Valuations are becoming reasonable

jayc
2022-05-29

$NVIDIA Corp(NVDA)$On the valuation side, Nvidia still has a "best-in-class" premium over its smaller competitors. In terms of expected P/E ratio, NVIDIA still has a value of 30x, compared to its rival $AMD(AMD)$with an expected P/E ratio of 22x, while other competitors also have relatively low expected P/E ratios, with $Texas Instruments(TXN)$at 19x, $Intel(INTC)$at 12x.

Currently, the 1-year valuation of NVIDIA stock is significantly below the mean level and is in the region of the lowest 1-year level. Some analysts believe this suggests that if the latest results and earnings guidance can equal or even exceed market expectations, then this would be an excellent time for long-term investors to buy the company's stock at a reasonable valuation.

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Comments

  • Toby_Chua
    2022-05-30
    Toby_Chua
    This week should break $200 resistance
  • Pedestrian A
    2022-05-30
    Pedestrian A
    It seem to be reasonable for one year valuation, but has this taking into consideration of during covid and pre-covid? Especially long term investing was mentioned.
  • Asphen
    2022-05-30
    Asphen
    get at the next pullback bottom within next 2 weeks and then liquidate by year end or Q1 2023 and look for another entry in 2023.
  • MANGATUR0815
    2022-05-30
    MANGATUR0815
    instead of stockpicking by looking at PE only, better choose index fund like VOO [Like]
  • WingCheong
    2022-05-30
    WingCheong
    Guess it's time to accumulate.
  • RedpillBluep
    2022-05-31
    RedpillBluep
    Yup, when the markets go in fear mode be greedy. this saying holds the ultimate truth! I'm really living it first hand and understanding it "real life/time". Such valuable experience is simply unreal.
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