$NVIDIA (NVDA.US)$ Stop relying on analyst projections and p...

The company has an EV/EBIT ratio of 94. 2019 it was at around 20-30 and 2014 at around 10. Growth has accelerated, but not in the same vein as the multiple, which 3x in less than 3 years. .

Is Nvidia a great stock and here to stay. Yes, but it is also hella expensive. Things can even get more expensive, but the multiple might contract. What happens when we hit a bear market and the multiple goes back to 30 EV/EBIT? If you DCA, then that might be a decent strategy, but even if you cut the current stock price in half there is no proper margin of safety.