Is NVIDIA Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for NVIDIA Corp. has moved from very expensive to attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued based on its strong performance metrics. Key valuation ratios include a P/E ratio of 45, an EV to EBITDA of 38.68, and a Price to Book Value of 41.24, which suggest that while the stock is priced at a premium, it may still offer value relative to its growth prospects. In comparison to its peers, NVIDIA's P/E ratio of 47.72 is lower than Broadcom Inc.'s 82.00 and Advanced Micro Devices' 87.09, indicating that it may be a more attractive investment within the sector. Additionally, its EV to EBITDA ratio is more favorable than Broadcom's 51.31, further supporting the notion of relative undervaluation. Over the past year, NVIDIA has outperformed the S&P 500, returning 33.81% compared to the index's 14.08%, reinforcing the attractiveness of the stock in the current market environment.