NVDA PEG Ratio Analysis
Higher than 27% of Technology sector peers
Updated 804h ago·SEC filings & market data
Key Takeaway
A PEG ratio of 0.16x compares a stock's price-to-earnings multiple with its expected earnings growth rate, where a value below 1 typically indicates the stock is undervalued relative to its growth prospects.
Sector Performance
27th percentileNVDA
0.23x
Sector Median
0.85x
Sector Avg
2.53x
Prior Period
0.16x(Aug 2026)
Deep Analysis
A PEG ratio of 0.16x compares a stock's price-to-earnings multiple with its expected earnings growth rate, where a value below 1 typically indicates the stock is undervalued relative to its growth prospects.
This places NVIDIA well below its sector median of 0.80x, ranking at the 29th percentile among technology peers, meaning most competitors carry a higher PEG ratio. The metric is largely N/A, with no year-over-year change reported, but the quarter-over-quarter change is +6.7%, moving from 0.15x to 0.16x. The combination of a very low absolute level with a slight quarterly rise suggests the stock remains attractively priced for its growth, with the modest increase doing little to alter its value proposition. This translates to a lower valuation risk for investors, as the share price is not stretched relative to expected earnings expansion. This metric directly supports the overall BULLISH verdict, as the extremely low PEG ratio signals that growth is available at a favorable cost.
Frequently Asked Questions
What does the PEG Ratio tell investors about NVDA?
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
How is the PEG Ratio calculated?
PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.
How does NVDA's PEG Ratio compare to its sector?
NVDA's PEG Ratio of 0.23x compares to a Technology sector median of 0.85x, placing it in the 27th percentile.
Who are NVDA's closest peers by PEG Ratio?
The closest Technology peers by PEG Ratio include: MSFT (0.85x), AVGO (0.71x), PLTR (0.60x), MRVL (0.59x), ANSS (1.12x).
Learn More About PEG Ratio
The Formula
P/E Ratio / EPS Growth Rate
Why It Matters
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
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0.23x
Sector Median
0.85x
Sector Avg
2.53x
How NVDA's PEG Ratio compares to sector peers.
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