NVDA

NVIDIA CORPNasdaq

Three independently researched cases — bear, base, and bull — generated automatically from published financials. Every assumption is justified and cited; the discount rate is computed from researched market inputs.

Market vs intrinsic value as of valuation

Price $202.81
Market cap $4.9T
Bear
$69.30 / share$1.7T IV-65.8%
Base
$113.33 / share$2.8T IV-44.1%
Bull
$164.77 / share$4T IV-18.8%

Compared against the researched share price for NVDA; recalculate the valuation to refresh it.

Base inputs from financials

source period →

Base revenue (TTM)

$253.5B

Diluted shares

24,391,000,000

Net cash

$4.8B

Bear

medium confidence

$69.30

IV / share

-65.8% vs $202.81

Enterprise

$1.7T

Equity

$1.7T

Discount rate

12.1%

Cost of equity

12.1%

Revenue growth35.0% → 20.0% → 12.0% → 8.0% → 5.0%medium

Assumes hyperscaler AI spending plateaus and custom-silicon competition erodes NVIDIA's pricing and unit growth well below the Street's forecast.

Operating margin52.0%medium

Rising competition from AMD and hyperscaler ASICs plus a richer networking/systems mix pressures gross and operating margins downward.

Tax rate19.0%medium

Assumes loss of tax incentives and higher global minimum-tax exposure push the effective rate above guidance.

Reinvestment rate15.0%medium

Slower growth needs less capacity and R&D reinvestment, consistent with a decelerating revenue trajectory.

Terminal growth2.5%high

Long-run growth converges toward nominal GDP, discounted for a maturing, more contested compute market.

Base

medium confidence

$113.33

IV / share

-44.1% vs $202.81

Enterprise

$2.8T

Equity

$2.8T

Discount rate

12.1%

Cost of equity

12.1%

targetOperatingMargin of 0.62 clamped to [-1, 0.6]

Revenue growth55.0% → 32.0% → 22.0% → 16.0% → 12.0%high

Tracks Street consensus of strong but decelerating data-center AI growth as the addressable AI-infrastructure build-out scales past $1T.

Operating margin60.0%high

Assumes NVIDIA sustains most of its pricing power while mix and competition trim margins slightly from peak levels.

Clamped from 62.0% by the guardrail.

Tax rate17.0%high

Uses the company's own full-year effective-tax-rate guidance as the base assumption.

Reinvestment rate25.0%medium

Moderate reinvestment in R&D, supply commitments, and networking/systems supports the base-case growth path.

Terminal growth3.0%high

Reflects durable long-run compute demand converging to roughly nominal GDP growth.

Bull

medium confidence

$164.77

IV / share

-18.8% vs $202.81

Enterprise

$4T

Equity

$4T

Discount rate

12.1%

Cost of equity

12.1%

targetOperatingMargin of 0.66 clamped to [-1, 0.6]

Revenue growth70.0% → 50.0% → 35.0% → 25.0% → 18.0%medium

Assumes sustained AI-infrastructure supercycle plus new demand (sovereign AI, UAE/export easing) keeps growth above the Street for longer.

Operating margin60.0%medium

Continued architectural leadership and software/CUDA lock-in preserve premium pricing and operating leverage.

Clamped from 66.0% by the guardrail.

Tax rate16.0%medium

Assumes continued favorable jurisdictional mix and R&D credits keep the effective rate at the guided floor.

Reinvestment rate35.0%medium

Faster growth requires heavier reinvestment in supply, R&D, and systems to capture the larger AI opportunity.

Terminal growth4.0%medium

Assumes accelerated compute demand supports a terminal rate near the risk-free ceiling but not above it.

Market inputs researched

Risk-free rate

The 10-year Treasury yield is the standard proxy for the long-term risk-free rate in a USD DCF.

4.6%
high
Beta

A ~1.7 levered beta balances NVDA's high historical volatility against mega-cap-driven mean reversion in forward beta.

1.7
medium
Equity risk premium

Uses the forward-looking implied ERP preferred for valuation over historical averages.

4.5%
high
Share price

Most recent market close for comparison against intrinsic value per share.

202.81
high
Cost of debt

Reflects NVIDIA's AA/high-grade credit and current-market coupons on its recent long-dated debt.

5.0%
high
Reasoned byClaude Code
Why the model matters →

Generated 7/19/2026, 3:16:25 AM · pipeline v1.0.0

For research and educational use only. Valuation estimates are not financial advice.