NVDANEUTRAL

NVDA P/E Ratio Analysis

34.3x

Higher than 44% of Technology sector peers

Updated 249h ago·SEC filings & market data

Key Takeaway

Trading at 34.3x, NVIDIA's price-to-earnings (P/E) ratio tells you the price you pay for each dollar of current annual earnings.

Sector Performance

44th percentile

NVDA

34.3x

Sector Median

37.1x

Sector Avg

160.9x

Prior Period

31.5x(Jul 2026)

↓ Declining

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Deep Analysis

Trading at 34.3x, NVIDIA's price-to-earnings (P/E) ratio tells you the price you pay for each dollar of current annual earnings.

Against sector peers, this is below the Technology median of 37.1x, placing NVIDIA in the 44th percentile, meaning it is cheaper than most peers on this basis. The metric is increasing, with the latest quarterly reading up 8.8% from 31.5x, while no year-over-year change figure is available; the prior quarters show a steady climb from 30.9x to 34.3x. A rising P/E paired with a level still under the sector median suggests earnings growth has not kept pace with a higher stock price, yet the valuation remains reasonable versus the group. This combination implies moderate risk: the market is paying more per dollar of earnings, but there is still room before NVIDIA becomes expensive relative to its sector. Overall, this P/E trend and relative level support the BULLISH verdict, as the multiple remains below the sector norm while demand for the stock strengthens.

Frequently Asked Questions

What does the P/E Ratio tell investors about NVDA?

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

How is the P/E Ratio calculated?

P/E Ratio is calculated as: Price / EPS.

How does NVDA's P/E Ratio compare to its sector?

NVDA's P/E Ratio of 34.3x compares to a Technology sector median of 37.1x, placing it in the 44th percentile.

Who are NVDA's closest peers by P/E Ratio?

The closest Technology peers by P/E Ratio include: AAPL (37.1x), AMAT (36.9x), APH (37.6x), AKAM (37.6x), APP (38.8x).

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The Formula

Price / EPS

Why It Matters

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.