NVIDIA Corp (NVDA) stock analysis

P/E below its 5-year median

Nvidia's P/E of 22.0 is below its own 5-year median of 56.1.

P/E below the industry

Nvidia's P/E of 22.0 is below the Electronic Components and Accessories median of 34.8.

EV/EBITDA below its 5-year median

Nvidia's EV/EBITDA of 20.9 is below its 5-year median of 48.2.

P/B above the industry

Nvidia's price-to-book of 18.28 is above the Electronic Components and Accessories median of 3.49.

Trading below fair value

The share price of $173.73 is below our fair value estimate of $306.55.

Margin of safety over 20%

The price is 43.3% below fair value, more than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 100% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 207% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 123% over the last twelve months, against a 5-year average of 94.3% a year.

Growing faster than the industry

Revenue grew 83.4% over the last twelve months; the Electronic Components and Accessories median is 17.3%.

Guidance lowered

Nvidia lowered its full year fiscal 2027 tax rates outlook on May 20, 2026.

Gross margin improving

Gross margin was 74.7% over the last twelve months, against 69.8% a year earlier.

Return on equity over 15%

Return on equity was 117% over the last twelve months and averaged 75.0% over five years.

Return on capital over 10%

Return on invested capital was 114%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Nvidia's return on equity of 117% is above the Electronic Components and Accessories median of 4.8%.

Earnings grew over 5 years

Net income grew 94.3% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 63.7% over the last twelve months, against a 5-year average of 42.5%.

Net margin above the industry

Nvidia's net margin of 63.7% is above the Electronic Components and Accessories median of 2.9%.

Low debt

Debt is 14.6% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 41.2% five years ago to 14.6%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 403% of total debt.

Interest well covered

Operating income covers interest expense 426.7 times.

Short-term assets cover short-term debts

Current assets are 4.59 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 32.04; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Nvidia paid dividends worth 0.3% of the share price over the last twelve months.

Yield below Treasuries

The 0.3% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Nvidia yields 0.3%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 3.5% of net income.

Covered by free cash flow

Dividends take 5.3% of free cash flow.