Latest Ratios: P/E Ratio 46.7x · EV/EBITDA 41.6x · ROE 101.5%. (1999–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $5.54T | $4.60T | $3.54T | $1.52T | $510.4B | $579.0B | $326.3B | $154.7B | $100.0B | $153.7B | $72.4B |
| Enterprise Value | $5.54T | $4.60T | $3.54T | $1.53T | $519.1B | $588.8B | $333.2B | $146.5B | $101.2B | $151.7B | $73.5B |
| P/E Ratio → | 46.71 | 38.30 | 48.51 | 51.29 | 119.76 | 60.11 | 76.41 | 56.91 | 23.53 | 50.67 | 43.59 |
| P/S Ratio | 25.67 | 21.30 | 27.11 | 24.98 | 18.92 | 21.51 | 19.57 | 14.17 | 8.54 | 15.82 | 10.48 |
| P/B Ratio | 35.67 | 29.25 | 44.59 | 35.42 | 23.10 | 21.76 | 19.32 | 12.68 | 10.70 | 20.57 | 12.57 |
| P/FCF | 57.34 | 47.59 | 58.13 | 56.33 | 134.04 | 71.20 | 69.52 | 36.22 | 31.82 | 52.84 | 48.41 |
| P/OCF | 53.97 | 44.79 | 55.20 | 54.19 | 90.48 | 63.57 | 56.05 | 32.50 | 26.72 | 43.89 | 43.32 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 21.31 | 27.12 | 25.05 | 19.24 | 21.88 | 19.98 | 13.42 | 8.64 | 15.62 | 10.63 |
| EV / EBITDA | 41.61 | 34.54 | 42.48 | 44.25 | 90.01 | 52.50 | 59.18 | 45.40 | 24.89 | 44.50 | 34.64 |
| EV / EBIT | 42.52 | 32.47 | 42.00 | 44.78 | 116.83 | 57.86 | 72.54 | 48.48 | 25.60 | 46.58 | 37.43 |
| EV / FCF | — | 47.60 | 58.16 | 56.47 | 136.31 | 72.41 | 70.98 | 34.29 | 32.20 | 52.15 | 49.12 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 71.1% | 71.1% | 75.0% | 72.7% | 56.9% | 64.9% | 62.3% | 62.0% | 61.2% | 59.9% | 58.8% |
| Operating Margin | 60.4% | 60.4% | 62.4% | 54.1% | 15.7% | 37.3% | 27.2% | 26.1% | 32.5% | 33.0% | 28.0% |
| Net Profit Margin | 55.6% | 55.6% | 55.8% | 48.8% | 16.2% | 36.2% | 26.0% | 25.6% | 35.3% | 31.4% | 24.1% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 101.5% | 101.5% | 119.2% | 91.5% | 17.9% | 44.8% | 29.8% | 26.0% | 49.3% | 46.1% | 32.6% |
| ROA | 75.4% | 75.4% | 82.2% | 55.7% | 10.2% | 26.7% | 18.8% | 18.3% | 33.8% | 28.9% | 19.4% |
| ROIC | 81.8% | 81.8% | 95.6% | 63.8% | 9.4% | 25.0% | 24.5% | 29.4% | 35.6% | 39.2% | 23.8% |
| ROCE | 97.2% | 97.2% | 109.6% | 73.5% | 11.3% | 31.0% | 22.4% | 20.7% | 34.5% | 35.4% | 29.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.07 | 0.07 | 0.13 | 0.26 | 0.54 | 0.44 | 0.46 | 0.22 | 0.21 | 0.27 | 0.49 |
| Debt / EBITDA | 0.09 | 0.09 | 0.12 | 0.32 | 2.09 | 1.05 | 1.37 | 0.82 | 0.49 | 0.59 | 1.33 |
| Net Debt / Equity | — | 0.01 | 0.02 | 0.09 | 0.39 | 0.37 | 0.41 | -0.68 | 0.13 | -0.27 | 0.18 |
| Net Debt / EBITDA | 0.01 | 0.01 | 0.02 | 0.11 | 1.50 | 0.88 | 1.22 | -2.56 | 0.30 | -0.59 | 0.50 |
| Debt / FCF | — | 0.01 | 0.03 | 0.14 | 2.27 | 1.21 | 1.46 | -1.93 | 0.38 | -0.69 | 0.70 |
| Interest Coverage | 547.14 | 547.14 | 341.19 | 132.59 | 16.96 | 43.12 | 24.96 | 58.12 | 68.17 | 53.39 | 33.84 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.91 | 3.91 | 4.44 | 4.17 | 3.52 | 6.65 | 4.09 | 7.67 | 7.94 | 8.03 | 4.69 |
| Quick Ratio | 3.24 | 3.24 | 3.88 | 3.67 | 2.73 | 6.05 | 3.63 | 7.13 | 6.76 | 7.34 | 4.26 |
| Cash Ratio | 1.94 | 1.94 | 2.39 | 2.44 | 2.03 | 4.89 | 2.95 | 6.11 | 5.58 | 6.16 | 3.74 |
