GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » NVIDIA Corp (LIM:NVDA) » Definitions » PE Ratio

NVIDIA (LIM:NVDA) PE Ratio : 54.09 (As of Dec. 13, 2024)


View and export this data going back to 2019. Start your Free Trial

What is NVIDIA PE Ratio?

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2024-12-13), NVIDIA's share price is $137.45. NVIDIA's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Oct. 2024 was $2.54. Therefore, NVIDIA's PE Ratio for today is 54.09.

During the past 13 years, NVIDIA's highest PE Ratio was 243.49. The lowest was 16.74. And the median was 51.45.

NVIDIA's EPS (Diluted) for the three months ended in Oct. 2024 was $0.78. Its EPS (Diluted) for the trailing twelve months (TTM) ended in Oct. 2024 was $2.54.

As of today (2024-12-13), NVIDIA's share price is $137.45. NVIDIA's EPS without NRI for the trailing twelve months (TTM) ended in Oct. 2024 was $2.60. Therefore, NVIDIA's PE Ratio without NRI ratio for today is 52.97.

During the past 13 years, NVIDIA's highest PE Ratio without NRI was 152.78. The lowest was 13.85. And the median was 45.55.

NVIDIA's EPS without NRI for the three months ended in Oct. 2024 was $0.81. Its EPS without NRI for the trailing twelve months (TTM) ended in Oct. 2024 was $2.60.

During the past 12 months, NVIDIA's average EPS without NRI Growth Rate was 210.00% per year. During the past 3 years, the average EPS without NRI Growth Rate was 68.40% per year. During the past 5 years, the average EPS without NRI Growth Rate was 44.70% per year. During the past 10 years, the average EPS without NRI Growth Rate was 41.10% per year.

During the past 13 years, NVIDIA's highest 3-Year average EPS without NRI Growth Rate was 102.10% per year. The lowest was -37.60% per year. And the median was 37.25% per year.

NVIDIA's EPS (Basic) for the three months ended in Oct. 2024 was $0.79. Its EPS (Basic) for the trailing twelve months (TTM) ended in Oct. 2024 was $2.57.

Back to Basics: PE Ratio


NVIDIA PE Ratio Historical Data

The historical data trend for NVIDIA's PE Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

NVIDIA PE Ratio Chart

NVIDIA Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 52.31 75.09 63.60 112.28 51.57

NVIDIA Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
PE Ratio Get a 7-Day Free Trial 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 53.73 51.57 50.50 54.91 52.25

Competitive Comparison of NVIDIA's PE Ratio

For the Semiconductors subindustry, NVIDIA's PE Ratio, along with its competitors' market caps and PE Ratio data, can be viewed below:

* 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. Note that "N/A" values will not show up in the chart.


NVIDIA's PE Ratio Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, NVIDIA's PE Ratio distribution charts can be found below:

* The bar in red indicates where NVIDIA's PE Ratio falls into.



NVIDIA PE Ratio Calculation

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

NVIDIA's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=137.45/2.541
=54.09

NVIDIA's Share Price of today is $137.45.
NVIDIA's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Oct. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $2.54.


* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

It can also be calculated from the numbers for the whole company:


There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio, Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


NVIDIA  (LIM:NVDA) PE Ratio Explanation

The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.

If a company loses money, the PE Ratio becomes meaningless.

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.

Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratios are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio.

PE Ratio can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio.


NVIDIA PE Ratio Related Terms

Thank you for viewing the detailed overview of NVIDIA's PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


NVIDIA Business Description

Address
2788 San Tomas Expressway, Santa Clara, CA, USA, 95051
Nvidia is a leading developer of graphics processing units. Traditionally, GPUs were used to enhance the experience on computing platforms, most notably in gaming applications on PCs. GPU use cases have since emerged as important semiconductors used in artificial intelligence. Nvidia not only offers AI GPUs, but also a software platform, Cuda, used for AI model development and training. Nvidia is also expanding its data center networking solutions, helping to tie GPUs together to handle complex workloads.