Company Analysis
NVIDIA Corp
NVDA • Semiconductors
AI Summary
NVIDIA Corp. is a leading player in accelerated computing, with strong growth driven by its data center and AI solutions, reflected in an impressive EPS growth of over 110%. Despite its current overvaluation at a ratio of 924.79 to fair value, its robust earnings power, high return on equity (111.7%), and technological leadership suggest significant growth potential for investors willing to accept premium valuation levels. However, due to its overvaluation, it may be more suitable for investors with a high risk tolerance seeking exposure to the AI and data center megatrends.
GoodStock Company Score
Score Breakdown
GoodStock Estimated Valuation
Valuation Range vs. Current Price
GoodStock Price Momentum
Momentum Indicators
NVIDIA Corp
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GoodStockClassification
| Theme | Quality | Momentum | Value |
|---|---|---|---|
| Best in Class | + | + | + |
| Quality at a Price | + | + | - |
| Contrarian | + | - | + |
| Yesterday's News | + | - | - |
| Restructuring | - | + | + |
| Momentum Trap | - | + | - |
| Value Trap | - | - | + |
| Worst in Class | - | - | - |
These investments represent top-performing assets in their respective sectors, demonstrating consistent growth, strong management, and a competitive edge. Investors choose them for stability and reliability, expecting continued outperformance compared to peers.
Earnings History
Last beatActual EPS compared with analyst estimates.
| Fiscal Quarter | Actual | Estimate | Surprise |
|---|---|---|---|
|
Q1 2027
Jun 30, 2026
|
$1.87 | $1.79 | +4.3% |
|
Q1 2027
May 20, 2026
|
$1.87 | $1.79 | N/A |
|
Q4 2026
Mar 31, 2026
|
$1.62 | $1.56 | +3.6% |
|
Q3 2026
Dec 31, 2025
|
$1.30 | $1.27 | +2.0% |
|
Q2 2026
Sep 30, 2025
|
$1.05 | $1.03 | +2.1% |
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Financial Ratios
AI Financial Ratios Summary
The company's earnings per share (EPS) of 6.53, coupled with a high P/E ratio of 31.3, suggests strong investor expectations for future growth, though it also indicates the stock may be somewhat overvalued relative to current earnings. Its exceptional return on equity (ROE) of 111.66% reflects highly efficient utilization of shareholders' equity, which, along with an extremely low debt-to-equity ratio of 0.05 and a robust interest coverage of 75.66, demonstrates a conservative leverage position and strong financial stability. These ratios collectively indicate a financially sound company that has the potential to sustain growth; however, the high valuation multiple could limit upside unless future earnings accelerate, impacting the stock's ability to fully reach its growth potential.
- $6.53
- 31.3
- 111.66%
- 0.05%
- 75.66
- $5.14 M
- 3.14%
- $5000 B
Operational Ratios
AI Operational Ratios Summary
The company's robust operating margin of 64.02% and gross margin of 74.15% reflect strong cost management and high profitability at the core operational level, indicating efficient operations. Coupled with an exceptional return on assets of 83.11%, these ratios suggest the company is effectively utilizing its assets to generate earnings, which bodes well for sustained profitability and potential growth. Additionally, the impressive 83.13% CAGR in free cash flow underscores solid cash generation capacity, supporting future investments and dividend sustainability.
- 64.02%
- 74.15%
- 62.97%
- 83.11%
- $0.04
- 0.02%
- 83.13%
- 39.89%
Valuation Ratios
AI Valuation Ratios Summary
The company's Price to SAP 500 ratio of 18.93 suggests it is valued somewhat higher than the broad market average, indicating moderate market expectations. However, the notably low PEG ratio of 0.28 points to strong earnings growth prospects relative to its valuation, potentially signaling that the stock is undervalued given its growth rate. Combined with a solid Book Value Per Share of 6.47 and substantial Cash Per Share of 2.57, these metrics imply the company may be undervalued and present a promising investment opportunity for growth and value investors.
- $237
- $141
- $6.77
- 18.93%
- 0.28
- $42
- $6.47
- 2.57