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?
- The Year Over Year (YoY) revenue growth for NVIDIA was 56.2% in 2018 Q2.
- The TTM operating margin was good at 31.3% for NVIDIA.
- Net margins came in at average 27.4% for NVIDIA over the last twelve months.
- NVIDIA's return on invested capital of 111.1% is good.
- The LTM ROE of 41.3% for NVIDIA is attractive.
- 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.
- The NVDA stock currently trades at a PE of 50.8, which is expensive, compared to the industry average of 26.
- The company is trading at a price to sales multiple of 12.9, which is overvalued in comparison to the Semiconductor-General industry average multiple of 2.7.