NVIDIA CORP (NVDA) Fundamental Analysis & Valuation
NASDAQ:NVDA • US67066G1040
185.53 USD
+0.76 (+0.41%)
Last: Mar 11, 2026, 01:26 PM
This NVDA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 9 out of 10 to NVDA. NVDA was compared to 115 industry peers in the Semiconductors & Semiconductor Equipment industry. NVDA scores excellent points on both the profitability and health parts. This is a solid base for a good stock. NVDA is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, NVDA could be worth investigating further for growth and quality investing!.
1. NVDA Profitability Analysis
1.1 Basic Checks
- In the past year NVDA was profitable.
- NVDA had a positive operating cash flow in the past year.
- NVDA had positive earnings in each of the past 5 years.
- Each year in the past 5 years NVDA had a positive operating cash flow.
1.2 Ratios
- NVDA's Return On Assets of 58.06% is amongst the best of the industry. NVDA outperforms 100.00% of its industry peers.
- With an excellent Return On Equity value of 76.33%, NVDA belongs to the best of the industry, outperforming 98.26% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 64.32%, NVDA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- NVDA had an Average Return On Invested Capital over the past 3 years of 63.97%. This is significantly above the industry average of 10.52%.
- The last Return On Invested Capital (64.32%) for NVDA is above the 3 year average (63.97%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 58.06% | ||
| ROE | 76.33% | ||
| ROIC | 64.32% |
ROA(3y)56.21%
ROA(5y)40.26%
ROE(3y)79.15%
ROE(5y)58.77%
ROIC(3y)63.97%
ROIC(5y)46.09%
1.3 Margins
- NVDA has a Profit Margin of 55.60%. This is amongst the best in the industry. NVDA outperforms 98.26% of its industry peers.
- NVDA's Profit Margin has improved in the last couple of years.
- NVDA's Operating Margin of 60.62% is amongst the best of the industry. NVDA outperforms 100.00% of its industry peers.
- In the last couple of years the Operating Margin of NVDA has grown nicely.
- The Gross Margin of NVDA (71.31%) is better than 93.04% of its industry peers.
- In the last couple of years the Gross Margin of NVDA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 60.62% | ||
| PM (TTM) | 55.6% | ||
| GM | 71.31% |
OM growth 3Y37.62%
OM growth 5Y16.64%
PM growth 3Y50.86%
PM growth 5Y16.44%
GM growth 3Y6.21%
GM growth 5Y2.48%
2. NVDA Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NVDA is creating value.
- Compared to 1 year ago, NVDA has less shares outstanding
- Compared to 5 years ago, NVDA has less shares outstanding
- Compared to 1 year ago, NVDA has an improved debt to assets ratio.
2.2 Solvency
- NVDA has an Altman-Z score of 59.08. This indicates that NVDA is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 59.08, NVDA belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
- NVDA has a debt to FCF ratio of 0.09. This is a very positive value and a sign of high solvency as it would only need 0.09 years to pay back of all of its debts.
- NVDA has a Debt to FCF ratio of 0.09. This is amongst the best in the industry. NVDA outperforms 83.48% of its industry peers.
- NVDA has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
- With a Debt to Equity ratio value of 0.05, NVDA perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.09 | ||
| Altman-Z | 59.08 |
ROIC/WACC5.48
WACC11.74%
2.3 Liquidity
- A Current Ratio of 3.91 indicates that NVDA has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 3.91, NVDA is in the better half of the industry, outperforming 62.61% of the companies in the same industry.
- A Quick Ratio of 3.24 indicates that NVDA has no problem at all paying its short term obligations.
- Looking at the Quick ratio, with a value of 3.24, NVDA is in the better half of the industry, outperforming 66.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.91 | ||
| Quick Ratio | 3.24 |
3. NVDA Growth Analysis
3.1 Past
- NVDA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 64.77%, which is quite impressive.
- Measured over the past years, NVDA shows a very strong growth in Earnings Per Share. The EPS has been growing by 81.58% on average per year.
- Looking at the last year, NVDA shows a very strong growth in Revenue. The Revenue has grown by 65.47%.
- Measured over the past years, NVDA shows a very strong growth in Revenue. The Revenue has been growing by 66.90% on average per year.
