Nvidia Stock Market Value
NVDA Stock | USD 864.02 13.55 1.54% |
Symbol | NVIDIA |
NVIDIA Price To Book Ratio
Is NVIDIA's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of NVIDIA. If investors know NVIDIA will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about NVIDIA listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 7.613 | Dividend Share 0.16 | Earnings Share 11.93 | Revenue Per Share 24.675 | Quarterly Revenue Growth 2.653 |
The market value of NVIDIA is measured differently than its book value, which is the value of NVIDIA that is recorded on the company's balance sheet. Investors also form their own opinion of NVIDIA's value that differs from its market value or its book value, called intrinsic value, which is NVIDIA's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because NVIDIA's market value can be influenced by many factors that don't directly affect NVIDIA's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between NVIDIA's value and its price as these two are different measures arrived at by different means. Investors typically determine if NVIDIA is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, NVIDIA's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
NVIDIA 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to NVIDIA's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of NVIDIA.
03/02/2024 |
| 05/01/2024 |
If you would invest 0.00 in NVIDIA on March 2, 2024 and sell it all today you would earn a total of 0.00 from holding NVIDIA or generate 0.0% return on investment in NVIDIA over 60 days. NVIDIA is related to or competes with Sunrun, and Sunnova Energy. NVIDIA Corporation provides graphics, and compute and networking solutions in the United States, Taiwan, China, and inte... More
NVIDIA Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure NVIDIA's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess NVIDIA upside and downside potential and time the market with a certain degree of confidence.
Downside Deviation | 3.09 | |||
Information Ratio | 0.1481 | |||
Maximum Drawdown | 26.4 | |||
Value At Risk | (3.87) | |||
Potential Upside | 4.97 |
NVIDIA Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for NVIDIA's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as NVIDIA's standard deviation. In reality, there are many statistical measures that can use NVIDIA historical prices to predict the future NVIDIA's volatility.Risk Adjusted Performance | 0.1138 | |||
Jensen Alpha | 0.4892 | |||
Total Risk Alpha | 0.3038 | |||
Sortino Ratio | 0.1715 | |||
Treynor Ratio | 0.3162 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of NVIDIA's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
NVIDIA Backtested Returns
NVIDIA appears to be very steady, given 3 months investment horizon. NVIDIA has Sharpe Ratio of 0.16, which conveys that the firm had a 0.16% return per unit of volatility over the last 3 months. By inspecting NVIDIA's technical indicators, you can evaluate if the expected return of 0.57% is justified by implied risk. Please exercise NVIDIA's risk adjusted performance of 0.1138, and Mean Deviation of 2.54 to check out if our risk estimates are consistent with your expectations. On a scale of 0 to 100, NVIDIA holds a performance score of 12. The company secures a Beta (Market Risk) of 1.83, which conveys a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, NVIDIA will likely underperform. Please check NVIDIA's jensen alpha, potential upside, accumulation distribution, as well as the relationship between the treynor ratio and expected short fall , to make a quick decision on whether NVIDIA's current price movements will revert.
Auto-correlation | -0.77 |
Almost perfect reverse predictability
NVIDIA has almost perfect reverse predictability. Overlapping area represents the amount of predictability between NVIDIA time series from 2nd of March 2024 to 1st of April 2024 and 1st of April 2024 to 1st of May 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of NVIDIA price movement. The serial correlation of -0.77 indicates that around 77.0% of current NVIDIA price fluctuation can be explain by its past prices.
Correlation Coefficient | -0.77 | |
Spearman Rank Test | -0.45 | |
Residual Average | 0.0 | |
Price Variance | 1408.49 |
NVIDIA lagged returns against current returns
Autocorrelation, which is NVIDIA stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting NVIDIA's stock expected returns. We can calculate the autocorrelation of NVIDIA returns to help us make a trade decision. For example, suppose you find that NVIDIA has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
Timeline |
NVIDIA regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If NVIDIA stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if NVIDIA stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in NVIDIA stock over time.
Current vs Lagged Prices |
Timeline |
NVIDIA Lagged Returns
When evaluating NVIDIA's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of NVIDIA stock have on its future price. NVIDIA autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, NVIDIA autocorrelation shows the relationship between NVIDIA stock current value and its past values and can show if there is a momentum factor associated with investing in NVIDIA.
Regressed Prices |
Timeline |
NVIDIA Investors Sentiment
The influence of NVIDIA's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in NVIDIA. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to NVIDIA's public news can be used to forecast risks associated with an investment in NVIDIA. The trend in average sentiment can be used to explain how an investor holding NVIDIA can time the market purely based on public headlines and social activities around NVIDIA. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
NVIDIA's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for NVIDIA's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average NVIDIA's news discussions. The higher the estimated score, the more favorable is the investor's outlook on NVIDIA.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards NVIDIA in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, NVIDIA's short interest history, or implied volatility extrapolated from NVIDIA options trading.
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Try AI Portfolio ArchitectCheck out NVIDIA Correlation, NVIDIA Volatility and NVIDIA Alpha and Beta module to complement your research on NVIDIA. For information on how to trade NVIDIA Stock refer to our How to Trade NVIDIA Stock guide.Note that the NVIDIA information on this page should be used as a complementary analysis to other NVIDIA's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Complementary Tools for NVIDIA Stock analysis
When running NVIDIA's price analysis, check to measure NVIDIA's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy NVIDIA is operating at the current time. Most of NVIDIA's value examination focuses on studying past and present price action to predict the probability of NVIDIA's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move NVIDIA's price. Additionally, you may evaluate how the addition of NVIDIA to your portfolios can decrease your overall portfolio volatility.
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