Is NVIDIA Corp. overvalued or undervalued?

As of 18 September 2024, NVIDIA Corp. has moved from an expensive to a fair valuation grade. The company is currently fairly valued, with a P/E ratio of 45, a Price to Book Value of 41.24, and an EV to EBITDA of 38.68. In comparison to its peers, NVIDIA's P/E ratio is lower than Broadcom Inc. at 81.42 and Advanced Micro Devices, Inc. at 88.68, while QUALCOMM, Inc. stands out as very attractive with a P/E of 15.17.
NVIDIA's impressive ROCE of 221.46% and ROE of 90.70% indicate strong profitability, supporting its fair valuation status. Despite a recent slight decline in stock price compared to the S&P 500, NVIDIA has outperformed the index over the past year with a return of 13.91% versus the S&P 500's 10.26%. Overall, the analysis suggests that NVIDIA is fairly valued in the current market context.