Equity Value Triangulation With Multiple Valuation Approach

| Deb Sahoo | MBA, Finance, University of Michigan | MS, EE, University of Southern California | B-Tech, EE, IIT |
Basic Information
General Information
Date of Analysis:
Company:
Ticker:
Exchange:
Price:
Beta:

Current Stock Data

04/25/13
NVIDIA Corporation
NVDA
NASDAQ
$13.47
1.49

SPS:
CFPS:
EPS:
DPS:
BVPS:

Market Data - S&P 500

Index Value (Source: Yahoo Finance)

2008

High
Low
Close

1,471.77
1,442.07
1,447.16
$67.44
$29.38
$522.44

Earnings per Share (EPS) (Source: http://www.multpl.com/table)

Dividends per Share (DPS) (Source: http://www.multpl.com/table)
Book Value per Share (BV) (Source: http://www.multpl.com/table)

Financial Ratios - Market Index

2009

$6.74
$1.33
$0.91
$0.15
$7.92

P/SPS:
P/CFPS:
P/E:
Yield:
P/BV:

2010

934.73
899.35
931.80
$13.14
$30.19
$465.90

Current Market Data (S&P 500)

2011

1,133.87
1,116.56
1,132.99
$54.73
$22.43
$522.12

1,276.17
1,257.62
1,271.87
$78.03
$22.77
$586.12

2.0
10.1
14.8
1.1%
1.70

2012

1,284.62
1,258.86
1,277.06
$85.88
$26.31
$622.96

Price:
EPS:
DPS:
BV:

5-Yr. Avg

$1,585.16
$95.49
$36.46
$689.20

5-Yr. Grth Nxt Yr. Est w/Past Growth

-------

-3.3%
-3.3%
-3.1%
6.2%
-2.7%
4.5%

$91.21
$25.60
$650.99

P/E:
Yield:
P/BV:

16.6
2.3%
2.3

Est 1 of Nxt Yr.

Est 2 of Nxt Yr.

$91.21
$25.60

$59.84
$26.21

2008

2009

2010

2011

2012

5-Yr. Avg

5-Yr. Grth

High
Low
Close

21.8
21.4
21.5

71.1
68.4
70.9

20.7
20.4
20.7

16.4
16.1
16.3

15.0
14.7
14.9

29.0
28.2
28.9

----

Estimate of Market P/E

28.7

Low
High
Close

2.0%
2.0%
2.0%

3.2%
3.4%
3.2%

2.0%
2.0%
2.0%

1.8%
1.8%
1.8%

2.0%
2.1%
2.1%

2.2%
2.3%
2.2%

----

Estimate of Market Yield

2.2%

High
Low
Close

Payout Ratio (DPS/EPS)

Return on Equity (EPS/BV)

2.8
2.8
2.8
43.6%
12.9%

2.0
1.9
2.0
229.7%
2.8%

2.2
2.1
2.2
41.0%
10.5%

2.2
2.1
2.2
29.2%
13.3%

2.1
2.0
2.1
30.6%
13.8%

2.2
2.2
2.2
74.8%
10.7%

------

Stock Data

2008

2009

2010

2011

2012

5-Yr. Avg

Price-Earnings Ratio (P/E)

Dividend Yield

Price to Book Value (P/BV)

Price (P):

Sales per Share (SPS) (Source: Morningstar.com)

Cash Flow per Share (CFPS) (Source: Morningstar.com)
Earnings per Share (EPS) (Source: Morningstar.com)
Dividends per Share (DPS) (Source: Morningstar.com)
Total Assets per Share (APS) (Source: GuruFocus
Total Liabilities per Share (LPS) (Source: GuruFocus)
Book Value per Share (BV) (Source: Morningstar.com)

High
Low
Close

$34.25
$32.56
$33.01
$27.51
$3.59
$2.58
$0.01
$6.81
$2.05
$19.42

$8.77
$8.04
$8.71
$2.42
$0.34
$0.40
$0.01
$6.11
$1.74
$2.03

$18.62
$18.11
$18.49
$7.70
$0.64
$0.44
$0.01
$6.52
$1.67
$5.96

$15.97
$15.50
$15.82
$7.19
$1.74
$1.19
$0.01
$7.82
$2.29
$7.53

$14.40
$14.01
$14.04
$7.39
$1.43
$0.92
$0.01
$9.21
$2.33
$8.78

-----------

Est of Nxt Yr.

