Nvidia Corporation Quarterly Valuation – January 2015 $NVDA

197px-Nvidia_logo.svg

Nvidia 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 and PB ratios. 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 $0.87 for 2015. This level of demonstrated growth is fairly strong, and outpaces the market’s implied estimate of 6.79%. 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.

Be sure to check out previous ModernGraham valuations of Nvidia Corporation (NVDA) for greater perspective!

Read the full valuation on Seeking Alpha!

NVDA Chart

NVDA data by YCharts

Disclaimer:  The author did not hold a position in Nvidia Corporation (NVDA) at the time of publication and had no intention of changing that position within the next 72 hours.  Logo taken from Wikipedia for the sole purpose of identifying the company; this article is not affiliated with the company in any manner.


Posted

in

,

by

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.