FAIR PRICE IS $109.50 $NVDA IS OVERVALUED BASED ON CHATGPT ANALYSIS POWERED BY NVDIA'S AI CHIPS
Assuming:
Revenue Growth Rate: 20% annually (reasonable given the past year's growth)
EPS Growth Rate: 25% annually (reflecting strong profit growth potential)
Future P/E Ratio: 30 (a more conservative and sustainable multiple for a mature growth company)
Calculations:
Revenue Projections:
Year 1: $60.92 billion * 1.20 = $73.10 billion
Year 2: $73.10 billion * 1.20 = $87.72 billion
Year 3: $87.72 billion * 1.20 = $105.26 billion
Year 4: $105.26 billion * 1.20 = $126.31 billion
Year 5: $126.31 billion * 1.20 = $151.57 billion
EPS Projections:
Year 1: $1.19 * 1.25 = $1.49
Year 2: $1.49 * 1.25 = $1.87
Year 3: $1.87 * 1.25 = $2.34
Year 4: $2.34 * 1.25 = $2.92
Year 5: $2.92 * 1.25 = $3.65
Future Stock Price:Future stock price in 5 years = $3.65 (EPS) * 30 (P/E) = $109.50
Summary
Let's assume the following projections based on typical growth rates for a high-growth tech company:
Starting from $60.92 billion, projected to grow at 20% annually:
Starting from $1.19, projected to grow at 25% annually:
Assuming a future P/E ratio of 30:
This calculation suggests that if NVIDIA's EPS grows as projected, and the P/E ratio contracts to 30, the future stock price could be around $109.50 in five years. Given that the current stock price is $118, this suggests a negative compound annual growth rate (CAGR).
While NVIDIA's historical growth has been impressive, the high current valuation (P/E of 69.11) suggests that a lot of future growth is already priced in. If the P/E ratio contracts to 30, even with strong EPS growth, the stock price might not increase significantly from its current level, and could even decrease.
These projections are based on several assumptions, and actual performance can vary. Investors should consider potential risks, market conditions, and conduct thorough research or consult with financial advisors before making investment decisions.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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jiecheng1314 : nor la, Fair price is $50
Jensen 108 : this is just a reference, if so accurate them all those investments meaningless![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
想要做富人 : You must be highly sought after by all the big bank and must be a billionaire since chatgpt is 100%al accurate
Jamesjinlin : Goddess
Spread Love N Joy jiecheng1314 :