Nvidia is now a $1T company

Re:Nvidia is now a $1T company by adam_arthur on Tuesday May 30, 2023 @10:59AM (#36125644)

Price to sales is a more telling comparison here. P/E can appear arbitrarily high/low depending on what the company is optimizing for. A realistic "terminal margin" is pretty similar between like-kind businesses, so you can somewhat assume what it will be in the long run and apply that to projected revenues.

Price to Sales: (TTM revenues)

NVDA: 37x

AMD: 8x

TSLA: 8x

TSM: 7x

AAPL: 7x

GOOG: 6x

QCOM: 3x

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Re:Nvidia is now a $1T company by JumpinJack_Cash on Tuesday May 30, 2023 @11:47AM (#36126229)

Price to FCF (Free cash flow) is even better.

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Re:Nvidia is now a $1T company by adam_arthur on Tuesday May 30, 2023 @12:01PM (#36126444)

FCF is not great for tech companies because SBC (stock based compensation), of which these companies do a huge amount of, tends to be backed out.

When a tech employee receives shares, it dilutes other shareholders. This is not "free" money to be ignored just because it doesn't take cash to pay it

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Re:Nvidia is now a $1T company by aeyes on Tuesday May 30, 2023 @11:50AM (#36126287)

Price to free cash flow after deducting stock based compensation is even better

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Re:Nvidia is now a $1T company by josu on Tuesday May 30, 2023 @11:54AM (#36126347)

I just look at the market cap.

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