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 34th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Nvidia Corp, consider:
As a business, NVDA is generating more cash flow than 92.88% 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 merely 8.8% 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 2%; for context, that number is higher than 49.36% 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 SCKT, W, APH, MTLS, and ADBE.
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