Highly Regarded

Is NVIDIA Corporation (NVDA) Stock Undervalued or Overvalued?

Trailing-twelve-month multiples vs Technology sector peers in our coverage

38% Discount TTM fundamentals · sector averages from covered peers

NVDA trades at 54.7× TTM earnings — a 38% discount to its Technology sector average of 88.6× in our coverage.

The Numbers

P/E (TTM)

54.7×

Sector avg: 88.6×

P/S (TTM)

28.7×

Sector avg: 19.9×

Market Cap

$5.37T

EPS (TTM): $4.04

Revenue (TTM)

$187.14B

Net income: $99.20B

Technology Peer Comparison

How NVDA's multiples stack up against sector peers we cover. Click any peer for its own valuation breakdown.

Stock Price P/E (TTM)
NVDA This page $220.92 54.7×
AAPL $316.83 40.1×
MSFT $507.14 31.7×
AVGO $370.45 77.7×
AMD $470.95 177.7×
INTC $89.54 —
PLTR $186.32 433.3×
CSCO $110.47 42.7×
ORCL $149.14 34.5×
CRM $257.65 37.4×
TXN $260.82 47.9×
QCOM $170.46 34.4×
ADBE $292.76 17.5×

Is the Discount Justified?

August 30, 2026

NVIDIA's P/E multiple of 53.8x, while high, is at a discount to the Technology sector average of 85.4x. This valuation reflects its exceptional growth driven by the accelerating demand for AI. In Q2 fiscal 2027, NVIDIA reported revenue of $96.2 billion, a 106% increase year-over-year, with Data Center revenue surging 117%. The company projects continued strong growth, with a Q3 revenue outlook of $108.0 billion and an expectation of 70% revenue growth in fiscal 2028. Despite these robust figures and high gross margins, the discount to the sector average could imply market skepticism regarding the long-term sustainability of such rapid expansion or potential supply chain constraints, particularly concerning memory.

Sources

Frequently Asked Questions

Is NVDA overvalued or undervalued?
On trailing-twelve-month earnings, NVDA trades at 54.7x versus a Technology sector average of 88.6x in our coverage — a 38.3% discount. Whether that's justified depends on growth, margins, and risk; see the context above.
What does the P/E ratio tell you?
Price-to-earnings compares a company's share price with its per-share profits. A higher multiple means investors pay more per dollar of earnings — often for faster expected growth — while a lower one can signal slower growth or higher perceived risk.
Why compare against the sector average?
Valuation multiples vary structurally between industries — software typically trades richer than banks or energy. Comparing NVDA with its own Technology peers is more informative than comparing against the whole market.
Is a cheap stock automatically a good buy?
No. A discount can be justified by weak growth or elevated risk (a "value trap"), and a premium can be earned by quality and consistency. Valuation is one input — pair it with the fundamentals and the AI context on this page.

Methodology

Multiples are computed from trailing-twelve-month fundamentals (from company filings) and the latest share price: P/E is price ÷ diluted EPS, and P/S is market cap ÷ revenue. Sector averages use the Technology names in our 50-stock coverage with positive earnings — a deliberately like-for-like, if imperfect, benchmark.

Stocks with negative trailing earnings are compared on price-to-sales instead. Multiples update with prices and fundamentals; AI context refreshes weekly.

Not Financial Advice

This page is for education and information only. Indicators are mechanical calculations, AI commentary can contain errors, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a qualified financial advisor. See our full disclaimer.

Keep Digging on NVDA

NVIDIA Corporation Overview

Price, chart, analysis & financials

NVDA: Overbought or Oversold?

Updated daily

NVDA: Why Is It Moving?

Updated daily

NVDA: Price Prediction

Updated daily

Same question, Technology peers

QCOM PLTR AAPL AMD INTC ORCL