NVIDIA Corp. (NASDAQ:NVDA)

The valuation ratios exhibit considerable fluctuation over the observed period, spanning from May 2021 to January 2026. Generally, the ratios demonstrate a pattern of initial increases followed by periods of decline and subsequent recovery, though not always to previous highs. A notable surge in valuation multiples occurred between late 2022 and early 2023, followed by a moderation throughout the remainder of the period.

Price to Earnings (P/E)

The P/E ratio initially increased from 73.45 in May 2021 to a peak of 97.36 in October 2021, before decreasing to 48.55 by July 2022. A significant increase then occurred, reaching a high of 200.72 in April 2023. Subsequently, the ratio declined to 39.58 by January 2026, representing a substantial correction from its peak. The most recent values suggest a stabilization in the ratio, though at a lower level than observed in 2023.

Price to Operating Profit (P/OP)

The P/OP ratio mirrored the trend of the P/E ratio, increasing from 70.98 in May 2021 to 93.15 in October 2021, followed by a decrease to 46.92 in July 2022. A similar peak was observed in April 2023 at 213.98, before declining to 36.45 by January 2026. The pattern of increase, peak, and decline closely follows that of the P/E ratio, indicating a strong correlation between earnings and operating profit multiples.

Price to Sales (P/S)

The P/S ratio exhibited a more gradual increase from 20.32 in May 2021 to 32.92 in October 2021. It then decreased to 12.64 in July 2022, followed by a rise to 37.18 in April 2023. The ratio subsequently decreased to 22.01 by January 2026. While fluctuations are present, the P/S ratio generally remained within a broader range compared to the P/E and P/OP ratios.

Price to Book Value (P/BV)

The P/BV ratio increased from 20.84 in May 2021 to 33.57 in October 2021, then decreased to 15.75 in July 2022. A subsequent increase peaked at 57.48 in April 2024, before declining to 30.21 by January 2026. The P/BV ratio demonstrates a higher degree of volatility compared to the P/S ratio, and its peak in 2024 was notably higher than previous peaks.

Overall, the observed trends suggest periods of heightened investor optimism followed by corrections. The significant increases in valuation ratios during late 2022 and early 2023 were followed by a period of moderation, indicating a potential shift in market sentiment. The consistent correlation between the P/E and P/OP ratios suggests that changes in earnings and operating profit are key drivers of valuation. The P/BV ratio’s increased volatility may indicate changing perceptions of the company’s asset value.

The price-to-earnings (P/E) ratio exhibited considerable fluctuation over the observed period, spanning from May 2021 to January 2026. Initial values indicated a relatively high valuation, followed by periods of both expansion and contraction. A general trend of increasing volatility in the P/E ratio is apparent, particularly in the later half of the period.

Initial Period (May 2021 – January 2022)

The P/E ratio began at 73.45 and demonstrated moderate variability, peaking at 97.36 in October 2021 before decreasing to 68.08 by January 2022. This suggests a period of initial investor optimism followed by a slight correction, potentially influenced by market conditions or company-specific news.

Mid-Period Volatility (May 2022 – October 2022)

From May 2022 through October 2022, the P/E ratio continued to decline, reaching a low of 48.55 in July 2022, then increasing to 63.65. This period reflects a more pronounced downward trend, potentially linked to evolving investor sentiment or changes in earnings expectations.

Significant Expansion (November 2022 – April 2023)

A substantial increase in the P/E ratio is observed from January 2023 to April 2023, rising from 131.70 to a peak of 200.72. This dramatic expansion suggests a significant shift in investor confidence, potentially driven by positive earnings reports or future growth prospects. The earnings per share (EPS) also increased during this period, but not at the same rate as the share price.

Subsequent Moderation (May 2023 – October 2024)

Following the peak in April 2023, the P/E ratio experienced a period of moderation, fluctuating between approximately 65 and 112. This suggests a stabilization of investor expectations after the earlier surge. The P/E ratio decreased to 56.64 by October 2024.

Recent Trends (November 2024 – January 2026)

The P/E ratio demonstrated further volatility, decreasing to 43.95 in January 2025, then increasing to 39.58 by January 2026. This recent fluctuation indicates ongoing uncertainty or sensitivity to market factors. While the share price increased over the period, the EPS increased at a faster rate, resulting in a lower P/E ratio.

Overall, the P/E ratio demonstrates a dynamic pattern, influenced by fluctuations in both share price and earnings per share. The observed increases in the P/E ratio suggest periods of heightened investor optimism, while decreases may indicate caution or reassessment of the company’s valuation.

The Price to Operating Profit (P/OP) ratio exhibits considerable fluctuation over the observed period, spanning from May 2021 to January 2026. Initially, the ratio demonstrates an increasing trend, peaking in October 2021 before experiencing a decline through the first half of 2022. Subsequently, the ratio shows volatility, with periods of increase and decrease, ultimately reaching a low point in January 2023. A significant surge is then observed, culminating in a high in April 2023, followed by a general decline and stabilization in the latter half of 2024 and into 2025. The most recent observation in January 2026 indicates a continued downward trend.

Initial Increase and Peak (May 2021 – October 2021)

The P/OP ratio increased from 70.98 to 93.15 over this period. This suggests that the market was willing to pay an increasingly higher price for each dollar of operating profit generated by the company. The peak in October 2021 may indicate strong investor confidence or expectations of future growth.

