NVIDIA CorporationNVDA
NMS • Technology
$237.47
P/E
29.87
PEG
0.24
FCF Yield
1.7%
Rev Growth YoY
+105.9% YoY
Gross Margin
75.0%
Health Score
9/10
D/E Ratio
0.15
Confidence
MEDIUM
Business Snapshot
NVIDIA designs the accelerated computing platforms — graphics processors, data-center AI chips, networking, and the CUDA software stack — that underpin modern artificial intelligence training and inference. It operates in semiconductors, where it holds a dominant position in AI accelerators, functioning less as a challenger and more as the incumbent standard that competitors must displace. At a $5.73T market capitalisation it is a mega-cap of extraordinary scale, generating $302.97B in trailing-twelve-month revenue and $192.88B in net income. Its defining characteristic is the combination of a hardware lead with a deeply embedded software ecosystem, which together create switching costs that pure chip rivals struggle to replicate. The business is also extraordinarily capital-light relative to its earnings power, converting a large share of profit into cash.
Financial Health
Gross margin stands at 75.0%, essentially flat versus 74.9% the prior year, while net margin is a remarkable 63.7% — meaning nearly two-thirds of every revenue dollar reaches the bottom line. The balance sheet is fortress-grade: debt/equity of just 0.15x and a current ratio of 4.59x indicate ample liquidity and minimal leverage...
Risk Assessment
- VALUATION — Price/Book of 25.04x and Price/Sales of 18.92x are elevated in absolute terms, meaning the market prices in sustained high growth.
- VALUATION DIVERGENCE — The Python DCF estimate of $95.62 sits far below the current price of $237.47, a 148% premium, while the P/E of 29.87x is below the sector average of 43.1x — the two valuation lenses point in opposite directions.
- INSIDER — Insiders recorded 0 buys versus 8 sells over the last 90 days, a net selling posture that warrants attention.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- 52-WEEK POSITION — At $237.47 the price sits near the 52-week high of $243.37 but well above the low of $164.27, leaving limited headroom to the top of the range.
- FCF / CASH BURN — FCF yield of 1.7% is low in absolute terms, reflecting the very large $5.73T market cap relative to $96.68B of free cash flow....
Gross margin stands at 75.0%, essentially flat versus 74.9% the prior year, while net margin is a remarkable 63.7% — meaning nearly two-thirds of every revenue dollar reaches the bottom line. The balance sheet is fortress-grade: debt/equity of just 0.15x and a current ratio of 4.59x indicate ample liquidity and minimal leverage. Free cash flow of $96.68B confirms the company generates enormous cash, though the FCF yield of 1.7% is modest only because the $5.73T market cap is so large relative to cash generation. Return on equity of 117.2% reflects exceptional capital efficiency. Overall, this is a financially powerful enterprise with substantial capacity to reinvest, return capital, or absorb shocks — the main caveat being that the valuation already prices in much of this strength.
- VALUATION — Price/Book of 25.04x and Price/Sales of 18.92x are elevated in absolute terms, meaning the market prices in sustained high growth. - VALUATION DIVERGENCE — The Python DCF estimate of $95.62 sits far below the current price of $237.47, a 148% premium, while the P/E of 29.87x is below the sector average of 43.1x — the two valuation lenses point in opposite directions. - INSIDER — Insiders recorded 0 buys versus 8 sells over the last 90 days, a net selling posture that warrants attention. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - 52-WEEK POSITION — At $237.47 the price sits near the 52-week high of $243.37 but well above the low of $164.27, leaving limited headroom to the top of the range. - FCF / CASH BURN — FCF yield of 1.7% is low in absolute terms, reflecting the very large $5.73T market cap relative to $96.68B of free cash flow.
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