Reported 12 months ago
The article discusses the current valuation of Nvidia stock, which is trading at nearly 74 times trailing-12-month earnings, leading to speculations of it being overpriced. However, some analysts believe that the stock may actually be undervalued due to its potential for growth. By considering factors like the price-to-earnings-to-growth (PEG) ratio and discounted cash flow analysis, it is suggested that Nvidia would need to deliver significant growth in earnings to be considered undervalued. While conventional valuation models may not currently support the view that Nvidia stock is undervalued, the perception of undervaluation ultimately depends on individual investors' perspectives and expectations for the company's future performance.
Source: YAHOO