USD 110.75 as of today(2019-10-14). NVDA Peter Lynch Fair Value explanation, calculation, historical data and more" />NVDA Peter Lynch Fair Value | NVIDIA - GuruFocus.com
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NVIDIA Peter Lynch Fair Value

: USD 110.75 (As of Today)
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Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year. Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. The growth rate we use is the average growth rate for earnings per share over the past 5 years. If 5-Year Earnings Growth Rate is greater than 25% a year, we use 25. If 5-Year Earnings Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.

Here, as of today, NVIDIA's PEG is 1. NVIDIA's 5-Year EBITDA Growth Rate is 25. NVIDIA's EPS without NRI for the trailing twelve months (TTM) ended in Jul. 2019 was USD 4.43. Therefore, the Peter Lynch Fair Value for today is USD 110.75.

As of today (2019-10-14), NVIDIA's share price is USD 186.53. NVIDIA's Peter Lynch fair value is USD 110.75. Therefore, NVIDIA's Price to Peter Lynch Fair Value Ratio for today is 1.68.


NAS:NVDA' s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 0.52   Max: 4.75
Current: 1.68

0.52
4.75

During the past 13 years, the highest Price to Peter Lynch Fair Value Ratio of NVIDIA was 4.75. The lowest was 0.52. And the median was 1.83.


NAS:NVDA's Price-to-Peter-Lynch-Fair-Value is ranked lower than
63% of the 234 Companies
in the Semiconductors industry.

( Industry Median: 1.30 vs. NAS:NVDA: 1.68 )

Note: Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart.


NVIDIA Peter Lynch Fair Value Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

NVIDIA Annual Data
Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19
Peter Lynch Fair Value Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 28.00 13.08 37.54 120.50 165.75

NVIDIA Quarterly Data
Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19
Peter Lynch Fair Value Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 171.25 187.25 165.75 132.25 110.75

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


NVIDIA Peter Lynch Fair Value Distribution

* The bar in red indicates where NVIDIA's Peter Lynch Fair Value falls into.



NVIDIA Peter Lynch Fair Value Calculation

NVIDIA's Peter Lynch Fair Value for today is calculated as

Peter Lynch Fair Value=PEG Ratio*5-Year EBITDA Growth Rate*EPS without NRI (TTM)
=1* 25 *4.43
=110.75

NVIDIA's EPS without NRI for the trailing twelve months (TTM) ended in Jul. 2019 was (Oct. 2018 ) + (Jan. 2019 ) + (Apr. 2019 ) + (Jul. 2019 ) = USD 4.43.


* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

If 5-Year Earnings Growth Rate is greater than 25% a year, we use 25.

If 5-Year Earnings Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.

Please note that we use the 5-year average growth rate of EBITDA per share as the growth rate. EBITDA growth is subject to less manipulations than net earnings per share. In the calculation, PEG=1 because Peter Lynch thinks that the fair P/E ratio of the growth stock is equal to its earnings growth rate.


NVIDIA  (NAS:NVDA) Peter Lynch Fair Value Explanation

Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year.

Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. The growth rate we use is the average growth rate for earnings per share over the past 5 years.

Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart. In Peter Lynch chart, a fixed P/E ratio of 15 is used to draw the Earnings Line. Therefore the value reached has a P/E ratio of 15. But in Peter Lynch Fair Value calculation, P/E equals to the growth rate of EBITDA over the past 5 years, which is 25 instead of 15 in this case.

NVIDIA's Price to Peter Lynch Fair Value Ratio for today is calculated as

Price to Peter Lynch Fair Value=Share Price/Peter Lynch Fair Value
=186.53/110.75
=1.68

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


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