Nvidia Stock Won't Be Overvalued by 2028: My Case for Buying NVDA Today
Nvidia's profits are growing too fast for it to be overvalued.
Overview
Nvidia (NASDAQ: NVDA) has jumped 15% since July 29, but it's not overvalued.
It's true that the stock is more expensive than the S&P 500, trading at a trailing price-to-earnings ratio of 37.5 based on adjusted earnings per share, but investors have to consider the company's growth rate as well. Factoring that in, Nvidia is on fire.
Details
The company reported 85% revenue growth in the first quarter, and revenue growth is expected to accelerate to 97% in the second quarter as it launches its new Rubin platform.
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.