Using the industry peer median P/E multiple (trailing + forward), NVIDIA Corporation (NVDA) has a fair value of $202.91 based on 7 comparable companies in the Semiconductors industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| NVIDIA CorporationNVDA | 4,365,510 | 36.5x | 21.6x |
| Apple Inc.AAPL | 3,648,319 | 33.3x | 29.3x |
| Alphabet Inc.GOOGL | 3,644,584 | 27.9x | 26.3x |
| Microsoft CorporationMSFT | 2,755,206 | 27.2x | 22.5x |
| Taiwan Semiconductor Manufacturing Company LimitedTSM | 1,691,373 | 31.4x | 32.5x |
| Broadcom Inc.AVGO | 1,473,517 | 65.2x | 27.7x |
| Analog Devices, Inc.ADI | 154,224 | 69.3x | 49.8x |
| Teradyne, Inc.TER | 47,289 | 86.8x | 95.0x |
| Industry Median | 33.3x | 29.3x | |
| (*) Profit after tax | 120,067 | 202,326 | |
| Equity Value | 3,995,044 | 5,919,902 | |
| (/) Outstanding shares | 24,432 | 24,432 | |
| Fair Price | $164 | $242 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.