5-Yr. Grth Nxt Yr. Est w/Past Growth

-19.5%
-19.0%
-19.2%
-28.0%
-20.5%
-22.6%
0.0%
7.8%
3.2%
-18.0%

$5.32
$1.14
$0.71
$0.01
$9.93
$2.40
$7.20

Est 1 of Nxt Yr.

Est 2 of Nxt Yr.

$5.32
$1.14
$0.71
$0.02
$9.93
$2.40
$7.20

$10.44
$1.55
$1.11
$0.01
$7.30
$2.02
$8.74

Financial Ratios - Stock

2008

2009

2010

2011

2012

5-Yr. Avg

5-Yr. Grth

Est of Nxt Yr.

Price-Sales Ratio
(P/SPS)

High
Low
Close

1.2
1.2
1.2

3.6
3.3
3.6

2.4
2.4
2.4

2.2
2.2
2.2

1.9
1.9
1.9

2.3
2.2
2.3

----

P/SPS Estimate:

2.3

Price-Cash Flow Ratio

(P/CFPS)

High
Low
Close

9.5
9.1
9.2

25.7
23.5
25.5

28.9
28.1
28.7

9.2
8.9
9.1

10.1
9.8
9.8

16.7
15.9
16.5

----

P/CFPS Estimate:

16.4

Price-Earnings Ratio
(P/E)

High
Low
Close

13.3
12.6
12.8

21.9
20.1
21.8

42.1
40.9
41.8

13.4
13.0
13.3

15.6
15.2
15.2

21.3
20.4
21.0

----

P/E Estimate:

20.9

Dividend Yield

Low
High
Close

0.0%
0.0%
0.0%

0.1%
0.1%
0.1%

0.1%
0.1%
0.1%

0.1%
0.1%
0.1%

0.1%
0.1%
0.1%

0.1%
0.1%
0.1%

----

Yield Estimate:

0.1%

High
Low
Close

1.8
1.7
1.7

4.3
4.0
4.3

3.1
3.0
3.1

2.1
2.1
2.1

1.6
1.6
1.6

2.6
2.5
2.6

----

P/BV Estimate:

2.6

4.04
9.4%
37.8%
13.3%
30.1%
10.6%
0.4%
13.2%

0.40
16.5%
6.5%
19.7%
28.5%
86.1%
2.5%
19.3%

1.18
5.7%
6.8%
7.4%
25.7%
28.1%
2.3%
7.2%

0.92
16.5%
15.2%
15.8%
29.2%
30.3%
0.8%
15.7%

0.80
12.5%
10.0%
10.5%
25.3%
26.5%
1.1%
10.4%

1.47
12.1%
15.3%
13.4%
27.8%
36.3%
1.4%
13.2%

---------

Price-Book Value Ratio

(P/BV)

Asset Turnover (SPS/APS)

Net Profit Margin (EPS/SPS)
Return on Assets (EPS/APS)
Return on Equity (EPS/BV)
Total Liabilities to Total Assets (LPS/APS)
Total Liabilities to Equity (LPS/BV)
Payout Ratio (DPS/EPS)
Sustainable Growth (ROE X (1-Payout))

