By Chris Lange
Publication Date: 2026-11-06 00:09:00
Jim Cramer keeps telling investors to buy while Nvidia sinks, and the math behind his bold valuation claim might surprise skeptics. But several red flags explain why Wall Street refuses to listen, and one upcoming report could settle the fight.
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Jim Cramer told viewers of CNBC’s Squawk on the Street on November 5, 2026, that NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) is on sale. “This is the cheapest multiple on Nvidia in about a decade. We’re at 16.5 now,” Jim Cramer said. He followed with “I do think that, like I said, we’re all writing off Nvidia, but it is the cheapest that it’s been. We’ve got to focus on that.”
He said this as the stock fell. NVIDIA fell 6.94% in today’s session to $186.24. That leaves it down 22.04% over the past month and up only 0.09% for 2026.
Testing Cramer’s 16.5 Multiple Against Wall Street Estimates
Analysts expect average EPS of $9.3124 for the fiscal year ending January 2027. At today’s price, that works out to about 20x. For fiscal 2028, the average estimate is $15.9146, which places the stock near 12x. A next-12-months multiple falls between those two figures, so Cramer’s number holds up. On trailing diluted EPS of $8.09, the multiple is about 23x.
History backs…
