P/E Ratio
Higher than 42% of Technology sector peers
Updated 23h ago
Sector Performance
42th percentileNVDA
29.7x
Sector Median
36.9x
Sector Avg
122.3x
Deep Analysis
NVIDIA’s current P/E ratio of 29.7x means investors are paying $29.70 for every $1 of the company’s earnings — a lower multiple often indicates cheaper valuation relative to earnings.
This sits below the sector median of 36.9x, placing NVDA in the 42nd percentile among technology peers, meaning it is more attractively priced than 58% of them. The metric has been stable over the last eight quarters, with a year-over-year decline of 12.6% and a quarter-over-quarter decline of 5.0%. The combination of a below‑median P/E and a steady downward trend suggests reduced valuation risk compared to the sector, though it could also signal slowing earnings growth expectations. This metric supports the overall BULLISH verdict because a lower, stable P/E relative to peers leaves more room for upside if earnings hold or improve.
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 29.7x compares to a Technology sector median of 36.9x, placing it in the 42th percentile.
Who are NVDA's closest peers by P/E Ratio?
The closest Technology peers by P/E Ratio include: SAP (25.1x), ZI (24.9x), MSFT (24.7x), QRVO (21.8x), LIF (20.9x).
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.
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29.7x
Sector Median
36.9x
Sector Avg
122.3x
How NVDA's P/E Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.