What Investors in NVDA Stock Should DoĪll eyes will be on the earnings release set for May 25 covering its fiscal first quarter ending April 30. That works out to a mean upside of 30% from today, or $216.76. So it looks like NVDA stock is worth somewhere between 11.5% and 49% over today. This is still at least 11.5% over today’s price. The average of both is $247.80, which is 48.6% over today’s price.īut, just to be conservative, let’s apply a 30x multiple instead of 40x to each year’s forecast and then average them. That is 35.5% over today’s price.Īnd if we apply the 40x multiple to the 2023 projection of $6.74, the price target rises to $269.60. If we apply this 40x multiple to the 2022 EPS forecast of $5.65, the resulting price target is $226.00. This implies that the stock could be seriously cheap. For example, shows that its past 5-year forward P/E has averaged 40.2x. This is very cheap compared to Nvidia’s historical forward multiple. Where This Leaves Nividia Stock Going Forwardįrankly, that is a pretty good problem to have. It’s lower simply because the growth rate in earnings per share will fall from 27% this year to 20% or so next year.
So you can see that NVDA stock is falling not because analysts expect the company to start losing money.
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