.53 ÷ 3.89 = 68.09

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. NVIDIA Corp. P/E ratio increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level.

Price to Operating Profit (P/OP)

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

Microsoft Excel LibreOffice Calc
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$)
Income from operations (in millions) 10,041  4,532  2,846  3,804  3,210  1,934 
Operating profit per share2 4.00 1.83 1.16 1.57 1.33 0.82
Share price1, 3 264.53 137.15 77.18 38.94 60.50 25.70
Valuation Ratio
P/OP ratio4 66.13 75.05 66.39 24.81 45.61 31.31
Benchmarks
P/OP Ratio, Competitors5
Advanced Micro Devices Inc. 39.48 75.77 91.66 51.38 59.52
Analog Devices Inc. 56.12 33.76 24.74 17.62 30.97
Applied Materials Inc. 18.85 18.50 16.36 6.74 14.35
Broadcom Inc. 30.77 44.03 36.85 19.42 44.93
Intel Corp. 10.06 9.72 13.29 9.40 11.86
Lam Research Corp. 18.34 20.40 12.12 8.66 13.68
Micron Technology Inc. 12.48 19.51 6.83 3.20 7.98
Qualcomm Inc. 15.84 23.32 12.60 103.26 30.15
Texas Instruments Inc. 17.67 26.53 21.46 15.00 16.81
P/OP Ratio, Sector
Semiconductors & Semiconductor Equipment 22.10 22.42 16.64 12.52 16.75
P/OP Ratio, Industry
Information Technology 26.02 28.05 21.21 17.27 18.29

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 2022 Calculation
Operating profit per share = Income from operations ÷ No. shares of common stock outstanding
= 10,041,000,000 ÷ 2,510,000,000 = 4.00

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

4 2022 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 264.53 ÷ 4.00 = 66.13

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. NVIDIA Corp. P/OP ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Price to Sales (P/S)

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

Microsoft Excel LibreOffice Calc
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$)
Revenue (in millions) 26,914  16,675  10,918  11,716  9,714  6,910 
Sales per share2 10.72 6.72 4.46 4.83 4.01 2.93
Share price1, 3 264.53 137.15 77.18 38.94 60.50 25.70
Valuation Ratio
P/S ratio4 24.67 20.40 17.31 8.06 15.07 8.76
Benchmarks
P/S Ratio, Competitors5
Advanced Micro Devices Inc. 8.76 10.63 8.59 3.58 2.28
Analog Devices Inc. 12.98 9.03 7.06 5.35 6.40
Applied Materials Inc. 5.63 4.69 3.75 1.87 3.82
Broadcom Inc. 9.55 7.40 5.62 4.78 6.07
Intel Corp. 2.48 2.96 4.07 3.09 3.39
Lam Research Corp. 5.62 5.43 3.10 2.51 3.25
Micron Technology Inc. 2.83 2.73 2.15 1.58 2.30
Qualcomm Inc. 4.62 6.20 3.98 3.37 3.54
Texas Instruments Inc. 8.63 10.81 8.54 6.38 6.83
P/S Ratio, Sector
Semiconductors & Semiconductor Equipment 6.21 5.80 4.72 3.82 4.13
P/S Ratio, Industry
Information Technology 7.70 7.30 5.69 4.74 4.58

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 2022 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= 26,914,000,000 ÷ 2,510,000,000 = 10.72

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

4 2022 Calculation
P/S ratio = Share price ÷ Sales per share
= 264.53 ÷ 10.72 = 24.67

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. NVIDIA Corp. P/S ratio increased from 2020 to 2021 and from 2021 to 2022.

Price to Book Value (P/BV)

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

Microsoft Excel LibreOffice Calc
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$)
Shareholders’ equity (in millions) 26,612  16,893  12,204  9,342  7,471  5,762 
Book value per share (BVPS)2 10.60 6.81 4.99 3.85 3.09 2.45
Share price1, 3 264.53 137.15 77.18 38.94 60.50 25.70
Valuation Ratio
P/BV ratio4 24.95 20.13 15.48 10.10 19.60 10.51
Benchmarks
P/BV Ratio, Competitors5
Advanced Micro Devices Inc. 19.21 17.77 20.46 18.30 19.87
Analog Devices Inc. 2.50 4.22 3.61 3.02 3.22
Applied Materials Inc. 10.60 7.63 6.67 4.73 5.94
Broadcom Inc. 10.50 7.40 5.09 3.74 5.28
Intel Corp. 2.05 2.84 3.78 2.94 3.08
Lam Research Corp. 13.64 10.55 6.39 4.28 3.82
Micron Technology Inc. 1.79 1.50 1.40 1.49 2.51
Qualcomm Inc. 15.59 24.00 19.69 82.57 2.56
Texas Instruments Inc. 11.87 17.02 13.79 11.20 9.89
P/BV Ratio, Sector
Semiconductors & Semiconductor Equipment 6.12 6.08 5.13 4.57 4.04
P/BV Ratio, Industry
Information Technology 11.80 10.88 8.49 7.42 5.79

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 2022 Calculation
BVPS = Shareholders’ equity ÷ No. shares of common stock outstanding
= 26,612,000,000 ÷ 2,510,000,000 = 10.60

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

4 2022 Calculation
P/BV ratio = Share price ÷ BVPS
= 264.53 ÷ 10.60 = 24.95

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. NVIDIA Corp. P/BV ratio increased from 2020 to 2021 and from 2021 to 2022.