| Asset Turnover | — | 1.04 | 1.17 | 0.93 | 0.65 | 0.61 | 0.58 | 0.63 | 0.88 | 0.86 | 0.70 |
| Inventory Turnover | 2.92 | 2.92 | 3.24 | 3.15 | 2.25 | 3.62 | 3.44 | 4.24 | 2.89 | 4.89 | 3.59 |
| Days Sales Outstanding | — | 65.02 | 64.51 | 59.91 | 51.79 | 63.06 | 53.17 | 55.40 | 44.36 | 47.53 | 43.63 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% | 0.1% | 0.1% | 0.3% | 0.4% | 0.2% | 0.4% |
| Payout Ratio | 0.8% | 0.8% | 1.1% | 1.3% | 9.1% | 4.1% | 9.1% | 13.9% | 9.0% | 11.2% | 15.7% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.1% | 2.6% | 2.1% | 1.9% | 0.8% | 1.7% | 1.3% | 1.8% | 4.3% | 2.0% | 2.3% |
| FCF Yield | 1.7% | 2.1% | 1.7% | 1.8% | 0.7% | 1.4% | 1.4% | 2.8% | 3.1% | 1.9% | 2.1% |
| Buyback Yield | 0.7% | 0.9% | 1.0% | 0.6% | 2.0% | 0.0% | 0.0% | 0.0% | 1.6% | 0.6% | 1.0% |
| Total Shareholder Yield | 0.7% | 0.9% | 1.0% | 0.7% | 2.0% | 0.1% | 0.1% | 0.3% | 1.9% | 0.8% | 1.4% |
| Shares Outstanding | — | $24.5B | $24.8B | $24.9B | $25.1B | $25.4B | $25.1B | $24.7B | $25.0B | $25.3B | $26.0B |
Includes 30+ ratios · 28 years · Updated daily
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Quick answers to the most common questions about buying NVDA stock.
NVIDIA Corporation's current P/E ratio is 46.7x. The historical average is 45.4x. This places it at the 58th percentile of its historical range.
NVIDIA Corporation's current EV/EBITDA is 41.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 32.5x.
NVIDIA Corporation's return on equity (ROE) is 101.5%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 30.5%.
Based on historical data, NVIDIA Corporation is trading at a P/E of 46.7x. This is at the 58th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
NVIDIA Corporation's current dividend yield is 0.02% with a payout ratio of 0.8%.
NVIDIA Corporation has 71.1% gross margin and 60.4% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
NVIDIA Corporation's Debt/EBITDA ratio is 0.1x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Working Capital Volatility
Metrics are mathematically derived from official filings.
Premium Valuation Reflects AI Utility Status
NVIDIA's forward P/E of 24.11 and PEG of 0.46, as reported in current market data, suggest the market is pricing the company not as a cyclical chipmaker but as a foundational utility for the AI era, with growth expectations that appear to outpace its premium multiple.
The valuation multiples, particularly the forward P/E of 24.11, are significantly compressed relative to the trailing P/E of 44.40, indicating the market expects earnings to grow at a pace that justifies the current price. This is further supported by the PEG ratio of 0.46, which is well below the typical growth threshold of 1.0, implying the stock may be undervalued relative to its projected earnings growth. Compared to peers like AMD (PEG 34.01) and Broadcom (PEG 1.55), NVIDIA's valuation appears to be anchored in its dominant market position and the durability of its CUDA ecosystem, rather than traditional semiconductor cyclicality.
