Is NVIDIA Corp. overvalued or undervalued?

As of 27 August 2025, NVIDIA Corp. has moved from fair to attractive in its valuation grade. The company appears to be undervalued based on its strong performance metrics, including a P/E ratio of 45, an EV to EBITDA of 38.68, and a remarkable ROE of 90.70%. In comparison to peers, NVIDIA's P/E ratio is lower than Broadcom Inc.'s 82.00, but higher than Micron Technology Inc.'s 25.58, indicating a competitive position within the industry.
Despite a recent dip in stock performance over the past week and month, NVIDIA has significantly outperformed the S&P 500 year-to-date with a return of 31.24% compared to the index's 12.22%, and a staggering 1235.35% return over three years versus the S&P 500's 70.41%. This strong historical performance reinforces the view that NVIDIA is currently undervalued relative to its growth potential and market position.