Valuation Methods

A. Valuation Based on Average P/SPS

Average P/SPS

Estimated SPS

Valuations

Value to Price

Average High P/SPS X Estimated SPS

2.3

$5.32
$5.32
$10.44

w/Past Growth
Est. 1
Est 2

=
=
=

$12.24
$12.24
$24.02

91%
91%
178%

Average Low P/SPS X Estimated SPS

2.2

$5.32
$5.32
$10.44

w/Past Growth
Est. 1
Est 2

=
=
=

$11.70
$11.70
$22.97

87%
87%
171%

Average Close P/SPS X Estimated SPS

2.3

$5.32
$5.32
$10.44

w/Past Growth
Est. 1
Est 2

=
=
=

$12.24
$12.24
$24.02

91%
91%
178%

P/SPS Estimate X Estimated SPS

2.3

$5.32
$5.32
$10.44

w/Past Growth
Est. 1
Est 2

=
=
=

$12.06
$12.06
$23.67

90%
90%
176%

Valuations

Value to Price

B. Valuation Based on Average P/CFPS

Avg High P/CFPS X Estimated CFPS

Average P/CFPS

16.7

Estimated CFPS

$1.14
$1.14
$1.55

w/Past Growth
Est. 1
Est 2

=
=
=

$19.02
$19.02
$25.87

141%
141%
192%

$1.14

w/Past Growth

$18.11

134%

Avg Low P/CFPS X Estimated CFPS

15.9

$1.14
$1.55

Est. 1
Est 2

=
=

$18.11
$24.63

134%
183%

Avg Close P/CFPS X Estimated CFPS

16.5

$1.14
$1.14
$1.55

w/Past Growth
Est. 1
Est 2

=
=
=

$18.79
$18.79
$25.56

140%
140%
190%

P/CFPS Estimate X Estimated CFPS

16.4

$1.14
$1.14
$1.55

w/Past Growth
Est. 1
Est 2

=
=
=

$18.64
$18.64
$25.35

138%
138%
188%

C. Valuation Based on Average P/E

Average P/E

Valuations

Value to Price

Estimated EPS

Average High P/E X Estimated EPS

21.3

$0.71
$0.71
$1.11

w/Past Growth
Est. 1
Est 2

=
=
=

$15.23
$15.23
$23.58

113%
113%
175%

Average Low P/E X Estimated EPS

20.4

$0.71
$0.71
$1.11

w/Past Growth
Est. 1
Est 2

=
=
=

$14.58
$14.58
$22.58

108%
108%
168%

Average Close P/E X Estimated EPS

21.0

$0.71
$0.71
$1.11

w/Past Growth
Est. 1
Est 2

=
=
=

$15.01
$15.01
$23.24

111%
111%
173%

P/E Estimate X Estimated EPS

20.9

$0.71
$0.71
$1.11

w/Past Growth
Est. 1
Est 2

=
=
=

$14.94
$14.94
$23.13

111%
111%
172%

Valuations

Value to Price

D. Valuation Based on Average Yield

Estimated DPS

Average Yield

Estimated DPS / Average Low Yield

$0.01
$0.02
$0.01

w/Past Growth
Est. 1
Est 2

0.1%

=
=
=

$10.00
$20.00
$10.00

74%
148%
74%

Estimated DPS / Average High Yield

$0.01
$0.02
$0.01

w/Past Growth
Est. 1
Est 2

0.1%

=
=
=

$10.00
$20.00
$10.00

74%
148%
74%

Estimated DPS / Average Close Yield

$0.01
$0.02
$0.01

w/Past Growth
Est. 1
Est 2

0.1%

=
=
=

$10.00
$20.00
$10.00

74%
148%
74%

Estimated DPS / Yield Estimate

$0.01
$0.02
$0.01

w/Past Growth
Est. 1
Est 2

0.1%

=
=
=

$10.00
$20.00
$10.00

74%
148%
74%

Valuations

Value to Price

E. Valuation Based on Average P/BV

Average P/BV

Estimated BV

Average High P/BV X Estimated BV

2.6

$7.20
$7.20
$8.74

w/Past Growth
Est. 1
Est 2

=
=
=

$18.71
$18.71
$22.73

139%
139%
169%

Average Low P/BV X Estimated BV

2.5

$7.20
$7.20
$8.74

w/Past Growth
Est. 1
Est 2

=
=
=

$17.99
$17.99
$21.86

134%
134%
162%

Average Close P/BV X Estimated BV

2.6

$7.20
$7.20
$8.74

w/Past Growth
Est. 1
Est 2

=
=
=

$18.71
$18.71
$22.73

139%
139%
169%

$7.20

w/Past Growth

$18.47

137%

P/BV Estimate X Estimated BV

F. Valuation Based on Relative P/E Multiplier

Relative P/E
( = Stock P/E / Market P/E)

