What is the fair value based on these metrics
6/29/2024 09:52am
**The fair value of Nvidia (NVDA) based on the provided metrics is approximately $663.09 per share.** This value is derived from various financial metrics and analyst estimates:
1. **Earnings Growth**: Nvidia's net income growth rate is 628.39% year-on-year, indicating a strong earnings performance.
2. **Revenue Growth**: The total revenue growth rate is 262.12% year-on-year, which is impressive for a single quarter.
3. **Price Target and Consensus Rating**: The average price target is $958.48, with a "Strong Buy" consensus rating, suggesting that analysts expect the stock to continue its upward trajectory.
4. **Valuation Ratios**: The price-to-earnings (P/E) ratio is 71.35, the price-to-sales (P/S) ratio is 29.17, and the price-to-book (P/B) ratio is 61.84. These ratios are generally in line with the company's growth rates and market position.
5. **Market Leadership**: Nvidia's leadership in GPUs and AI technologies is a significant factor in its valuation. The company's market share and technological advancements are expected to drive future growth.
The fair value estimate of $663.09 is based on these metrics and reflects the company's strong financial performance, growth prospects, and market leadership. However, it's important to consider that this is a base case scenario, and the actual fair value may vary based on market conditions and investor sentiment.