Business quality: stronger than mostValuation: cheaper than most
A stronger business than most information technology companies, priced below most of them.
Nvidia trades at 16.9 times the next 12 months of expected earnings, against a median of 22.2x for the 99 information technology stocks we cover. The quality score blends where it ranks on revenue growth, gross margin, operating margin and free-cash-flow margin (net margin for banks and insurers) over the last 12 months, from SEC filings.
- Revenue grew faster than the sector median: +83.4% vs +20.6%
- Keeps more of each sale (gross margin): 74.7% vs 61.5%
- More profitable (operating margin): 65.2% vs 17.0%
- Turns more of its sales into cash: 41.9% vs 21.7%