PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, NVIDIA's PE Ratio without NRI is 69.16. NVIDIA's 5-Year EBITDA growth rate is 45.00%. Therefore, NVIDIA's PEG Ratio for today is 1.54.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for NVIDIA's PEG Ratio or its related term are showing as below:
NVDA'
s PEG Ratio Range Over the Past 10 Years
Min: 0.39 Med: 1.9 Max: 9.51
Current: 1.54
During the past 13 years, NVIDIA's highest PEG Ratio was 9.51. The lowest was 0.39. And the median was 1.90.
NVDA's PEG Ratio is ranked better than 50.26% of 386
companies
in the Semiconductors industry
Industry Median: 1.6
vs NVDA: 1.54
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
NVIDIA PEG Ratio Historical Data
The historical data trend for NVIDIA's PEG Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Premium members only.
NVIDIA Annual Data
Trend
Jan15
Jan16
Jan17
Jan18
Jan19
Jan20
Jan21
Jan22
Jan23
Jan24
PEG Ratio
1.45
2.50
2.28
3.77
1.17
NVIDIA Quarterly Data
Apr19
Jul19
Oct19
Jan20
Apr20
Jul20
Oct20
Jan21
Apr21
Jul21
Oct21
Jan22
Apr22
Jul22
Oct22
Jan23
Apr23
Jul23
Oct23
Jan24
PEG Ratio
3.77
5.65
3.89
1.50
1.17
Competitive Comparison
For the Semiconductors subindustry, NVIDIA's PEG Ratio, along with its competitors' market caps and PEG Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
NVIDIA PEG Ratio Distribution
For the Semiconductors industry and Technology sector, NVIDIA's PEG Ratio distribution charts can be found below:
* The bar in red indicates where NVIDIA's PEG Ratio falls into.
NVIDIA PEG Ratio Calculation
PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio.
The ratio we use is the 5-Year EBITDA growth rate.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
NVIDIA (NAS:NVDA) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
NVIDIA PEG Ratio Related Terms
Thank you for viewing the detailed overview of NVIDIA's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Nvidia is a leading developer of graphics processing units. Traditionally, GPUs were used to enhance the experience on computing platforms, most notably in gaming applications on PCs. GPU use cases have since emerged as important semiconductors used in artificial intelligence. Nvidia not only offers AI GPUs, but also a software platform, Cuda, used for AI model development and training. Nvidia is also expanding its data center networking solutions, helping to tie GPUs together to handle complex workloads.
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