As of September 4, 2025, NVIDIA Corp's estimated intrinsic value ranges from $15.81 to $273.83 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $273.83 | +60.5% |
| Discounted Cash Flow (5Y) | $159.36 | -6.6% |
| Dividend Discount Model (Multi-Stage) | $141.44 | -17.1% |
| Dividend Discount Model (Stable) | $62.72 | -63.2% |
| Earnings Power Value | $15.81 | -90.7% |
Is NVIDIA Corp (NVDA) undervalued or overvalued?
With the current market price at $170.62, the stock appears to be fairly valued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate NVIDIA Corp's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.99 | 1.07 |
| Cost of equity | 8.4% | 10.9% |
| Cost of debt | 4.0% | 4.5% |
| Tax rate | 3.4% | 7.5% |
| Debt/Equity ratio | 0 | 0 |
| After-tax WACC | 8.4% | 10.8% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $159 | $3,885,301M | 80.8% |
| 10-Year Growth | $274 | $6,678,227M | 68.4% |
| 5-Year EBITDA | $188 | $4,586,425M | 83.7% |
| 10-Year EBITDA | $305 | $7,432,860M | 71.6% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $36,223M |
| Discount Rate (WACC) | 10.8% - 8.4% |
| Enterprise Value | $333,855M - $431,499M |
| Net Debt | $(3,173)M |
| Equity Value | $337,028M - $434,672M |
| Outstanding Shares | 24,400M |
| Fair Value | $14 - $18 |
| Selected Fair Value | $15.81 |
| Metric | Value |
|---|---|
| Market Capitalization | $4163128M |
| Enterprise Value | $4159955M |
| Trailing P/E | 48.07 |
| Forward P/E | 36.56 |
| Trailing EV/EBITDA | 18.80 |
| Current Dividend Yield | 2.30% |
| Dividend Growth Rate (5Y) | 20.54% |
| Debt-to-Equity Ratio | 0.00 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $82.15 |
| Discounted Cash Flow (5Y) | 25% | $39.84 |
| Dividend Discount Model (Multi-Stage) | 20% | $28.29 |
| Dividend Discount Model (Stable) | 15% | $9.41 |
| Earnings Power Value | 10% | $1.58 |
| Weighted Average | 100% | $161.27 |
Based on our comprehensive valuation analysis, NVIDIA Corp's intrinsic value is $161.27, which is approximately 5.5% below the current market price of $170.62.
Key investment considerations:
Given these factors, we believe NVIDIA Corp is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.