NVIDIA Corp. (NASDAQ:NVDA)

The company’s valuation ratios over the analyzed period exhibit notable fluctuations, reflecting shifts in market sentiment, earnings performance, and asset valuation.

Price to Earnings (P/E) Ratio

The P/E ratio shows a general volatility with values spanning from a low in the early 2020s around 42.84 up to a significant peak of 200.72. Initially, there was a rising trend from 65.08 in April 2020 to a peak around late 2022 and early 2023, followed by a sharp spike. After reaching this peak, the ratio declined steadily but remained relatively elevated compared to the early period, indicating fluctuating investor expectations about earnings growth or risk assessment over time.

Price to Operating Profit (P/OP) Ratio

This ratio follows a pattern closely mirroring the P/E trend, suggesting a strong correlation between earnings and operating profit valuations. The ratio increased from 62.35 in early 2020, peaking at 213.98, which surpasses the P/E peak, hinting at periods where operating profit may have been valued more aggressively than earnings or possibly influenced by non-operating factors affecting net income. The subsequent decline to values near the 40s towards the latter part of the period suggests normalization or a correction in market pricing relative to operating profit.

Price to Sales (P/S) Ratio

The P/S ratio displayed a generally upward trajectory with considerable peaks and troughs. Starting at 18.34, it rose to a high of 37.18 in early 2023, indicating increasing market valuation relative to sales revenue. The ratio decreased towards mid-2020s but remained elevated compared to the earliest values, suggesting sustained investor willingness to pay a premium over sales, which may be related to future growth expectations or strong revenue performance despite some valuation adjustments.

Price to Book Value (P/BV) Ratio

The P/BV ratio demonstrated a similar pattern of substantial growth, rising from 16.49 to a maximum of 57.48, indicating that investors increasingly valued the company’s net assets highly during the peak periods. This sustained elevation reflects strong market confidence or growth optimism in the company’s asset base. Despite some declines post-peak, the ratio remained significantly above the early period’s levels, suggesting a higher premium on the company’s book value across the examined quarters.

Overall, the financial multiples suggest that the market has generally increased the valuation multiples for earnings, operating profit, sales, and book value through the period, with notable peaks in late 2022 and early 2023. The substantial volatility and subsequent partial retracements indicate shifts in investor perception influenced by earnings performance, profitability, sales growth, or broader market conditions affecting risk and growth expectations. Despite corrections, the ratios remain elevated relative to the earliest period, signaling continued market confidence in the company’s growth and operational prospects.

The analysis of the quarterly financial data reveals distinct trends in the share price, earnings per share (EPS), and price-to-earnings (P/E) ratio over the examined periods.

Share Price

The share price demonstrated a general upward trajectory, beginning at $8.78 and rising markedly to $186.52 by the last recorded quarter. Notable increases are observed in several periods, for instance advancing from approximately $15.7 to nearly $32 between May 2021 and October 2021, and showing an accelerated growth from around $67.47 in January 2024 to over $181 towards the end of the timeline. Some intermediate periods experienced declines or plateaus, such as the drop from $31.96 in October 2021 to $15.09 by July 2022. Overall, the share price reflects substantial appreciation, indicative of strong market valuation growth over time.

Earnings Per Share (EPS)

EPS followed a positive progression with fluctuations. Starting at $0.13, EPS increased steadily to reach a peak of $4.08 in the most recent quarter. Intermediate dips were present, for example from $0.39 in January 2022 down to $0.18 in January 2023, followed by a robust recovery and growth thereafter. The later quarters reveal rapidly growing earnings, especially from early 2023 onwards, signifying enhanced profitability and operational performance over time.

Price-to-Earnings (P/E) Ratio

The P/E ratio exhibited considerable volatility. Initially high values (above 65) fluctuated between roughly 43 and 131 in the middle periods. A sharp spike to over 200 in April 2023 signaled elevated market optimism relative to earnings at that time, followed by a corrective decline to a range between approximately 43 and 66 in subsequent quarters. This variability suggests changes in investor expectations and perceived risk, possibly influenced by earnings volatility and market sentiment shifts throughout the timeline.

In summary, the company’s share price and EPS show overall strong growth, albeit with intermittent periods of decline or stagnation. The P/E ratio's fluctuations reflect varying investor confidence and valuation adjustments, but generally staying at elevated levels relative to initial values. This pattern indicates that while the company's fundamental earnings improved considerably, market valuation experienced periods of both heightened optimism and cautious recalibration.

