By Trefis Team
Publication Date: 2026-10-25 17:17:00
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Many investors evaluate NVIDIA (NVDA) the way they evaluate any stock: the lower the price-to-earnings multiple, the cheaper the stock. That multiple, what investors pay for each dollar of profit, stood at 101.3 for Nvidia in mid-2023. Today it is 26.5. Does a multiple that has fallen this far mean you are getting a cheaper stock?
Nvidia Stock Rose While Its Multiple Fell
Nvidia’s share price rose 398.7% from mid-2023 to October 23, 2026, excluding dividends. A single share now costs far more than it did, while each dollar of profit behind it costs far less. Over the same three years, the price went up and the multiple went down.
How Much Has Nvidia’s Profit Grown?
Nvidia’s profit over the latest twelve months reached $193 billion, compared with $10.3 billion in the twelve months to mid-2023. That is 18.7 times as much profit in three years. The table below shows how profit and the multiple moved year by year.
| Twelve months to | Net income | Change in a year | Price-to-earnings |
|---|---|---|---|
| Aug 1, 2021 | $7.08 billion | +108.9% | 70.4 |
| Jul 31, 2022 | $7.74 billion | +9.4% | 48.9 |
| Jul 30, 2023 | $10.3 billion | +33.4% | 101.3 |
| Jul 28, 2024 | $53 billion | +413.4% | 57.3 |
| Jul 27, 2025 | $86.6 billion | +63.4% | 44.5 |
| Jul 26, 2026 | $193 billion | +122.7% | 25.1 |
| Jul 26, 2026 (at the share price of Oct 23, 2026) | $193 billion | +122.7% | 26.5 |
Net income is the reported total for the twelve months ending on the date…
