Highly Regarded

Is NVIDIA Corporation (NVDA) Stock Undervalued or Overvalued?

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

41% Discount TTM fundamentals · sector averages from covered peers

NVDA trades at 53.5× TTM earnings — a 41% discount to its Technology sector average of 90.1× in our coverage.

The Numbers

P/E (TTM)

53.5×

Sector avg: 90.1×

P/S (TTM)

28.1×

Sector avg: 20.0×

Market Cap

$5.25T

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 $216.01 53.5×
AAPL $342.78 43.4×
MSFT $528.19 33.1×
AVGO $333.40 69.9×
AMD $536.41 202.4×
INTC $91.31 —
PLTR $186.74 434.3×
CSCO $107.70 41.6×
ORCL $129.57 30.0×
TXN $280.15 51.4×
CRM $240.15 34.9×
QCOM $174.61 35.3×
ADBE $245.38 14.7×

Is the Discount Justified?

October 4, 2026

NVIDIA's P/E of 57.9x, while appearing high, is at a discount to its sector average of 91.7x, which is notable given its exceptional growth. The Data Center segment, the primary growth engine, saw revenue surge 117% year-over-year to $89 billion in Q2 fiscal 2027, contributing to a total revenue of $96.2 billion. The company anticipates 70% revenue growth for 2027, driven by relentless demand for AI infrastructure and the increasing adoption of AI agents. NVIDIA is expanding its ecosystem, underwriting demand, and increasing capacity commitments to meet future AI spending, projected to reach trillions by 2030, suggesting strong future growth potential that could pressure its current discount.

Sources

Frequently Asked Questions

Is NVDA overvalued or undervalued?
On trailing-twelve-month earnings, NVDA trades at 53.5x versus a Technology sector average of 90.1x in our coverage — a 40.6% 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.

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