NVIDIA Corp. (NASDAQ:NVDA)

The financial ratios for the analyzed periods exhibit notable fluctuations and discernible trends. Each ratio reflects market valuation metrics relative to earnings, operating profit, sales, and book value, providing insight into changes in investor sentiment and company performance over time.

Price to Earnings (P/E) Ratio

The P/E ratio values begin at approximately 67.59 in April 2020, exhibiting an overall upward trend with intermittent fluctuations. A peak is observed around January 2023 at 131.7, followed by a significant surge to 200.72 in April 2023, indicating elevated market expectations or reduced earnings during this interval. Subsequently, the ratio declines steadily to 42.84 by April 2025, suggesting a correction in market valuation or an improvement in earnings. This pattern suggests periods of high market optimism interspersed with more tempered valuations later in the timeline.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio mirrors the P/E trend closely, starting around 66.4 in April 2020 and escalating to a peak of 213.98 in April 2023, which is the highest point among the reported ratios. This substantial jump indicates an increased market premium relative to operating profits during this period. Following this peak, the ratio decreases sharply to 38.17 by April 2025, showing a pronounced revaluation consistent with better operating profitability or more conservative investor outlook.

Price to Sales (P/S) Ratio

This ratio exhibits a smoother trajectory compared to P/E and P/OP. Starting at 17.31 in April 2020, it trends upward to a high of 37.18 in January 2023, maintaining a relatively elevated level thereafter. Though it decreases slightly to 22.15 by April 2025, it remains substantially above the initial value, indicating sustained higher sales valuations by the market despite corrections in earnings and profit multiples.

Price to Book Value (P/BV) Ratio

The P/BV ratio shows an increasing trend from 10.07 in April 2019 to a peak of 57.48 in April 2024. Unlike other ratios, it starts earlier in the sample period and experiences significant volatility with sharp rises from mid-2021 onwards. The ratio remains elevated through April 2025, ending at 39.23, signifying a strong market valuation relative to the company's book equity. This persistence suggests enduring investor confidence in the company’s asset base or anticipated future growth despite fluctuations in other valuation measures.

Overall, the data reveals a phase of strong market enthusiasm and high valuation multiples particularly around 2023 and early 2024, followed by a period of recalibration with descending ratios across earnings and operating profit metrics. The price to sales and price to book value ratios maintain relatively higher levels post-peak, implying that the market retains a positive view on the revenue generation capacity and asset value of the company even as profitability multiples adjust downward.

The financial data reveals significant changes and patterns in share price, earnings per share (EPS), and price-to-earnings (P/E) ratios over the observed quarterly periods.

Share Price

The share price exhibits a clear upward trajectory from 2019 through mid-2024, moving from a low of approximately $3.72 in mid-2019 to a peak exceeding $145 by late 2024. Notable increases occurred in the periods around mid-2021 through early 2023, with a particularly sharp rise from around $23.29 in early 2023 to a peak of roughly $145 in late 2024. Despite some short-term declines and fluctuations, the long-term trend indicates robust growth in share price.

Earnings Per Share (EPS)

EPS started reporting in early 2020 with gradual increases from $0.11, steadily climbing to a high of around $3.15 by mid-2024. There are periods of minor decline, for example between early 2022 and early 2023 when EPS fell from $0.39 to $0.18, but overall the trajectory is upward. The sharpest EPS growth aligns with the latter half of the timeline, particularly from late 2022 onward, reflecting strong earnings improvements.

Price-to-Earnings (P/E) Ratio

The P/E ratio fluctuates considerably across the periods, starting around 65 in early 2020 and reaching peaks of over 200 in early 2023. This elevated valuation indicates market optimism even as earnings were recovering from a dip in the 2022-early 2023 timeframe. Following this peak, the ratio declines and stabilizes in the 40s to 60s range by mid to late 2024, suggesting a return to more moderate valuation multiples as earnings growth accelerated alongside share price increases.

In summary, the data indicates a strong growth phase for the company, characterized by rising share prices and earnings per share over the long term. The variations in the P/E ratio suggest fluctuating market sentiment and valuation assessments, with periods of both exuberance and moderation. The uptick in EPS in the latter periods supports the view of underlying business strengthening, which coincides with the substantial share price appreciation observed.

Share Price Trend

The share price exhibited a general upward trajectory from April 2019 through April 2025, rising substantially from $4.01 to $134.81. There were periods of moderation and slight declines, notably around early 2022 where the price dropped from $31.96 in October 2021 to $15.09 in July 2022. However, after mid-2022, the share price accelerated significantly, reaching peaks above $140 in late 2024 before stabilizing slightly in early 2025. This reflects strong investor confidence and market valuation growth over the analyzed period.

Operating Profit Per Share Development

Operating profit per share, available from early 2020 onwards, indicates a steady increase in profitability. Starting at $0.12 in January 2020, the metric showed a gradual rise with minor fluctuations, reaching $0.4 by May 2022. A slight dip occurred mid-2022 to early 2023, followed by a robust rebound, culminating at $3.53 by April 2025. This substantial growth suggests improved operational efficiencies and expanding profit margins over the quarters.

