Nvidia stock analysis #shorts

Bullish Studio

Quick analysis of Nvidia stock. For more detailed ideas visit our substack https://www.overlookedalpha.com  #stocks #investing #shorts #stockmarket #finance

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00:00 Should you buy Nvidia stock?

00:02 Nvidia is a leader in microchips, graphical processing units and software. With $13.1

00:08 billion of cash on the balance sheet including marketable securities, the enterprise value

00:12 is roughly $388 billion. This gives Nvidia a valuation around 13.6 times revenue or 65

00:19 times earnings.

00:20 Let's assume a basic scenario where Nvidia grows revenue 15% per year for the next 10

00:25 years, then trades at a 25 times multiple to earnings with a 35% net income margin,

00:31 earnings would be roughly $40 billion and the company would be worth around $1 trillion

00:35 in 10 years time, which works out to an investment return of 10% per annum.

00:40 But that's not a great return for such an optimistic scenario. The problem is that Nvidia

00:44 stock has rebounded 46% over the past few weeks taking the P/E multiple back past 60

00:51 and that's simply too expensive right now at this point in the cycle. For more detailed

00:55 analysis visit our website overlookedalpha.com

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