Finding value implies that we evaluate sky-high assumptions. Below we provide a short video segment from the recent Value Profit Blueprint webinar.

This training analyzes NVIDIA (NVDA) using our optimistic reverse discounted cash flow model based on future growth assumptions.

  • We quantified Nvidia’s future growth expectations down to the % – they imply something bigger than Mexico’s economy.
  • If Nvidia meets highly optimistic cash flow projections, revenue could reach $1.5 trillion in 15 years. But there’s a catch.

Explosive 28% annual growth needed for over a decade to rationalize Nvidia’s valuation…really?

  • Nvidia’s margins would have to smash records for 15 straight years to justify today’s price as per our model.
  • Our Nvidia model exposes sky-high assumptions. Check if your conviction levels match the growth priced in.
  • At $500/share, Nvidia’s potential seems limitless. But investors still need to separate plausible from fantasy.
Watch the segment

This article was originally published on February 22, 2024.

Disclosure: David Trainer, Kyle Guske II, Italo Mendonca, and Hakan Salt receive no compensation to write about any specific stock, style, or theme.

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