Something like 20 is typical for a mature company. Tech companies have, in the past, often had higher ratios, but that’s based on their expectation to grow a lot rapidly, and expecting NVidia to dramatically grow from their current — already very high — valuation is asking a lot.
If NVidia were a small tech company that was doing well and clearly had a lot of market to expand into rapidly, that would be one thing.
I think that in general, the market has been pretty good to NVidia. Their share price is up 31.22% since the start of the year. 1,247% over the past five years.
I mean, they did make a lot of money, but they also had an extremely high valuation.
https://www.macrotrends.net/stocks/charts/NVDA/nvidia/pe-ratio
Something like 20 is typical for a mature company. Tech companies have, in the past, often had higher ratios, but that’s based on their expectation to grow a lot rapidly, and expecting NVidia to dramatically grow from their current — already very high — valuation is asking a lot.
If NVidia were a small tech company that was doing well and clearly had a lot of market to expand into rapidly, that would be one thing.
I think that in general, the market has been pretty good to NVidia. Their share price is up 31.22% since the start of the year. 1,247% over the past five years.
Ha, you think that’s high? Don’t look at PLTR’s P/E, then.