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Is NVIDIA Corporation (NVDA) overvalued or undervalued?

Updated Nov 10, 2026 · hand-researched model · educational, not advice

Fair value
$139.92
Market price
$178.67
Downside to fair value
21.7%
Verdict
28% above fair value

Test the assumptions — move the discount rate

The DCF value below is a real engine result at each WACC (not a re-estimate). Drag to see how sensitive NVDA's DCF is to the discount rate.

Market price: $178.67

At a recent price of $178.67, NVIDIA Corporation (NVDA) trades 28% above TickerWorth's blended fair value of $139.92 per share — a discounted-cash-flow model cross-checked against peer multiples and asset value — meaning the market currently prices NVDA overvalued vs our estimate of what the business is intrinsically worth. Our fair value sits below the market, an implied -21.7% move to close the gap if the business performs in line with our assumptions. This is an educational model, not a price target or a recommendation — the value moves with the inputs, which you can test yourself using the WACC slider below.

One of the lenses behind that blended figure is a discounted-cash-flow model, which on its own values NVDA at about $106.05 per share. The rest of this page walks through that DCF — its assumptions, reverse-DCF and discount-rate sensitivity — because it is the auditable anchor of the blend.

The valuation discounts NVIDIA Corporation's projected free cash flows at a weighted-average cost of capital (WACC) of 14.5%, with a long-run terminal growth rate of 2.5%. About 59% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.

Running the DCF in reverse — solving for the growth the current price already assumes — NVDA would need sustained revenue growth of more than 25%/yr to justify today's price. We don't quote a precise figure here, because past about 25% a year the reverse-DCF stops being informative: it solves for revenue growth alone, holding margins, capital intensity and the forecast horizon fixed, so a price well above our fair value has nowhere to go but growth. The honest reading is that the price implies growth this model can't reconcile — not that we forecast it.

Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, NVDA's modeled DCF value ranges from about $90.18 to $130.06 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.

How to read this page: the DCF fair value is what NVIDIA Corporation would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of NVDA's intrinsic value. Figures update as new filings and prices come in.

The assumptions behind NVDA's DCF

InputValueSource
Base-year revenue$215,938,000,000NVIDIA FY2026 10-K (accession 0001045810-26-000021, filed 2026-02-25): us-gaap:Revenues, fiscal year ended 2026-01-25: $215,938M, +65% on FY2025's $130,497M. Data Center was $193.7B of it (Q4 FY26 release, accession 0001045810-26-000019). NVIDIA's fiscal year ends in late January, so FY2026 is essentially calendar 2025 and is the latest COMPLETED year with a filed 10-K. UNCHANGED as the base — the DCF grows this figure by forecast.revenue_growth, so the two FY2027 quarters already reported belong in Year 1, not here. CROSS-CHECK: H1 FY2027 (to 2026-07-26) revenue was $177,837M, +96% on H1 FY2026's $90,805M; TTM to 2026-07-26 is $302,970M ($215,938M - $90,805M + $177,837M). The base year is already 40% below the trailing run-rate, which is why Year 1 growth is so large.
Base EBIT margin60.4%NVIDIA FY2026 10-K (accession 0001045810-26-000021, filed 2026-02-25): us-gaap:OperatingIncomeLoss $130,387M / revenue $215,938M = 60.38%, GAAP. Includes SBC ($6,386M) and acquired-intangible amortization, so this is the conservative, fully-loaded line. It is DEPRESSED by roughly $4.3B of net H20 (China) inventory and purchase-obligation charges in H1 FY2026 (release footnote: $4.5B charge in Q1 FY26, $180M release in Q2 FY26); ex-H20 the year ran ~62.4%. Kept GAAP rather than adjusted. CROSS-CHECK, LATEST QUARTERS: H1 FY2027 GAAP operating income $117,270M / $177,837M = 65.94% (Q1 65.6%, Q2 66.2%) — so the margin has risen since the base year, which matters for the cyclical flag: the engine measures the fade off the HIGHER of this and Year 1.
Forecast revenue growth86% → 70% → 10% → 5% → 3%Assumption — TickerWorth's 5-year explicit forecast
Risk-free rate5.2%US 10Y Treasury constant maturity (FRED DGS10): 5.24% on 2026-10-01, the latest published observation. Shared by every model in this tracker.
Beta1.86Assumption — normalized estimate; published Yahoo/yfinance 5Y-monthly beta 2.217 as the anchor: Published 5Y-monthly beta is 2.217 (Yahoo/yfinance, read 2026-10-03); I reproduced it from yfinance prices vs the S&P 500 (2.216, 61 monthly returns). Normalized DOWN to 1.86, which RAISES the value (about +$14/share vs 2.217). Reasons: (1) the 5-year window opens in late 2021 and is dominated by the 2022 drawdown and 2023 re-rating of what was then a ~$0.4-1T gaming/crypto-exposed chip company, not today's ~$5.6T AI-infrastructure supplier; (2) every shorter window I measured is lower — 3Y monthly 1.90, 2Y weekly 1.86, 2Y daily 1.92, 1Y weekly 1.62 — and the standard Blume adjustment of the published figure (0.67 x 2.217 + 0.33) is 1.82. 1.86 is the median of those five. Even so this is a HIGH beta and the dominant input in the model: cost of equity is 14.5%, applied forever. Each 0.1 of beta is worth roughly $5-6/share; a beta of 1.0 gives ~$165.
Terminal growth2.5%Assumption — house default: House default 2.5% (roughly long-run nominal GDP), kept for comparability with every other company in this tracker. Well below the 14.48% WACC. A strong case could be made for a higher number on a secular AI view, but that is exactly the kind of judgement the explicit years (+70% in FY2028) already carry; 3.0% adds only ~$3/share because the high WACC shrinks the terminal.
Diluted shares24,285MNVIDIA Q2 FY2027 10-Q (accession 0001045810-26-000075, filed 2026-08-26): Q2 FY2027 weighted-average diluted shares 24,285M (basic 24,190M; H1 diluted 24,338M; FY2026 24,514M). The count is FALLING: buybacks ($39.0B in H1 FY27, $99.0B authorization remaining) more than offset SBC issuance. Diluted rather than the 24.1B outstanding because that is how this tracker carries SBC dilution.
Market price$178.67Delayed quote · as of 2026-11-10 05:15 UTC

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TickerWorth is an educational DCF tool, not a licensed investment adviser. Figures are estimates derived from public filings and market data and can be wrong.