Not financial advice Capital at risk Nvidia stock is very cheap right now!

@tomtalksinvesting

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Why it worked

The video leverages a controversial and attention-grabbing claim about a high-profile stock (Nvidia) being "cheap" despite its large market cap, immediately sparking curiosity and debate. It then provides a specific, data-driven (though potentially debatable) reason for this claim, encouraging viewer engagement through comments.

Summary

The speaker claims Nvidia stock is very cheap right now, citing its current forward PE ratio of 23, which is historically low compared to its 5-year average of 43. They argue that forward earnings guidance is a better valuation method for growth companies like Nvidia.

Structure

1Hook: Nvidia stock is cheap
2Addressing skepticism about market cap
3Introducing self and disclaimer
4Explaining forward PE valuation
5Comparing current PE to historical average
6Discussing growth company valuation and future outlook
7

Original caption

Nvidia’s forward PE is currently at 23x which is historically low for the company based on the last 5 years. I'm continuing to buy Nvidia as I think it is great value For informational purposes only. This is not financial advice. Capital at risk.

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Call to action: comment with opinions

Product placement

Nvidia (company that designs and manufactures graphics processing units (GPUs), application programming interfaces (APIs) for data science and high-performance computing, and system on a chip units for the mobile computing and automotive market) - ACTS, its stock is discussed and analyzed. Removing it would change the video.

Call to action

Let me know your thoughts in the comments. Is Nvidia cheap right now?

On-screen text

Not financial advice Capital at risk Nvidia stock is very cheap right now!

Transcript

Nvidia stock is the cheapest it has been in years. And I know what you're thinking Tom, it's a 5 trillion market cap. What are you on about? But just hear me out. By the way, if you're new here, I'm Tom, an experienced stock market investor, and certainly do not take this video as financial advice. I highly recommend you do your own research. So the reason I think Nvidia right now is because of its forward PE valuation. It's currently trading at a forward PE ratio of 23. If we look at the last five years, yeah, you can see that is a very low on average. It's actually had a forward PE ratio of about 43. My opinion looking at forward earnings guidance is a much better way of valuing a growth company like Nvidia. That's because with growth companies, funnily enough, they're growing very quickly. So actually looking at its current earnings is often quite out of date. But of course, this is just one way of valuing the stock. And it is also worth noting that was the last 5 years average. Maybe the next 5 years average will be a lot lower. Let me know your thoughts in the comments. Is Nvidia cheap right now? I mean, I think it certainly is, and that's why I'm continuing to buy.