NVIDIA Stock Analysis, Valuation (NASDAQ:NVDA)
NVIDIA Stock Analysis
View NVIDIA stock analysis video. This is our analyst opinion covering the buy and sell arguments for NVDA stock.
NVIDIA Corporation Stock Rating 3.7/5
Our NVIDIA stock opinion is based on fundamentals of the company. This NVIDIA stock analysis is based on latest 2018 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.
Should you buy NVDA stock?
- NVIDIA sales grew by 56.2% year on year in 2018 Q2.
- The TTM operating margin was good at 31.3% for NVIDIA.
- LTM Net margins were good at 27.4% for NVIDIA.
- NVIDIA's return on invested capital of 111.1% is good.
- NVIDIA has a good Return On Equity (ROE) of 41.3%.
- The company has a good Free Cash Flow (FCF) margin of 29.2%.
Should you sell NVDA stock?
- With a debt/equity ratio of 0.35, NVIDIA is highly leveraged in comparison to Computer and Technology peers.
- NVDA stock is trading at a PE ratio of 52.2, which is worse than the industry average multiple of 26.2.
- The company is trading at a price to sales multiple of 13.3, which is higher in comparison to the Semiconductor-General industry average of 2.7, making NVDA stock expensive.