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:
- Earnings Growth: Nvidia's net income growth rate is 628.39% year-on-year1, indicating a strong earnings performance.
- Revenue Growth: The total revenue growth rate is 262.12% year-on-year1, which is impressive for a single quarter.
- Price Target and Consensus Rating: The average price target is $958.48, with a "Strong Buy" consensus rating23, suggesting that analysts expect the stock to continue its upward trajectory.
- Valuation Ratios: The price-to-earnings (P/E) ratio is 71.354, the price-to-sales (P/S) ratio is 29.174, and the price-to-book (P/B) ratio is 61.844. These ratios are generally in line with the company's growth rates and market position.
- 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 growth56.
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.