Decline and Stabilization (November 2021 – July 2022)

From November 2021 to July 2022, the P/OP ratio decreased from 93.15 to 46.92. This decline could be attributed to various factors, including a decrease in operating profit per share, broader market corrections, or a shift in investor sentiment. The ratio stabilizes around the 47 level during this period.

Volatility and Subsequent Surge (August 2022 – April 2023)

The period between August 2022 and April 2023 is characterized by volatility, with the P/OP ratio fluctuating between 63.84 and 213.98. The dramatic increase to 213.98 in April 2023 represents a substantial premium placed on operating profit, potentially driven by positive company-specific news or a reassessment of growth prospects. This surge is particularly noteworthy given the preceding fluctuations.

Recent Trends (May 2023 – January 2026)

Following the peak in April 2023, the P/OP ratio generally decreased, settling at 36.45 by January 2026. This suggests a cooling of investor enthusiasm or a realization of more moderate growth expectations. The ratio’s movement from 107.15 in May 2023 to 36.45 in January 2026 indicates a significant correction in the market’s valuation of the company’s operating profit.

Overall, the P/OP ratio demonstrates a cyclical pattern with periods of growth, decline, and volatility. The recent downward trend warrants further investigation to determine the underlying causes and potential implications for future performance.

The price-to-sales (P/S) ratio exhibited considerable fluctuation over the observed period, spanning from May 2021 to January 2026. Initially, the ratio demonstrated an increasing trend, peaking in October 2021 before experiencing a decline through the first half of 2022. Subsequently, the ratio recovered, reaching a local maximum in April 2023, followed by a period of relative stability and then a renewed increase into early 2025, before stabilizing again.

Initial Increase (May 2021 – October 2021)

The P/S ratio increased from 20.32 to 32.92, indicating growing investor confidence relative to sales during this period. This rise suggests that the market was willing to pay a higher premium for each dollar of sales.

Decline and Recovery (November 2021 – April 2023)

From November 2021 to May 2022, the P/S ratio decreased, reaching a low of 12.64. This decline could be attributed to various factors, including broader market corrections or company-specific concerns. The ratio then began a recovery, climbing to 37.18 by April 2023, potentially reflecting improved market sentiment or positive company performance.

Recent Trends (May 2023 – January 2026)

Following the peak in April 2023, the P/S ratio experienced a moderate decrease, stabilizing around the 22 to 27 range between October 2023 and January 2026. This suggests a period of consolidation, where investor expectations regarding future sales growth remained relatively consistent. The ratio showed some volatility within this range, but did not exhibit a strong directional trend.

Concurrent with the P/S ratio movements, sales per share generally increased over the period, rising from 0.77 to 8.89. The fluctuations in the P/S ratio, therefore, are not solely attributable to changes in sales per share, but also reflect shifts in market valuation. The period from July 2024 to January 2026 shows a relatively stable P/S ratio despite continued growth in sales per share, potentially indicating a more mature valuation.

Overall Volatility

The P/S ratio demonstrated significant volatility throughout the observed timeframe. This suggests that market perception of the company’s value relative to its sales was subject to change, potentially influenced by macroeconomic factors, industry trends, or company-specific developments.

The price-to-book value (P/BV) ratio exhibits considerable fluctuation over the observed period. Initially, the ratio demonstrates an increasing trend from May 2021 to October 2021, followed by a period of volatility and then a general increase through early 2023. Subsequently, the ratio experiences a decline, followed by another increase into early 2024, and then stabilizes with some fluctuation through the end of the observation period.

Initial Increase (May 2021 - October 2021)

The P/BV ratio increased from 20.84 to 33.57. This suggests a growing premium investors were willing to pay for each dollar of net asset value during this timeframe. This increase occurred alongside increases in both share price and book value per share (BVPS).

Volatility and Subsequent Rise (October 2021 - April 2023)

Following the peak in October 2021, the P/BV ratio experienced a decrease to 17.76 by October 2022. However, it then rebounded, reaching 39.24 by April 2023. This period reflects changing investor sentiment and potentially shifts in the company’s perceived growth prospects. The share price demonstrated more volatility than BVPS during this period.

Decline and Stabilization (April 2023 - October 2024)

From April 2023 to October 2024, the P/BV ratio decreased from 39.24 to 54.22, before settling around the 54 range. This suggests a potential correction in valuation, or a shift in investor expectations relative to the company’s book value. Both share price and BVPS increased during this period, but the share price increase was more pronounced.

Recent Trend (October 2024 - July 2025)

The P/BV ratio decreased from 54.22 to 38.12. This decrease is primarily driven by a more substantial increase in BVPS compared to the share price. This suggests that the market may be re-evaluating the company’s valuation in light of its growing net asset base.

Final Period (July 2025 - January 2026)

The P/BV ratio continued to decline, reaching 30.21 in January 2026. This final decrease indicates a continued shift in investor perception, with a lower premium being placed on the company’s book value. The BVPS continued to increase, while the share price remained relatively stable.

Overall, the P/BV ratio demonstrates a dynamic relationship with both share price and BVPS. The observed fluctuations suggest that investor sentiment and expectations regarding future growth play a significant role in the company’s valuation.