NVIDIA Corp. (NASDAQ:NVDA)

The financial ratios over the observed periods reveal notable fluctuations and trends that characterize the valuation and market perception of the company.

Price to Earnings (P/E) Ratio

The P/E ratio exhibits significant volatility throughout the timeframe. Starting at 65.08, it ascends sharply to a peak of 200.72 around mid-2023, indicating heightened market expectations or possibly elevated stock price relative to earnings at that point. Subsequently, the ratio declines, stabilizing in the 40s to 60s range in the later periods, which may suggest a normalization of earnings expectations or price adjustment.

Price to Operating Profit (P/OP) Ratio

This ratio closely mirrors the trend observed in the P/E ratio, beginning at 62.35 and rising markedly to a maximum of approximately 213.98 in mid-2023, signaling similar market sentiment as reflected in price relative to operating profits. The decline following this peak is also pronounced, with the ratio falling back towards lower levels comparable to the early periods, indicating changes in investor appraisal of operational profitability over time.

Price to Sales (P/S) Ratio

The P/S ratio shows a generally upward trend with more variability compared to the P/E and P/OP ratios. Starting at 18.34, the ratio increases significantly, peaking around the mid- to late-2023 periods near 37.18, and then fluctuates moderately but remains elevated above initial levels. This suggests sustained higher valuations relative to sales, implying either price appreciation outpacing sales growth or increased investor confidence in sales generation capacity.

Price to Book Value (P/BV) Ratio

The P/BV ratio also escalates over the time periods, starting from 16.49 and reaching a peak above 57 in early 2024. This indicates a marked increase in market valuation relative to the company's book value. Although some fluctuations occur after the peak, the ratio remains substantially higher than at the start, reflecting strong investor confidence in the company's net asset value.

Overall, the data portrays a period of pronounced elevation in valuation multiples, particularly between 2022 and 2024, followed by a correction or stabilization phase. The peaks in all examined valuation ratios around mid-2023 suggest a phase of heightened market optimism or speculative interest, followed by a tempering of expectations in subsequent quarters. The persistence of ratios above early period levels indicates a generally favorable long-term shift in market valuation relative to earnings, operating profits, sales, and book value.

Share Price Trends

The share price shows a general upward trajectory over the analyzed periods. Starting at $8.78, it increased steadily with some fluctuations, reaching above $30 by late 2021. After a temporary dip into the $15–$18 range through mid-2022, the price surged again, surpassing $100 by early 2024. It peaked at $181.60 toward mid-2025, indicating strong market valuation growth with periods of volatility.

Earnings Per Share (EPS) Trends

EPS exhibits consistent growth with minor setbacks. Beginning at $0.13, EPS rose gradually through 2020 and 2021, reaching around $0.39 by early 2022. Although there were some decreases toward late 2022, EPS rebounded substantially in 2023 and sustained an upward trend, reaching $3.56 by mid-2025. This suggests significant improvements in profitability over the period.

Price-to-Earnings (P/E) Ratio Trends

The P/E ratio fluctuated markedly, reflecting changes in market expectations relative to earnings. Initially high at 65.08, it increased to a peak of 131.7 in early 2023 and even 200.72 shortly thereafter, corresponding to periods where share price rose faster than earnings. Subsequent quarters show the ratio decreasing to the 40–60 range by mid-2025, indicating a recalibration toward more moderate valuation multiples as earnings grew faster.

Summary Insights

Overall, both share price and EPS demonstrated strong growth, especially post-2022, with EPS growth outpacing price increases in later periods, leading to declining P/E ratios after early 2023 peaks. The initial high valuation multiples suggest optimistic investor sentiment, while normalization in the P/E ratio in recent quarters may indicate market adjustment to improved but more predictable earnings performance. Temporary declines in share price and EPS during late 2022 highlight transient challenges that were subsequently overcome.

Share Price Trend

The share price demonstrated a pronounced upward trajectory over the observed quarters. It started at $8.78 and showed steady growth with some fluctuations, hitting notable peaks near $67.47 in early 2024 and subsequently reaching highs above $180 by mid to late 2025. Despite occasional declines, the long-term trend indicates strong investor confidence and market valuation appreciation.

