NVDA – Market expectations are for Uniform ROA to reach new peaks, but management may have concerns about product, demand, and growth
March 14, 2022
- NVIDIA Corporation (NVDA) currently trades above corporate and historical averages relative to Uniform earnings, with a 35.3x Uniform P/E (Fwd. V/E’).
- At these levels, markets are pricing in expectations for Uniform ROA to reach new peaks, accompanied by 7% Uniform asset growth.
- Meanwhile, analysts expect Uniform ROA to improve to 47% in 2023, accompanied by 44% Uniform asset growth.
- If sustained going forward, these levels would imply a stock price closer to $393, representing significant potential equity upside for the firm.
- However, the firm’s most recent earnings call suggests management may have concerns about product, demand, and growth opportunities.
