This is 45.3% higher than its $576 billion market value today. For example, assuming the market values Nvidia with a 1.5% FCF yield, its market value will be $847.33 billion (i.e., $12.56b/0.15). That is over 54.5% from the $8.1 billion in FCF last year.īut it also could push the stock market value higher. Applying a 36% margin to that figure means FCF could reach $12.56 billion. The point is if that same margin keeps up for the year ending 2023, it could show huge amounts of FCF.Īnalysts now estimate that revenue will rise 30% to $34.9 billion. This works out to a FCF margin of 30.2% on its $26.9 billion in revenue.īut in the fourth quarter its FCF margin rose to over 36% when it produced $2.76 billion in FCF on $7.64 billion in revenue. 30, 2022, the company generated over $8.13 billion in FCF. That assumes that its growth rate keeps at its blistering pace as in the past.įor example, for the fiscal year that ended Jan. That is quite a change from last year when it rose 125.2%.Īssuming Nvidia can make the same level of profits and free cash flow (FCF) as before, the stock could find its way back into positive territory. So far, year-to-date (YTD) the stock is down 21.4% as of April 8 at $231.26, down from $294.11 at the end of 2021. If its YoY growth keeps up at that pace, NVDA stock could be in for another great year. Moreover, on a year-over-year (YoY) basis, that will be 43.1% higher than the $5.66 billion in revenue last year. That works out to a consecutive compound growth rate of 26.1%. Moreover, it expects its first quarter 2022 revenue, which will come out on May 25, will be at least $8.1 billion up from $7.66 billion this past quarter. ![]() That could help NVDA stock rise, assuming the company’s growth stays on track. ![]() That will allow shareholders to not be diluted by the extra shares for ARM. The chip design company decided in February to cancel its dilutive merger with ARM Ltd from Softbank (OTCMKTS: SFTBY). ![]() Investors should be happy with Nvidia (NASDAQ: NVDA).
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