Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 25.66%, higher than industry average of 7.74%.

Growth Trajectory

Profitability

In the growth phase company makes 61.03% profit on every dollar of sales, higher than industry average of 21.34%.

Profitability Trajectory

Risk Profile

Investors expect at least 10.07% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)
Return on Invested Capital (%)

Financial Health Overview

Enterprise Value
4.60T USD
Equity Value
4.65T USD
FCF Yield
66.63%
Average ROIC
110.94%
Cost of Capital
9.61%
P/E Ratio
46.90x
Financial MetricMost Recent 12 months (USD)Previous Year (USD)
Revenues165.22B USD60.92B USD
Operating Income or EBIT100.90B USD34.08B USD
Interest Expense247M USD257M USD
Book Value Of Equity100.13B USD42.98B USD
Book Value Of Debt10.60B USD11.06B USD
Cash and Marketable Securities53.99B USD25.98B USD
Number of Shares Outstanding24.39B--
Minority interests0 USD0 USD
Current Stock Price170.76 USD--
Effective Tax Rate12.00%--
Marginal Tax Rate25.00%--

Performance vs Industry

Revenue Growth
+163.46%
171.19%Company
vs
7.73%Industry
Above Industry
Operating Margin
+39.73%
61.06%Company
vs
21.34%Industry
Above Industry
NVIDIA Corporation demonstrates superior performance in both growth and profitability compared to industry peers, indicating strong competitive advantages and operational excellence.

Terminal Value Analysis

Growth Rate
4.59%
Cost of Capital
8.83%
Return on Capital
17.66%
Reinvestment Rate
26.04%
Terminal value represents 72% of total enterprise value, based on 4.59% perpetual growth and 8.83% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 3.30T USD Add
Present Value (Cash Flow Over Next 10 Years) 1.30T USD Add
Value of Operating Assets 4.60T USD Sub-total
Debt 10.59B USD Subtract
Minority Interests — Subtract
Cash 53.99B USD Add
Value of Equity 4.65T USD Sub-total
Number of Shares 24.39B shares Divisor
Estimated Value per Share (Fair Value) 190.79 USD Total
Current Market Price 170.76 USD Reference

Financial Projections

Total FCF Present Value
1.30T USD
Avg Revenue Growth
17.03%
Avg Operating Margin
61.01%
Avg ROIC
110.94%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue218.26B USD274.28B USD344.66B USD433.11B USD544.25B USD660.98B USD774.92B USD875.85B USD953.03B USD996.87B USD1.04T USD
Growth Rate 32.11% 25.66% 25.66% 25.66% 25.66% 21.44% 17.23% 13.02% 8.81% 4.60% 4.59%
PROFITABILITY
Operating Income133.29B USD167.42B USD210.33B USD264.25B USD331.99B USD403.20B USD472.70B USD534.27B USD581.35B USD608.09B USD636.06B USD
Operating Margin 61.06% 61.04% 61.02% 61.01% 61.00% 61.00% 61.00% 61.00% 61.00% 61.00% 61.00%
EBIT (1-tax)117.29B USD147.33B USD185.09B USD232.54B USD292.15B USD344.33B USD391.39B USD428.48B USD451.12B USD456.07B USD477.04B USD
CASH FLOW
Reinvestment35.08B USD44.08B USD55.39B USD69.61B USD73.11B USD103.35B USD91.56B USD70.01B USD39.77B USD41.59B USD124.25B USD
Free Cash Flow82.21B USD103.24B USD129.70B USD162.93B USD219.03B USD240.97B USD299.83B USD358.46B USD411.35B USD414.47B USD352.79B USD
Terminal Value--------------------8.34T USD
Present Value74.69B USD85.22B USD97.26B USD111.00B USD135.57B USD135.81B USD154.22B USD168.64B USD177.42B USD164.26B USD—
EFFICIENCY
ROIC 206.73% 160.45% 136.19% 121.55% 111.97% 103.08% 89.48% 81.00% 75.31% 71.40% 17.66%
Cost of Capital 10.07% 10.07% 10.07% 10.07% 10.07% 9.82% 9.57% 9.32% 9.07% 8.83% 8.83%
Sales/Capital 1.59x 1.59x 1.59x 1.59x 1.59x 1.10x 1.10x 1.10x 1.10x 1.10x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow ($B)
Reinvestment ($B)