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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Nvidia Corp. To summarize, we found that Nvidia Corp ranked in the 28th 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:
The company has produced more trailing twelve month cash flow than 93.08% of its sector Technology.
The business' balance sheet suggests that 2% of the company's capital is sourced from debt; this is greater than merely 10.69% 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 48.7% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ADSK, AKAM, EVTC, EXTR, and MANT can be thought of as valuation peers to NVDA, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
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