Stock Analysis on Net
Stock Analysis on Net
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NVIDIA Corp. (NASDAQ:NVDA)

Common Stock Valuation Ratios (Price Multiples)

Beginner level

Current Valuation Ratios

NVIDIA Corp., current price multiples

Microsoft Excel LibreOffice Calc
NVIDIA Corp. Advanced Micro Devices Inc. Analog Devices Inc. Apple Inc. Applied Materials Inc. Broadcom Inc. Cisco Systems Inc. Intel Corp. Lam Research Corp. Micron Technology Inc. Qualcomm Inc. Texas Instruments Inc. Technology Hardware & Equipment Technology
Selected Financial Data
Current share price (P) $521.40
No. shares of common stock outstanding 617,000,000
Growth rate (g) 21.93%
 
Earnings per share (EPS) $4.53
Next year expected EPS $5.53
Operating profit per share $4.61
Sales per share $17.70
Book value per share (BVPS) $19.78
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 115.06 273.65 31.71 35.58 20.03 55.13 14.77 10.39 21.77 8.75 30.48 25.91 28.86 32.51
Price to next year expected earnings 94.36 351.07 30.27 26.67 16.86 54.57 13.34 9.22 17.83 7.04 27.87 21.45 24.20 27.88
Price-earnings-growth (PEG) 5.25 6.70 1.06 1.07 53.36 1.37 0.82 0.99 0.36 3.26 1.25 1.50 1.96
Price to operating profit (P/OP) 113.04 147.88 25.26 30.75 16.18 43.14 12.16 9.93 18.33 7.49 17.43 22.72 24.78 28.69
Price to sales (P/S) 29.47 13.86 7.21 7.56 3.71 6.57 3.36 3.04 4.88 2.36 5.51 9.04 6.53 7.45
Price to book value (P/BV) 26.36 33.01 3.69 21.73 6.60 5.96 4.37 2.82 9.48 1.54 27.23 14.60 10.80 9.68

Based on: 10-K (filing date: 2020-02-20).

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 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016 Jan 25, 2015
Price to earnings (P/E) 67.57 22.80 48.05 36.34 28.97 19.77
Price to operating profit (P/OP) 66.38 24.82 45.61 31.30 23.81 16.42
Price to sales (P/S) 17.30 8.06 15.07 8.76 3.55 2.66
Price to book value (P/BV) 15.48 10.10 19.60 10.51 3.98 2.82

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-03-17), 10-K (filing date: 2015-03-12).

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.’s P/E ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 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.’s P/OP ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.
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.’s P/S ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. NVIDIA Corp.’s P/BV ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 not reaching 2018 level.

Price to Earnings (P/E)

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

Microsoft Excel LibreOffice Calc
Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016 Jan 25, 2015
No. shares of common stock outstanding1 612,000,000 606,000,000 605,000,000 589,000,000 542,000,000 549,840,211
Selected Financial Data (US$)
Net income (in millions) 2,796  4,141  3,047  1,666  614  631 
Earnings per share (EPS)2 4.57 6.83 5.04 2.83 1.13 1.15
Share price1, 3 308.70 155.77 242.00 102.79 32.82 22.67
Valuation Ratio
P/E ratio4 67.57 22.80 48.05 36.34 28.97 19.77
Benchmarks
P/E Ratio, Competitors5
Advanced Micro Devices Inc. 169.62 68.76 282.39
Analog Devices Inc. 31.04 22.17 44.94 26.07 27.06
Apple Inc. 20.00 16.07 18.32 13.49 12.46
Applied Materials Inc. 20.25 9.75 16.16 20.68 15.88
Broadcom Inc. 47.09 8.14 63.27 28.48
Cisco Systems Inc. 15.46 17.69 1,964.84 16.37 14.69 14.82
Intel Corp. 13.91 10.41 22.15 16.72 11.85
Lam Research Corp. 24.22 13.64 11.70 15.33 15.82 17.38
Micron Technology Inc. 7.98 3.40 9.20 6.25
Qualcomm Inc. 22.03 31.96 17.37 17.18
Texas Instruments Inc. 24.47 18.05 27.77 21.45 17.66
P/E Ratio, Sector
Technology Hardware & Equipment 19.47 16.73 20.19 16.96 13.48
P/E Ratio, Industry
Technology 24.18 23.18 27.34 21.75 19.33

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-03-17), 10-K (filing date: 2015-03-12).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 2,796,000,000 ÷ 612,000,000 = 4.57

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

4 2020 Calculation
P/E ratio = Share price ÷ EPS
= 308.70 ÷ 4.57 = 67.57

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.’s P/E ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

Price to Operating Profit (P/OP)

