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NVIDIA's DCF valuation model suggests the stock is around 13.9% overvalued at its recent price of US$211.50, based on projected free cash flow reaching around $417.5b by 2031.

Yahoo Finance AIMay 10, 20261 min read
NVIDIA's DCF valuation model suggests the stock is around 13.9% overvalued at its recent price of US$211.50, based on projected free cash flow reaching around $417.5b by 2031.

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3 Key Points

  1. Simply Wall St's Discounted Cash Flow (DCF) model—which projects future cash flows and discounts them to estimate intrinsic value—arrives at an estimated fair value of about $185.62 per share for NVIDIA, compared to the recent closing price of US$211.50.

  2. The model uses latest twelve month free cash flow of about $97.2b and analyst projections suggesting free cash flow reaching around $417.5b by 2031, with interim projections feeding into a 10-year calculation period.

  3. On Simply Wall St's valuation checks, NVIDIA has a value score of 3 out of 6; the DCF analysis implies the current market price sits above the cash flow based estimate, marking the stock as overvalued.

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