Analysis of Enterprise Valuation and Future Development of Nvidia

Abstract

In recent years, as artificial intelligence technology continues to advance, the development of science and technology cannot be separated from the support of a cross-generation company. As a leader in the artificial intelligence industry, Nvidia started with GPUs and has followed the trend of AI by continuously expanding its business contemporarily. However, at the same time, Nvidia’s revenue and stock price have also surged in several months. With this in mind, to calculate the true value of Nvidia, this research paper mainly conducts financial analysis and forecasts of Nvidia’s future development. To be specific, Pro Forma, the DCF model and intrinsic valuation method are adopted to value Nvidia. According to the analysis, Nvidia’s actual intrinsic value after prediction is still higher than the market price. At the same time, in addition to quantitative analysis, there will also be a lot of uncertainty regarding to the enterprise valuation. Overall, these results offer some insights on Nvidia and relevant industry valuation analysis.