NVIDIA Corporation's products and services are visual computing platforms that address four markets: Gaming, Enterprise, High Performance Computing & Cloud, and Automotive. The Company operates in two segments: Graphics Processing Unit and Tegra Processor. The company was founded in 1993 and is based in Santa Clara, California.
NVDA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for NVDA, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Nvidia Corp ranked in the 29th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for NVDA, they are:
As a business, NVDA is generating more cash flow than 93.08% of positive cash flow stocks in the Technology.
The business' balance sheet suggests that 2% of the company's capital is sourced from debt; this is greater than only 10.87% of the free cash flow producing stocks we're observing.
NVDA's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 48.52% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as NVDA, try CRUS, EVTC, MANT, ADSK, and EXTR.
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In this article, we discuss the 10 best aggressive stocks to buy now according to hedge funds. If you’re in a hurry, you can skip and click to read the 5 Best Aggressive Stocks to Buy Now. An aggressive stock can be defined as high performing above average companies that experience rapid growth in terms […]
Speaking of businesses flying high right now, three Fool.com contributors think NVIDIA (NASDAQ: NVDA), Fastly (NYSE: FSLY), and Sea (NYSE: SE) are worth considering if you don't own them yet -- even after triple-digit percentage returns in 2020. Nicholas Rossolillo (NVIDIA): This top semiconductor company is no secret. Driven by its graphics processing technology (historically the realm of high-end video games), NVIDIA has been finding all sorts of new outlets for its chip designs.