Operating Profit Per Share (OPPS)

Operating profit per share exhibited consistent growth throughout the periods analyzed. Beginning at $0.14, the OPPS gradually increased with minor variations and accelerated substantially after early 2023. It reached approximately $3.95 by mid-2025, reflecting improved profitability and operational efficiency over time.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio showed notable volatility. Initially, the ratio was relatively high, peaking above 90 in late 2021 and even exceeding 200 at one point in early 2023, indicating a possible overvaluation relative to operating profits during this period. Afterwards, the ratio decreased significantly to below 40 towards mid-2025 before experiencing a slight rise again. This fluctuation suggests changing market sentiment and adjustment in valuation relative to operating profitability.

Overall Financial Insights

There is a clear pattern of increasing operating profitability, which aligns with the expansion in share price, though the share price movements were more volatile. The disparity at times between share price growth and operating profit indicates varied investor expectations or external market influences. The reduction in P/OP ratio in the latter quarters may suggest a more balanced valuation emerging as profitability growth catches up with share price increases.

The financial data exhibits notable trends in share price, sales per share, and the price-to-sales (P/S) ratio over multiple quarterly periods.

Share Price

The share price shows a general upward trajectory from the initial value of $8.78, reaching a peak of $181.60 in the most recent quarter. There are fluctuations within this overall increase, including declines between October 2021 and July 2022, and a drop from October 2024 to January 2025. Despite these intermittent decreases, the long-term trend indicates significant appreciation in share value.

Sales per Share

Sales per share demonstrate a steady increase across the reported quarters, rising from $0.48 initially to $6.80 by the end of the period. Growth is consistent without substantial regression, reflecting improving revenue generation on a per-share basis over time.

Price-to-Sales (P/S) Ratio

The P/S ratio exhibits considerable volatility. Early periods show an increase from 18.34 to above 30, peaking around 37.18 in April 2023. Thereafter, the P/S ratio declines to lower levels but fluctuates again, remaining elevated relative to the initial quarters. This variability suggests changing market perceptions of the company's valuation relative to sales, potentially influenced by shifts in growth expectations or market sentiment.

In summary, the data reveals robust growth in sales per share, accompanied by a substantial rise in share price, indicating strong investor confidence and improving business performance. However, the fluctuating P/S ratio points to periods of varying valuation multiples, which may reflect evolving market conditions or assessments of future growth prospects.

Share Price Trends

The share price demonstrated a general upward trajectory over the analyzed period. Starting at $8.78, it rose steadily with occasional fluctuations, reaching a peak of $181.60 by the latest reported date. Notable increments occurred especially after early 2023, where the price accelerated from $23.29 to beyond $100 within approximately 18 months. This indicates strong market confidence or positive developments impacting valuation.

Book Value Per Share (BVPS) Trends

Book value per share exhibited a consistent and gradual increase from $0.53 to $4.12 over the time frame. The progression was relatively steady, suggesting ongoing accumulation of equity or retained earnings growth. Periods of slight stagnation or minor decreases were observed, such as around mid to late 2022, where BVPS dropped from 1.06 to 0.87 before resuming upward movement. Overall, the increase reflects strengthening of the company's net asset base on a per-share basis.

Price-to-Book Value Ratio (P/BV) Trends

The P/BV ratio fluctuated considerably, reflecting changes in market valuation relative to book value. It started high at 16.49, climbed to peaks exceeding 50 at certain points in 2024, with the highest recorded value of 57.48. These spikes coincided with sharp increases in share price outpacing book value growth. Conversely, dips in the ratio corresponded to periods when share price decreased or book value caught up slightly. The high magnitude of the P/BV ratio in later periods indicates elevated market expectations relative to the company's net book assets.

Summary of Financial Position and Market Perception

The data highlights that while the company's intrinsic value, as measured by book value per share, has grown steadily, the market’s valuation has grown at a substantially faster pace especially in recent years. This has led to increased valuation multiples, implying strong investor optimism or anticipated growth prospects. However, such elevated P/BV ratios may also suggest heightened valuation risk if growth expectations are not met.