Share Price Trend

The share price demonstrated an overall strong upward trajectory over the examined periods. Starting at $8.78, it experienced fluctuations with notable rises particularly from May 2023 onwards, reaching a peak of $186.52 by October 2025. Some intermediate declines occurred, such as the dip in the first quarter of 2022; however, the general momentum was significantly positive, showcasing substantial market growth and investor confidence.

Operating Profit Per Share Development

Operating profit per share exhibited a consistent increase throughout the timeline. Beginning at $0.14, this metric showed steady incremental growth with minor variability, culminating at $4.53 by the final period. The upward trend reflects improving operational efficiency and profitability on a per-share basis, indicating enhanced earnings generation capability over time.

Price-to-Operating Profit Ratio (P/OP) Analysis

The P/OP ratio fluctuated notably across the intervals, beginning at 62.35 and exhibiting periods of both increase and decrease. The ratio surged significantly by early 2023, peaking at 213.98, suggesting a temporary market premium relative to operating profit. Subsequently, the P/OP ratio moderated to levels generally between 38 and 60, reflecting a realignment of the share price valuation relative to operating profitability. The decline in this ratio during the latter periods implies improved valuation balance and potentially more sustainable price levels in relation to operating profits.

Overall Observations

The combination of rising share price and operating profit per share indicates strong corporate performance and favorable investor perception. The volatility in the P/OP ratio underscores periods of market revaluation and adjustment in pricing relative to fundamental earnings. The recent stabilization of the P/OP ratio within moderate ranges alongside continued profit growth suggests both market recognition of earnings improvement and a potentially more rational pricing environment in the latest quarters.

The share price exhibits a general upward trend over the observed periods, with significant growth particularly from early 2023 onward. Starting at $8.78, the price shows moderate increases through 2021, followed by fluctuations during 2022. From January 2023, there is a marked acceleration, reaching a peak of $186.52 by October 2025. Despite some interim variability, the substantial rise over this timeframe suggests strong market confidence or improving fundamentals influencing investor sentiment.

Sales per share demonstrate consistent growth throughout the periods. Beginning at $0.48, the figure increases steadily, albeit with some variation in growth rate, culminating at $7.70 by October 2025. This consistent improvement reflects expanding revenue generation relative to the number of shares, indicative of operational scaling or enhanced business performance.

The price-to-sales (P/S) ratio fluctuates considerably over the span. Initially starting at 18.34, it reaches a peak of 37.18 in April 2023, corresponding with a significant share price increase that outpaces sales per share growth. Subsequent values display volatility, with the P/S ratio varying between approximately 12.64 and 37.18, settling near 24.22 by the end of the last period. These fluctuations imply changing investor valuation relative to sales, which may result from shifts in market expectations, profitability outlook, or risk assessment.

Share Price Trend

Overall upward trajectory with notable acceleration from 2023; initial moderate growth and mid-period fluctuation.

Sales Per Share Trend

Consistent steady growth reflecting improved revenue performance per share across all periods.

Price-to-Sales Ratio Fluctuations

Marked volatility with peaks in early 2023, indicating shifting investor valuation in relation to sales growth.

Interpretation

The data suggests strong market performance and expanding revenue base, with investor valuation metrics experiencing variability possibly linked to changing market conditions or company prospects.

Share Price Trend

The share price exhibits a general upward trajectory over the observed periods. Starting from a base value below $10, it peaks notably toward the end of the timeline, reaching above $180. There are fluctuations within this upward trend, including intermediate declines and recoveries, but the overall direction indicates strong growth in market valuation.

Book Value per Share (BVPS) Development

BVPS demonstrates a steady and consistent increase throughout the periods. Beginning at approximately $0.53, it rises gradually, reflecting ongoing improvements in the company's net asset value on a per-share basis. By the end of the data range, BVPS grows significantly, surpassing $4.80, signaling sustained equity growth.

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

The P/BV ratio shows considerable variability, with an overall upward trend but exhibiting multiple peaks and troughs. Initially, the ratio is around 16.5, increasing to the 20s and 30s range in many intervals and spiking past 50 and even 57 at its highest. There are periods where the ratio declines sharply, suggesting phases where the share price adjusts relative to book value. However, the ratio remains elevated in most periods, indicating market pricing significantly above the company's book value.

Insights and Interpretation

The rising share price coupled with the increasing book value per share reflects both market optimism and fundamental growth in net assets. The fluctuating but generally high price-to-book ratios suggest that the market values the company at a premium, likely anticipating strong future earnings or reflecting high growth expectations. Spikes in P/BV may indicate moments of heightened investor enthusiasm or speculative activity, while dips could correspond to market corrections or reassessments of valuation.