Nvidia Corporation Quarterly Valuation – October 2014 $NVDA

197px-Nvidia_logo.svgNvidia should attract all Enterprising Investors with its strong financial condition as it passes all of the investor type’s requirements. The Defensive Investor should not be so keen on the company due to its insufficient level of earnings growth or stability over the last ten years, short dividend history, and high PEmg ratio. As a result, only Enterprising Investors should feel very comfortable proceeding to the next part of the analysis, which is a determination of the company’s intrinsic value.

The company has grown its EPSmg (normalized earnings) from $0.33 in 2011 to an estimated $0.84 for 2015. This level of demonstrated growth is fairly strong, and outpaces the market’s implied estimate of 6.10%. Based on the demonstrated growth, and lessened by a margin of safety, the ModernGraham valuation model estimates growth over the next 7-10 years to be very high. As a result, the company appears to be significantly undervalued at the present time.

Read the full valuation on Seeking Alpha!

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