NVIDIA Corporation(NVDA)
NASDAQ

Fundamental Analysis & Financials

$189.82
1.92 (1.02%)

Valuation Snapshot

What the multiples imply about expectations

The market considers the company to be a mega-cap leader with a significant market presence. At current multiples, it trades at a premium—reflecting strong brand and market position, but leaving limited room for disappointment.

Valuation Metrics

Ratios and multiples

Forward P/E
24.19
EV/Revenue (TTM)24.14
Price/FCF (TTM)85.77

Financial Health

Liquidity and leverage

ROE (TTM)107.36%
ROA (TTM)53.53%
Debt/Equity (MRQ)9.10

The company's financial health appears excellent. High ROE and strong ROA reflect highly efficient capital use. Debt is elevated but represents structural leverage for shareholder return strategy (buybacks) rather than operational stress.

Valuation Multiples

Current valuation metrics

P/E Ratio46.46
P/B Ratio38.37
P/S Ratio24.42
EV/EBITDA40.09
PEG Ratio0.71

Quarterly Earnings History

Recent quarterly financial performance and trends

Latest Quarter
Q4 2025
Revenue (TTM)
$57.01B
Net Income (TTM)
$31.91B
EPS (Diluted)
$1.30
QuarterRevenueNet IncomeGross ProfitEPS (Basic)EPS (Diluted)Gross MarginNet Margin
Q4 2025(Latest)$57.01B$31.91B$41.85B$1.31$1.3073.4%56.0%
Q3 2025$46.74B$26.42B$33.85B$1.08$1.0872.4%56.5%
Q2 2025$44.06B$18.77B$26.67B$0.77$0.7660.5%42.6%
Q1 2025$39.33B$22.09B$28.72B$0.90$0.8973.0%56.2%

Key Insights:

  • Revenue increased by 22.0% from previous quarter
  • Net margin of 56.0% indicates strong profitability
  • EPS improved by 20.4% quarter-over-quarter

Financial Efficiency

Utilization and collections performance

Asset Turnover 1.68 indicates high efficiency. Receivables Turnover 8.11 and DSO 44.99 reflect good collections. Working Capital Turnover 3.01 is moderately efficient. ROIC 113.0% highlights strong capital returns.

Efficiency Metrics

Asset Turnover1.68
Receivables Turnover8.11
Working Capital Turnover3.01
Days Sales Outstanding44.99
Days Inventory Outstanding112.72
ROIC (TTM)113.0%
Inventory Turnover3.24
Cash Conversion Cycle87.15

Profitability & Growth

Margins and earnings power

Revenue (TTM)
$187.14B
62.50 YoY
Profit Margin (TTM)
53.01%
Operating Margin (TTM)
63.17%
Gross Profit (TTM)
$131.09B
Gross Margin 70.05%
EBITDA (TTM)
$112.70B
EBITDA Margin 60.22%
Net Income (TTM)
$99.20B
Earnings 66.70% YoY

Efficiency Performance Matrix

4-quadrant analysis of operational efficiency vs profitability

Efficiency vs Profitability Quadrants

High Efficiency
High Margin
High Efficiency
Low Margin
Low Efficiency
High Margin
Low Efficiency
Low Margin

Efficiency Analysis

Asset Turnover
Efficiency:1.68x
Margin:70.0%
Quadrant:Optimal
Receivables Turnover
Efficiency:8.11x
Margin:63.2%
Quadrant:Optimal
Working Capital
Efficiency:3.01x
Margin:53.0%
Quadrant:Margin-Driven
Overall Efficiency Score

Strong operational efficiency with balanced profitability

⚠️ Thresholds are benchmark-based heuristics derived from long-term industry averages, not strict valuation rules.

• Bubble size represents ROIC magnitude

• Green (Optimal): Excellent efficiency-profitability balance

• Blue (Efficiency-Driven): High turnover, room to improve margins

• Yellow (Margin-Driven): Strong margins, opportunity to improve efficiency

• Red (Weak Operations): Areas needing improvement on both dimensions

Market Data & Share Structure

Comprehensive valuation metrics and ownership breakdown

Market Data & Capitalization

Market Cap
$4.57T
Mega-cap: Premium liquidity & institutional favorite
Enterprise Value
$4.52T
EV ≈ Market Cap: Balanced capital structure
Next Earnings Date
02/25/2026
Earnings announcement today - high volatility expected

Share Statistics & Ownership

Shares Outstanding
N/A
Total shares issued and held by all shareholders
Shares Float
N/A
Shares available for public trading
Institutional Ownership
N/A
Held by funds, pensions, endowments
Insider Ownership
N/A
Held by executives and board members
Shares Short
N/A
Shares sold short - bearish bets
Implied Shares Outstanding
N/A
Calculated from market cap and price

Profitability Margin Pyramid

Hierarchical view of margin compression from revenue to net income

Margin Hierarchy by Profitability Level

100.0%
Revenue
$187.14B
70.0%
Gross Profit
$131.09B
60.2%
EBITDA
$112.70B
53.0%
Net Income
$99.20B
Margin Profile:
Revenue100.0% margin (Top line revenue generation)
Gross Profit70.0% margin (Revenue minus cost of goods sold)
EBITDA60.2% margin (Earnings before interest, taxes, depreciation, and amortization)
Net Income53.0% margin (Bottom line profitability after all expenses)

Margin Analysis

Total Revenue

Amount:$187.14B
Margin:100.0%
Top line revenue generation

Gross Profit

Amount:$131.09B
Margin:70.0%
Revenue minus cost of goods sold

EBITDA

Amount:$112.70B
Margin:60.2%
Earnings before interest, taxes, depreciation, and amortization

Net Income

Amount:$99.20B
Margin:53.0%
Bottom line profitability after all expenses

Margin Quality Assessment

Excellent margin structure with strong bottom-line profitability

• Larger circles represent higher dollar amounts

• Margin percentages show profitability at each level

• Blue: Revenue base

• Green: Gross profitability

• Yellow: Operating performance

• Red: Net profitability

Operating Cash & Liquidity

Core cash generation and short-term solvency

Cash Flow Analysis

Operating Cash Flow (TTM)

$83.16B

Cash from core operations

Free Cash Flow (TTM)

$53.28B

Available after capex

Financial Position & Liquidity

Current Ratio

4.47

Healthy

Quick Ratio

3.60

Strong

Net Cash

$49.79B

Net creditor

Total Cash

$60.61B

Balance sheet cash

Total Debt

$10.82B

Outstanding borrowings

Dividends & Shareholder Returns

Policy stance and implications

The company maintains a very sustainable dividend policy with a payout ratio of 1.0% (FCF coverage: 54.3x). Strong cash flow coverage supporting modest shareholder yield with ample room for sustainability.

Payout Ratio
0.99%
Trailing Dividend Rate
0.04
Trailing Dividend Yield
0.02%
5 Year Avg Dividend Yield
5.00%
Forward Annual Dividend Rate
0.04
Forward Annual Dividend Yield
2.00%
Ex-Dividend Date
12/04/2025
Last Split
06/10/2024 (10.00)