Hook
More breakout videos from this creator.
HOLD ON, I KNOW WHAT YOU'RE THINKING. HAVE YOU LOST THE PLOT? NVIDIA STOCK IS CHEAP? IT'S NEARLY AT ALL TIME HIGHS IT HAS A MARKET CAP OF OVER $5 TRILLION. BUT YES, MATHEMATICALLY NVIDIA STOCK WE ACTUALLY HAVEN'T SEEN THIS VALUATION FOR NEARLY THREE YEARS. NVIDIA'S SHARE PRICE DOESN'T HELP YOU VALUE A STOCK. YOU'VE GOT TO USE OTHER METRICS. ONE OF MY FAVOURITE WAYS TO VALUE STOCK IS USING FORWARD P/E. YEAH, IT'S LOOKING AT FORWARD EARNINGS. THAT'S BECAUSE NVIDIA, LIKE A LOT OF OTHER GROWTH IS GROWING NVIDIA FOR THIS CALENDAR YEAR 2026 IS EXPECTED TO GROW EARNINGS BY 90%. NVIDIA'S FORWARD PE IS CURRENTLY AROUND ABOUT 23. WE HAVEN'T SEEN THAT VALUATION SINCE 2023. AND BEFORE THAT YOU WAY BACK TO 2016 I MEAN PEG RATIO FOR NVIDIA IS SHOWING EXACTLY THE SAME. THAT'S LOOKING AT EARNINGS GROWTH. A PEG RATIO OF 1 IS ABOUT FAIR. NVIDIA'S PEG RATIO IS 0.55. REASON THIS IS HAPPENING IS CAUSE NVIDIA'S SHARE PRICE IS UP ABOUT 30% OVER BUT OBVIOUSLY IT'S EARNINGS GROWTH IS A LOT HIGHER. YOU'VE GOT A SITUATION WHERE SHARE PRICE ISN'T KEEPING UP WITH EARNINGS GROWTH. THAT'S WHY I'M MORE THAN HAPPY TO BUY STOCK AT THE MOMENT. BY THE WAY, PLEASE DO NOT TAKE THIS AS FINANCIAL ADVICE. DO YOUR OWN RESEARCH.