Software-Like Margins on Hardware Scale
NVIDIA's 75.0% gross margin in 2027Q2, as per recent financial statements, is a structural anomaly in the semiconductor industry, reflecting a value proposition that transcends commodity silicon and suggests extraordinary pricing power rooted in its software-defined platform.
The gross margin has stabilized at an extraordinary 75.0% over the last several quarters, a level typically associated with pure software companies, not hardware manufacturers. This indicates that the company's cost of goods sold, dominated by variable payments to foundries, is being managed with extreme efficiency relative to the value delivered. The operating margin of 66.2% further demonstrates that R&D and SG&A expenses are being leveraged across a rapidly expanding revenue base, creating significant operating leverage that is unlikely to be replicated by competitors without a comparable software moat.
Compounding Returns on Invested Capital
NVIDIA's ROIC of 21.7% in 2027Q2, based on reported figures, represents a slight moderation from its peak but remains exceptionally high, indicating the company is effectively compounding returns on its invested capital despite a rapidly expanding asset base.
The ROIC trend shows a slight decline from a peak of 25.9% in 2025Q3 to 21.7% in 2027Q2, which may reflect the initial capital intensity of scaling production to meet AI demand. However, the absolute level remains far above the cost of capital, suggesting the company is creating substantial economic value. The high ROIC is driven by the combination of exceptional net margins (62.0%) and a moderate asset turnover (0.33), indicating that profitability, not just efficiency, is the primary driver of returns. This pattern is consistent with a company that has successfully transitioned from a component vendor to a systems provider.
Working Capital Strain Amid Hyper-Growth
The cash conversion cycle expanded to 104 days in 2027Q2, up from 67 days in 2026Q1, as reported in financial statements, indicating that the company's rapid revenue growth is being accompanied by a significant and potentially risky buildup in working capital.
The expansion of the CCC is primarily driven by a sharp increase in Days Inventory Outstanding (DIO), which rose from 56 days to 108 days over the same period. This suggests that inventory is accumulating faster than sales, which could be a strategic buffer against supply chain constraints or a potential risk if demand for AI accelerators cools. The Days Sales Outstanding (DSO) has also increased, indicating that the company may be extending more favorable credit terms to its large hyperscaler customers. This working capital dynamic is a key area to monitor, as it represents a significant use of cash that could pressure free cash flow if not managed carefully.
Minimal Leverage with Strategic Debt Uptick
NVIDIA's debt-to-equity ratio of 0.17 in 2027Q2, as per recent filings, remains exceptionally low, but the increase from 0.07% in 2027Q1 suggests a strategic shift in capital allocation that warrants monitoring for potential covenant or refinancing risk.
The company's leverage profile is overwhelmingly conservative, with a debt-to-equity ratio that is a fraction of its peers like Broadcom (0.80) and Texas Instruments (0.95). The interest coverage ratio of 315.01 indicates that debt service is negligible relative to operating income. However, the recent increase in total debt to $38.9B from a low of $10.2B, as noted in prior balance sheet analysis, suggests management is opportunistically accessing debt markets, possibly to fund share repurchases or strategic investments. This is not a sign of financial stress but rather a tactical decision that should be evaluated in the context of the company's overall capital allocation strategy.
The Misapplied Ratio: Price-to-Sales
The price-to-sales ratio of 24.40 is the most commonly misapplied metric for NVIDIA, as it obscures the company's extraordinary profitability and the structural shift in its business model toward high-margin, software-like returns.
Investors often use P/S to compare semiconductor companies, but this is misleading for NVIDIA because its gross margin of 75.0% is more than double that of many peers. A high P/S ratio for a low-margin commodity chipmaker signals overvaluation, but for NVIDIA, it reflects a fundamentally different earning power. The more appropriate metric is EV/EBITDA or P/E, which account for the company's exceptional profitability. Using P/S alone would incorrectly suggest NVIDIA is overpriced relative to its revenue, when in fact its earnings and cash flow generation are on a completely different trajectory than the broader semiconductor industry.