By Simply Wall St
Publication Date: 2026-02-18 04:37:00
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If you are wondering whether NVIDIA’s share price still makes sense after its huge run in recent years, the key question now is how that price compares with the value of the business.
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The stock recently closed at US$184.97, with a 1.9% decline over 7 days, a 0.7% decline over 30 days, a 2.1% decline year to date and a 32.7% gain over the past year. The 3-year and 5-year returns are very large at roughly 8x and over 12x respectively.
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Recent coverage has continued to focus on NVIDIA’s central role in graphics processing and AI-related hardware, along with its place in the broader semiconductor sector. This context helps frame why the share price has seen periods of strong enthusiasm followed by shorter-term pullbacks like the recent moves.
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Our valuation checks give NVIDIA a 2 out of 6 valuation score, which means some measures flag potential undervaluation while others do not. Next we will compare several common valuation approaches before finishing with a more holistic way to think about what the stock might be worth.
NVIDIA scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.
A Discounted Cash Flow, or DCF, model estimates what a company might be worth by projecting its future cash flows and then discounting those back to today’s value. It is essentially asking what NVIDIA’s…
