NVIDIA Stock Analysis, Valuation (NASDAQ:NVDA)

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$252.03 $0.33 (0.13%) NVDA stock closing price Jul 19, 2018 (Closing)

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 4.1/5

Amigobulls NVDA stock analysis uses latest quarter 2019 Q1 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?

  • The Year Over Year (YoY) revenue growth for NVIDIA was 65.6% in 2018-04.
  • Long term revenue growth has been strong with a 5 year compounded annual growth of 20.6.
  • The TTM operating margin was good at 35.97 for NVIDIA.
  • Net margins stood at a healthy 34.4% (average) for NVIDIA in the Trailing Twelve Months.
  • NVIDIA's return on invested capital of 138.6 is good.
  • The LTM ROE of 56.2 for NVIDIA is attractive.
  • The company has a healthy free cash flow margin of 41.4.

Should you sell NVDA stock?

  • The NVDA stock currently trades at a PE of 44.2, which is expensive, compared to the sector average of 26.4.
  • The company is trading at a price to sales multiple of 13.9, which is higher in comparison to the Computer and Technology sector average of 3, making NVDA stock expensive.

Comments on this video and NVIDIA stock

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.