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

Microsoft Excel LibreOffice Calc
Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016 Jan 25, 2015
No. shares of common stock outstanding1 612,000,000 606,000,000 605,000,000 589,000,000 542,000,000 549,840,211
Selected Financial Data (US$)
Income from operations (in millions) 2,846  3,804  3,210  1,934  747  759 
Operating profit per share2 4.65 6.28 5.31 3.28 1.38 1.38
Share price1, 3 308.70 155.77 242.00 102.79 32.82 22.67
Valuation Ratio
P/OP ratio4 66.38 24.82 45.61 31.30 23.81 16.42
Benchmarks
P/OP Ratio, Competitors5
Advanced Micro Devices Inc. 91.66 51.38 59.52
Analog Devices Inc. 24.74 17.62 30.97 21.85 22.69
Apple Inc. 17.29 13.49 14.44 10.27 9.34
Applied Materials Inc. 16.36 6.74 14.35 16.54 12.92
Broadcom Inc. 36.85 19.42 44.93 23.80
Cisco Systems Inc. 12.73 14.46 17.56 13.14 12.46 12.36
Intel Corp. 13.29 9.40 11.86 13.40 9.66
Lam Research Corp. 20.40 12.12 8.66 13.68 13.46 14.45
Micron Technology Inc. 6.83 3.20 7.98 106.63 6.04
Qualcomm Inc. 12.60 103.26 30.15 15.26 15.68
Texas Instruments Inc. 21.46 15.00 16.81 16.07 12.34
P/OP Ratio, Sector
Technology Hardware & Equipment 16.72 13.41 15.17 13.01 10.50
P/OP Ratio, Industry
Technology 21.34 17.83 19.87 17.13 14.77

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-03-17), 10-K (filing date: 2015-03-12).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
Operating profit per share = Income from operations ÷ No. shares of common stock outstanding
= 2,846,000,000 ÷ 612,000,000 = 4.65

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

4 2020 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 308.70 ÷ 4.65 = 66.38

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.’s P/OP ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

Price to Sales (P/S)

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

Microsoft Excel LibreOffice Calc
Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016 Jan 25, 2015
No. shares of common stock outstanding1 612,000,000 606,000,000 605,000,000 589,000,000 542,000,000 549,840,211
Selected Financial Data (US$)
Revenue (in millions) 10,918  11,716  9,714  6,910  5,010  4,682 
Sales per share2 17.84 19.33 16.06 11.73 9.24 8.51
Share price1, 3 308.70 155.77 242.00 102.79 32.82 22.67
Valuation Ratio
P/S ratio4 17.30 8.06 15.07 8.76 3.55 2.66
Benchmarks
P/S Ratio, Competitors5
Advanced Micro Devices Inc. 8.59 3.58 2.28 3.08 0.38
Analog Devices Inc. 7.06 5.35 6.40 6.57 5.49
Apple Inc. 4.25 3.60 3.86 2.86 2.85
Applied Materials Inc. 3.75 1.87 3.82 3.29 2.26
Broadcom Inc. 5.62 4.78 6.07 5.48 5.69
Cisco Systems Inc. 3.52 3.96 4.38 3.28 3.20 2.71
Intel Corp. 4.07 3.09 3.39 2.90 2.44
Lam Research Corp. 5.43 3.10 2.51 3.25 2.46 2.17
Micron Technology Inc. 2.15 1.58 2.30 1.44 1.12
Qualcomm Inc. 3.98 3.37 3.54 4.21 3.58
Texas Instruments Inc. 8.54 6.38 6.83 5.77 4.06
P/S Ratio, Sector
Technology Hardware & Equipment 4.41 3.76 3.91 3.16 2.81
P/S Ratio, Industry
Technology 5.54 4.82 5.06 4.20 3.72

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-03-17), 10-K (filing date: 2015-03-12).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= 10,918,000,000 ÷ 612,000,000 = 17.84

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

4 2020 Calculation
P/S ratio = Share price ÷ Sales per share
= 308.70 ÷ 17.84 = 17.30

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.’s P/S ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

Price to Book Value (P/BV)

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

Microsoft Excel LibreOffice Calc
Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016 Jan 25, 2015
No. shares of common stock outstanding1 612,000,000 606,000,000 605,000,000 589,000,000 542,000,000 549,840,211
Selected Financial Data (US$)
Shareholders’ equity (in millions) 12,204  9,342  7,471  5,762  4,469  4,418 
Book value per share (BVPS)2 19.94 15.42 12.35 9.78 8.25 8.04
Share price1, 3 308.70 155.77 242.00 102.79 32.82 22.67
Valuation Ratio
P/BV ratio4 15.48 10.10 19.60 10.51 3.98 2.82
Benchmarks
P/BV Ratio, Competitors5
Advanced Micro Devices Inc. 20.46 18.30 19.87 31.66
Analog Devices Inc. 3.61 3.02 3.22 4.35 3.72
Apple Inc. 12.21 8.93 6.61 4.81 5.57
Applied Materials Inc. 6.67 4.73 5.94 4.93 2.87
Broadcom Inc. 5.09 3.74 5.28 3.84 8.24
Cisco Systems Inc. 4.57 6.12 5.00 2.38 2.48 2.23
Intel Corp. 3.78 2.94 3.08 2.60 2.21
Lam Research Corp. 10.55 6.39 4.28 3.82 2.45 2.23
Micron Technology Inc. 1.40 1.49 2.51 1.48 1.47
Qualcomm Inc. 19.69 82.57 2.56 3.12 2.88
Texas Instruments Inc. 13.79 11.20 9.89 7.36 5.30
P/BV Ratio, Sector
Technology Hardware & Equipment 7.28 6.06 4.65 3.72 3.75
P/BV Ratio, Industry
Technology 7.20 6.25 5.50 4.51 4.34

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-03-17), 10-K (filing date: 2015-03-12).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
BVPS = Shareholders’ equity ÷ No. shares of common stock outstanding
= 12,204,000,000 ÷ 612,000,000 = 19.94

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

4 2020 Calculation
P/BV ratio = Share price ÷ BVPS
= 308.70 ÷ 19.94 = 15.48

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’s required rate of return and its actual rate of return. NVIDIA Corp.’s P/BV ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 not reaching 2018 level.