Over the past five years, Nvidia (Nasdaq: NVDA) Actions have increased by almost 1,500%, making it one of the most precious companies in the world. Do you think it is too late to benefit as an investor? Be careful again. Depending on the graphics below, the actions remain very attractive for long-term investors.
Based on sales prices, NVIDIA actions seem scandalously expensive. The shares are negotiated at 21 times sales despite a market capitalization of around 3 billions of dollars. Few companies in history that of this size have exchanged such a high bonus. But because Nvidia is a profitable company, we can also examine the actions on a price base on profits. From this point of view, sharing do not seem so expensive. And with regard to shareholders’ yields, profits have much more than sales.
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Right now, the S&P 500 Overall, the profits are negotiated at 28 times. Nvidia’s shares are negotiated at a premium of 35% compared to the whole market – quite a lot for a very profitable company at the center of one of the largest growth markets in history: artificial intelligence (AI). But because its sales are still increasing to 50% or more per year, Nvidia’s shares are only negotiating the profits in the long term-that is to say on the basis of what analysts expect the company to win over the next 12 months. The price ratio / ultimate benefit of the S&P 500 is, for its part, which means that Nvidia is negotiated at a bonus of 25% on the long -term market.
As you can see, NVIDIA’s rapid growth should considerably reduce the action assessment bonus over the next 12 months. And given the growth in AI demand, this bonus should shrink for many years to come. Finally, Nvidia’s actions could exchange discount at the market according to today’s prices. This will require patience to play, but one thing is clear: from the point of view of gains, Nvidia is barely overvalued.
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On rare occasions, our team of analysts experts issues a The “Double Down” stock Recommendation for the companies they think are about to burst. If you are afraid, you have already missed your chance to invest, it’s the best time to buy before it is too late. And the figures speak for themselves:
