NVIDIA Stock Analysis, Valuation (NASDAQ:NVDA)

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$271.98 $0.96 (0.35%) NVDA stock closing price Sep 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 Q2 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 sales grew by 65.6% year on year in 2018-04.
  • Revenue growth has been tremendous with a compounded annual growth of 20.6 over the last 5 years.
  • NVIDIA had a healthy average operating margin of 35.97 over the last 4 quarters.
  • Net margins came in at average 34.4% for NVIDIA over the last twelve months.
  • NVIDIA has an attractive ROIC (Return on Invested Capital) of 138.6
  • NVIDIA has a good Return On Equity (ROE) of 56.2.
  • NVIDIA has a healthy FCF (Free Cash Flow) margin of 41.4.

Should you sell NVDA stock?

  • NVDA stock is trading at a PE ratio of 45.2, which is worse than the sector average multiple of 25.4.
  • NVDA stock is trading at a PS multiple of 14.2, which is a negative when compared to the Computer and Technology sector average multiple of 2.9.

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.