Is NVDA Stock Undervalued?

A comprehensive valuation analysis of Nvidia Corp (NVDA) examining current multiples, intrinsic value, and comparing to analyst expectations.

Updated February 28, 2026•8 min read•View Full Analysis

Valuation Verdict

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Potentially Undervalued

2529679726799.6% upside potential

Based on our analysis, Nvidia Corp appears to be potentially undervalued at the current price of $189.82. Our fair value estimate of $4801838057600.80 suggests upside potential of approximately 2529679726799.6%.

Current Valuation Metrics

Valuation ratios help us understand how the market is pricing NVDA relative to its fundamentals. Let's examine the key multiples investors are paying today.

P/E Ratio

37.98

High

P/B Ratio

28.99

High

P/S Ratio

21.12

High

EV/EBITDA

37.31

High

Understanding the Metrics

P/E Ratio: At 37.98x earnings, NVDA is trading above the typical market average of 15-20x.
P/B Ratio: A P/B of 28.99 means investors pay $28.99 for every $1 of book value.
P/S Ratio: The price-to-sales ratio of 21.12 indicates how much investors value each dollar of revenue.
EV/EBITDA: This ratio of 37.31 helps compare NVDA to peers while accounting for debt.

Fair Value Estimate

Using a discounted cash flow (DCF) model, we estimate the intrinsic value of Nvidia Corp stock. This fundamental analysis looks at the company's ability to generate future cash flows and discounts them back to today's value.

Current Price

$189.82

Fair Value Estimate

$4801838057600.80

Implied Return+2529679726799.6%

Our DCF model suggests NVDA may be undervalued by approximately 2529679726799.6%. This implies the market may be pricing in more pessimistic growth expectations than our base case scenario.

Historical Valuation Trends

Looking at NVDA's valuation history helps us understand whether the current multiples are typical or unusual for this company.

Current P/E Ratio

37.98

5-Year Average P/E

61.97

Currently below average

The current P/E ratio is 38.7% below the 5-year average, suggesting NVDA may be trading at a discount to its historical valuation. This could present a buying opportunity if fundamentals remain strong.

Analyst Price Targets

Wall Street analysts provide price targets based on their fundamental research and models. Let's see how the consensus view compares to the current price.

Current Price

$189.82

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Analyst Target

$262.51

Implied Upside38.3%

The consensus analyst price target of $262.51 suggests 38.3% upside potential from current levels. Analysts appear optimistic about the stock's prospects.

Investment Conclusion

Bottom Line

Based on our comprehensive valuation analysis, Nvidia Corp (NVDA) appears to be undervalued at $189.82. With a fair value estimate of $4801838057600.80, the stock offers potential upside for long-term investors willing to wait for the market to recognize its intrinsic value.

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Always conduct your own research and consult with a financial advisor before making investment decisions. Past performance does not guarantee future results.