NVIDIA Stock Analysis, Valuation (NASDAQ:NVDA)
NVIDIA Stock Analysis
Investors can watch the Amigobulls NVIDIA stock analysis video here. This is our analyst opinion covering the buy and sell arguments for NVDA stock.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
NVIDIA Corporation Stock Rating 4/5
Amigobulls NVDA stock analysis uses latest quarter 2018 Q4 financial data like NVIDIA revenue growth, profit margins and cash flows. NVIDIA valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. NVIDIA stock rating is our opinion about the business fundamentals of the company.
Should you buy NVDA stock?
- NVIDIA's revenue growth came in at 34% in 2018 Q4.
- Long term revenue growth has been strong with a 5 year compounded annual growth of 17.8%.
- NVIDIA had a healthy average operating margin of 33.1% over the last 4 quarters.
- LTM Net margins were good at 31.4% for NVIDIA.
- NVIDIA has an attractive ROIC (Return on Invested Capital) of 121.7%
- The LTM ROE of 48.1% for NVIDIA is attractive.
- The company has a healthy free cash flow margin of 32.4%.
Should you sell NVDA stock?
- The NVDA stock currently trades at a PE of 48.3, which is expensive, compared to the industry average of 25.1.
- The company is trading at a price to sales multiple of 14, which is higher in comparison to the Semiconductor-General industry average of 2.8, making NVDA stock expensive.
NVIDIA Related Company Stock Videos
Amigobulls NVIDIA stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of NVDA stock. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.
NVIDIA revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.