NVDABULLISH

NVDA P/E Ratio Analysis

29.0x

Higher than 41% of Technology sector peers

Updated 804h ago·SEC filings & market data

Key Takeaway

The P/E ratio measures the price investors pay for each dollar of annual earnings—at 29.0x, NVIDIA is valued below the Technology sector median of 37.1x, placing it at the 41st percentile among peers.

Sector Performance

41th percentile

NVDA

29.0x

Sector Median

37.1x

Sector Avg

160.8x

Prior Period

33.1x(Aug 2026)

↑ Improving

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Deep Analysis

The metric has been decreasing over the last eight quarters: it fell 12.3% quarter-over-quarter from 33.1x to 29.0x, and the prior reading of 34.3x shows the downward path, though year-over-year change is not available. A below-median, declining P/E can mean the stock is becoming cheaper relative to earnings, which may lower valuation risk for investors. However, this trend could also reflect slowing earnings growth expectations rather than an undervaluation signal. This supports the overall BULLISH verdict, since a lower multiple against a bullish outlook leaves more room for upside.

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 29.0x compares to a Technology sector median of 37.1x, placing it in the 41th 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.