My Nvidia Valuation | Alpha Quadrant by The Fifth Person

Questions › Category: Valuation Quadrant › My Nvidia Valuation

Mei Ying Lee asked 6 months ago

Hi Victor, I attended the live training webinar for Valuation on 20 Jun 2024. During the webinar, you shared your valuation for Nvidia with the following figures: P/E average: 57.34 EPS (TTM): 1.71 Intrinsic Value: 98.05 I also did valuation for Nvidia (I not buying now, just curious and want to practice :P). But somehow my P/E average is different from yours (I got 83.1??). As a result, my intrinsic value is also different from yours. I am not sure where I went wrong. My valuation calculation workings can be found here: https://docs.google.com/spreadsheets/d/1rmXufVP4800RA81DEJpG2lg2YafVl3se/edit?usp=sharing&ouid=100502376646476180291&rtpof=true&sd=true If it's not too troublesome for you, do you mind taking a look at my spreadsheet to see where went wrong? Thanks!

2 Answers

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Victor Chng Staff answered 6 months ago

Hi Mei Ying,
Let me look through your excel sheet and get back to you.

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Victor Chng Staff answered 6 months ago

Hi Mei Ying,

I've reviewed your data. Your figures are all correct. Good job and keep it up.

The difference is that I am using TTM EPS while you are using historical EPS. Your side has a higher PE because the NVDA share price shot up quickly, while the historical EPS hasn't caught up yet. In most cases, the difference is slight, but the NVDA case is unique.

To resolve this issue, you just need to use median PE instead of average PE.

Mei Ying Lee replied 5 months ago

Hi Victor,

I see, thank you for the explanation!

Victor Chng Staff replied 5 months ago

Welcome Mei Ying :)