EPS 1Y (TTM)64.77%
EPS 3Y145.55%
EPS 5Y81.58%
EPS Q2Q%82.02%
Revenue 1Y (TTM)65.47%
Revenue growth 3Y100.05%
Revenue growth 5Y66.9%
Sales Q2Q%73.21%
3.2 Future
- The Earnings Per Share is expected to grow by 21.90% on average over the next years. This is a very strong growth
- Based on estimates for the next years, NVDA will show a very strong growth in Revenue. The Revenue will grow by 25.75% on average per year.
EPS Next Y68.42%
EPS Next 2Y49.45%
EPS Next 3Y38.8%
EPS Next 5Y21.9%
Revenue Next Year65.72%
Revenue Next 2Y46.59%
Revenue Next 3Y37.23%
Revenue Next 5Y25.75%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. NVDA Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 37.63, the valuation of NVDA can be described as expensive.
- 73.04% of the companies in the same industry are more expensive than NVDA, based on the Price/Earnings ratio.
- NVDA's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.25.
- The Price/Forward Earnings ratio is 22.34, which indicates a rather expensive current valuation of NVDA.
- 80.00% of the companies in the same industry are more expensive than NVDA, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of NVDA to the average of the S&P500 Index (24.39), we can say NVDA is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.63 | ||
| Fwd PE | 22.34 |
4.2 Price Multiples
- NVDA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NVDA is cheaper than 66.09% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of NVDA indicates a somewhat cheap valuation: NVDA is cheaper than 70.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.63 | ||
| EV/EBITDA | 32.78 |
4.3 Compensation for Growth
- NVDA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The excellent profitability rating of NVDA may justify a higher PE ratio.
- A more expensive valuation may be justified as NVDA's earnings are expected to grow with 38.80% in the coming years.
PEG (NY)0.55
PEG (5Y)0.46
EPS Next 2Y49.45%
EPS Next 3Y38.8%
5. NVDA Dividend Analysis
5.1 Amount
- With a yearly dividend of 0.02%, NVDA is not a good candidate for dividend investing.
- NVDA's Dividend Yield is a higher than the industry average which is at 0.49.
- With a Dividend Yield of 0.02, NVDA pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.02% |
5.2 History
- On average, the dividend of NVDA grows each year by 20.05%, which is quite nice.
- NVDA has paid a dividend for at least 10 years, which is a reliable track record.
- NVDA has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)20.05%
Div Incr Years1
Div Non Decr Years12
5.3 Sustainability
- 0.81% of the earnings are spent on dividend by NVDA. This is a low number and sustainable payout ratio.
- NVDA's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP0.81%
EPS Next 2Y49.45%
EPS Next 3Y38.8%
NVDA Fundamentals: All Metrics, Ratios and Statistics
NASDAQ:NVDA (3/11/2026, 1:26:10 PM)
185.53
+0.76 (+0.41%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-25 2026-02-25/amc
Earnings (Next)05-26 2026-05-26/amc
Inst Owners69.45%
Inst Owner Change0.89%
Ins Owners4.17%
Ins Owner Change-2.41%
Market Cap4.51T
Revenue(TTM)215.94B
Net Income(TTM)120.07B
Analysts84.93
Price Target260.08 (40.18%)
Short Float %1.09%
Short Ratio1.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.02% |
Yearly Dividend0.04
Dividend Growth(5Y)20.05%
DP0.81%
Div Incr Years1
Div Non Decr Years12
Ex-Date03-11 2026-03-11 (0.01)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.81%
Min EPS beat(2)1.99%
Max EPS beat(2)3.62%
