Stock Presentation: Nvidia (NVDA)
The Rocky Mountain Chapter model club focuses on small and mid-sized companies, classified by BI according to sales revenue. Should the club consider NVDA, a faster growing company, with sales that qualify as a large company, be considered in the portfolio as it is growing sales and EPS like a small company?
The Motley Fool has stated that High P/E stocks require additional approaches to help confirm if analysis trajectory is rational.
The evaluation of NVDA will focus on two methods to evaluate high P/E stocks:
1. Price to Book Value per Share Ratio
2. Sales Forecast Ratio to High P/E estimate.
These methods will be applied to NVDA, a faster growing and a high P/E stock. As part of the discussion, Joan will also discuss using limits orders to take advantage of price fluctuations of a faster growing stock to buy at a rational price and increase potential return.
For an introduction to using different ratios for a stock evaluation, view the short presentation by John Rogers.