Price to Operating Profit (P/OP) Ratio Analysis

The P/OP ratio showed marked volatility throughout the timeframe. Initially high in early 2020, reaching values over 80, it briefly declined to around 46-47 in mid-2022, coinciding with the share price reduction and marginal dips in operating profit per share. This was followed by a sharp escalation to over 213 by early 2023, indicating that share prices increased disproportionately relative to operating profit at that time. Subsequently, the ratio decreased steadily to around 38 by April 2025, implying a market adjustment aligning stock valuation more closely with profitability metrics.

Overall Interpretation

The data illustrates significant growth in both market valuation and operating profitability over five years, despite intermittent volatility. The pronounced rise in operating profit per share underpins the long-term increase in share price. Fluctuations in P/OP ratio suggest periods of market reevaluation and speculative behavior but ultimately settled at a more moderate level, reflecting stabilizing investor valuation relative to earnings performance. The company appears to have strengthened its financial performance, which is recognized progressively in its market capitalization.

The financial data reveals several notable trends over the presented periods. The share price, expressed in US dollars, shows a marked overall upward trajectory despite some volatility. Initially, the share price rose gradually from a low base of approximately 4 US dollars in early 2019 to a peak near 49.94 US dollars by late 2023. This increase was characterized by steady growth with intermittent corrections, such as the decline observed between late 2021 and mid-2022. Subsequently, the share price experienced a sharp appreciation reaching above 145 US dollars by late 2024 before some correction in early 2025, ending around 134.81 US dollars.

Sales per share demonstrate a consistent and steady increase starting from the first recorded figure in early 2020 at 0.45 US dollars. This metric rose progressively across subsequent quarters, reaching 6.09 US dollars by early 2025. The growth in sales per share indicates effective revenue expansion on a per-share basis, reflecting positively on the company's ability to generate increasing revenues relative to its outstanding shares.

The price-to-sales (P/S) ratio shows a more variable pattern, initially increasing substantially from around 17.31 to peaks above 35 in mid to late 2023. This upward movement suggests rising market valuations relative to sales during that period, possibly indicating heightened investor confidence or expectations of future growth. Following these peaks, the P/S ratio declined to levels slightly above 22 by early 2025, reflecting a moderation in valuation multiples despite ongoing increases in sales per share.

Share Price Trends

The share price rose approximately 33-fold from 2019 to 2024, demonstrating substantial capital appreciation. The trajectory includes phases of consolidation and pullbacks but is characterized by strong upward momentum, particularly after mid-2022.

Sales per Share Trends

Sales per share exhibited continuous growth with no evident downturns, suggesting robust and sustained revenue expansion on a per-share basis. The incremental increases from 0.45 to over 6 US dollars indicate consistent business scaling or sales efficiency improvements.

Price-to-Sales Ratio Dynamics

The P/S ratio's volatility highlights shifting market perceptions. The spikes above 35 suggest periods of elevated optimism or anticipated growth despite the underlying sales figures. The subsequent decline implies valuation normalization or adjustments in market sentiment while sales still increased strongly.

In summary, the data suggests an overall strong fundamental performance, evidenced by rising sales per share and a substantially higher share price over time. However, valuation metrics like the P/S ratio reflect fluctuating investor confidence and market conditions, with periods of premium valuations followed by more tempered assessments. This dynamic implies that while growth is sustained, market pricing integrates broader economic or sector-specific factors influencing the company's valuation.

The analyzed financial data reveals several notable trends regarding the share price, book value per share (BVPS), and price-to-book value (P/BV) ratio over multiple quarters.

Share Price

The share price has exhibited a general upward trend from April 2019 to April 2025. Starting at a modest level of $4.01 in April 2019, the price experienced moderate growth in the initial quarters, reaching around $13.72 by January 2021. From mid-2021 onwards, there was a marked acceleration in share price appreciation, peaking significantly at $145.89 in October 2024 before a slight decline to $134.81 by April 2025. This substantial increase reflects strong market confidence and potentially favorable company performance or growth prospects during this period.

Book Value Per Share (BVPS)

BVPS demonstrated consistent growth throughout the timeline. Starting at $0.40 in April 2019, it gradually rose in most quarters with minor fluctuations. By April 2025, BVPS had reached $3.44, indicating a more than eightfold growth. This steady increase suggests improvement in the company’s net asset value per share, which is indicative of growth in shareholder equity and potentially successful reinvestment strategies or retained earnings accumulation.

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

The P/BV ratio displayed considerable volatility, though generally trending upward. Initially around 10.07 in April 2019, the ratio varied frequently, spiking to peaks such as 33.57 in October 2021 and reaching a high of 57.48 in April 2024. Despite the fluctuations, the general increase in P/BV implies that the market price was growing at a faster rate than the book value, reflecting high investor expectations and possibly premium valuation due to anticipated future growth or profitability. The ratio’s peak periods coincide with rapid rises in share price, underlining market optimism.

In summary, the data illustrates a strong and sustained increase in share price alongside a steady rise in book value per share. The rising P/BV ratio highlights increasing market expectations and confidence. Together, these factors suggest an improving financial foundation and robust market perception during the analyzed periods.