EPS beat(4)4
Avg EPS beat(4)2.14%
Min EPS beat(4)0.83%
Max EPS beat(4)3.62%
EPS beat(8)8
Avg EPS beat(8)3.72%
EPS beat(12)12
Avg EPS beat(12)8.24%
EPS beat(16)14
Avg EPS beat(16)1.89%
Revenue beat(2)2
Avg Revenue beat(2)1.31%
Min Revenue beat(2)0.87%
Max Revenue beat(2)1.76%
Revenue beat(4)2
Avg Revenue beat(4)0.47%
Min Revenue beat(4)-0.5%
Max Revenue beat(4)1.76%
Revenue beat(8)6
Avg Revenue beat(8)1.65%
Revenue beat(12)10
Avg Revenue beat(12)4.51%
Revenue beat(16)12
Avg Revenue beat(16)2.18%
PT rev (1m)0.14%
PT rev (3m)1.65%
EPS NQ rev (1m)6.63%
EPS NQ rev (3m)7.35%
EPS NY rev (1m)5.51%
EPS NY rev (3m)6.93%
Revenue NQ rev (1m)9.9%
Revenue NQ rev (3m)10.46%
Revenue NY rev (1m)7.64%
Revenue NY rev (3m)9.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.63 | ||
| Fwd PE | 22.34 | ||
| P/S | 20.88 | ||
| P/FCF | 46.63 | ||
| P/OCF | 43.89 | ||
| P/B | 28.66 | ||
| P/tB | 33.86 | ||
| EV/EBITDA | 32.78 |
EPS(TTM)4.93
EY2.66%
EPS(NY)8.3
Fwd EY4.48%
FCF(TTM)3.98
FCFY2.14%
OCF(TTM)4.23
OCFY2.28%
SpS8.89
BVpS6.47
TBVpS5.48
PEG (NY)0.55
PEG (5Y)0.46
Graham Number26.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 58.06% | ||
| ROE | 76.33% | ||
| ROCE | 74.96% | ||
| ROIC | 64.32% | ||
| ROICexc | 100.22% | ||
| ROICexgc | 127.73% | ||
| OM | 60.62% | ||
| PM (TTM) | 55.6% | ||
| GM | 71.31% | ||
| FCFM | 44.77% |
ROA(3y)56.21%
ROA(5y)40.26%
ROE(3y)79.15%
ROE(5y)58.77%
ROIC(3y)63.97%
ROIC(5y)46.09%
ROICexc(3y)113.03%
ROICexc(5y)82.71%
ROICexgc(3y)136.27%
ROICexgc(5y)104.15%
ROCE(3y)74.55%
ROCE(5y)53.72%
ROICexgc growth 3Y53.6%
ROICexgc growth 5Y15.18%
ROICexc growth 3Y58.34%
ROICexc growth 5Y27.12%
OM growth 3Y37.62%
OM growth 5Y16.64%
PM growth 3Y50.86%
PM growth 5Y16.44%
GM growth 3Y6.21%
GM growth 5Y2.48%
F-Score4
Asset Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.09 | ||
| Debt/EBITDA | 0.06 | ||
| Cap/Depr | 212.52% | ||
| Cap/Sales | 2.8% | ||
| Interest Coverage | 6.45 | ||
| Cash Conversion | 76.8% | ||
| Profit Quality | 80.52% | ||
| Current Ratio | 3.91 | ||
| Quick Ratio | 3.24 | ||
| Altman-Z | 59.08 |
F-Score4
WACC11.74%
ROIC/WACC5.48
Cap/Depr(3y)152.34%
Cap/Depr(5y)131.77%
Cap/Sales(3y)2.34%
Cap/Sales(5y)3.49%
Profit Quality(3y)84.94%
Profit Quality(5y)85.08%
High Growth Momentum
Growth
EPS 1Y (TTM)64.77%
EPS 3Y145.55%
EPS 5Y81.58%
EPS Q2Q%82.02%
EPS Next Y68.42%
EPS Next 2Y49.45%
EPS Next 3Y38.8%
EPS Next 5Y21.9%
Revenue 1Y (TTM)65.47%
Revenue growth 3Y100.05%
Revenue growth 5Y66.9%
Sales Q2Q%73.21%
Revenue Next Year65.72%
Revenue Next 2Y46.59%
Revenue Next 3Y37.23%
Revenue Next 5Y25.75%
EBIT growth 1Y59.54%
EBIT growth 3Y175.31%
EBIT growth 5Y94.68%
EBIT Next Year82.78%
EBIT Next 3Y43.24%
EBIT Next 5Y21.1%
FCF growth 1Y58.87%
FCF growth 3Y193.91%
FCF growth 5Y83.13%
OCF growth 1Y60.27%
OCF growth 3Y163.09%
OCF growth 5Y77.55%
NVIDIA CORP / NVDA FAQ
What is the fundamental rating for NVDA stock?
ChartMill assigns a fundamental rating of 9 / 10 to NVDA.
What is the valuation status of NVIDIA CORP (NVDA) stock?
ChartMill assigns a valuation rating of 6 / 10 to NVIDIA CORP (NVDA). This can be considered as Fairly Valued.
What is the profitability of NVDA stock?
NVIDIA CORP (NVDA) has a profitability rating of 10 / 10.
Can you provide the expected EPS growth for NVDA stock?
The Earnings per Share (EPS) of NVIDIA CORP (NVDA) is expected to grow by 68.42% in the next year.
Can you provide the dividend sustainability for NVDA stock?
The dividend rating of NVIDIA CORP (NVDA) is 6 / 10 and the dividend payout ratio is 0.81%.