High
Low
Close

2.6

$7.20
$8.74

Est. 1
Est 2

2008

2009

2010

2011

2012

Avg of Relative P/E

0.61
0.59
0.60

0.31
0.29
0.31

2.03
2.00
2.02

0.82
0.81
0.82

1.04
1.03
1.02

0.96
0.95
0.95

w/Growth
$0.71
$11.39
$11.27
$11.27

Value to
Price
85%
84%
84%

Valuations--EPS Forecast
w/Est. 1
$0.71
$11.39
$11.27
$11.27

Value to
Price
85%
84%
84%

w/Est. 2
$1.11
$17.64
$17.46
$17.46

Value to
Price
131%
130%
130%

Current Market EPS

Market P/E

$95.49

16.6

17.4

26.5

=
=

$18.47
$22.44

137%
167%

Estimate of Relative P/E

0.95

Avg of Relative P/E

0.96
0.95
0.95

=
=
=

Adjusted P/E
15.9
15.8
15.8

0.96
0.95
0.95

=
=
=

16.7
16.5
16.5

$11.93
$11.80
$11.80

89%
88%
88%

$11.93
$11.80
$11.80

89%
88%
88%

$18.47
$18.28
$18.28

137%
136%
136%

0.96
0.95
0.95

=
=
=

25.4
25.2
25.2

$18.18
$17.99
$17.99

135%
134%
134%

$18.18
$17.99
$17.99

135%
134%
134%

$28.15
$27.85
$27.85

209%
207%
207%

Estimate of Relative P/E

0.95

Adjusted P/E
27.3

Valuation
w/Growth
$19.55

Value to
Price
145%

Valuation
w/Est. 1
$19.55

Value to
Price
145%

Valuation
w/Est. 2
$30.27

Value to
Price
225%

2008
0.00
0.00
0.00

2009
0.03
0.03
0.03

2010
0.05
0.05
0.05

2011
0.06
0.06
0.06

2012
0.05
0.05
0.05

Avg of Relative Yield

0.04
0.04
0.04

w/Growth
$0.01
$10.87
$10.87
$10.87

Value to
Price
81%
81%
81%

Valuations--DPS Forecast
w/Est. 1
$0.02
$21.74
$21.74
$21.74

Value to
Price
161%
161%
161%

w/Est. 2
$0.01
$10.87
$10.87
$10.87

Value to
Price
81%
81%
81%

Est 1 of Nxt Yr. Market EPS

$91.21
Est 2 of Nxt Yr. Market EPS
$59.84

Estimate of Market P/E

28.7

G. Valuation Based on Relative Dividend Yield

Relative Yield
( = Stock Yield / Mkt Yield)

Low
High
Close

Current Market DPS

Market Yield

$36.46

2.3%

1.6%

1.7%

Estimate of Relative Yield

0.04

Avg of Relative Yield

0.04
0.04
0.04

=
=
=

Adjusted Yield
0.1%
0.1%
0.1%

0.04
0.04
0.04

=
=
=

0.1%
0.1%
0.1%

$15.48
$15.48
$15.48

115%
115%
115%

$30.96
$30.96
$30.96

230%
230%
230%

$15.48
$15.48
$15.48

115%
115%
115%

0.04
0.04
0.04

=
=
=

0.1%
0.1%
0.1%

$15.12
$15.12
$15.12

112%
112%
112%

$30.23
$30.23
$30.23

224%
224%
224%

$15.12
$15.12
$15.12

112%
112%
112%

Adjusted Yield
0.1%

Valuation
w/Growth
$11.23

Value to
Price
83%

Valuation
w/Est. 1
$22.46

Value to
Price
167%

Valuation
w/Est. 2
$11.23

Value to
Price
83%

Market DPS 1
$25.60
Market DPS 2
$26.21

Estimate of Market Yield

2.2%

Estimate of Relative Yield

0.04

Valuation Summary
Valuation Method
Valuation Based on Average P/SPS
Valuation Based on Average P/CFPS
Valuation Based on Average P/E
Valuation Based on Average Yield
Valuation Based on Average P/BV
Valuation Based on Relative P/E Multiplier - Est 1 of Stock EPS
Valuation Based on Relative P/E Multiplier - Est 2 of Stock EPS
Valuation Based on Relative Dividend Yield - Est 1 of Stock Yield
Valuation Based on Relative Dividend Yield - Est 2 of Stock Yield

Minimum Values
$11.70
$18.11
$14.58
$10.00
$17.99
$11.27
$17.46
$21.74
$10.87

Maximum Values
$24.02
$25.87
$23.58
$23.58
$22.73
$19.55
$30.27
$30.96
$15.48

Minimum Value/Price Maximum Value/Price Current Stock Price

87%
178%
$13.47
134%
192%
$13.47
108%
175%
$13.47
108%
175%
$13.47
134%
169%
$13.47
84%
145%
$13.47
130%
225%
$13.47
161%
230%
$13.47
81%
115%
$13.47

Valuation Charts

Equity Valuation Range

$35.00

250%

200%

Intrinsic Stock Value

$25.00
150%

$20.00

$15.00

100%

$10.00
50%
$5.00

$0.00

0%
Valuation Based on Average
P/SPS

Valuation Based on Average

P/CFPS

Valuation Based on Average

P/E

Valuation Based on Average

Yield

Valuation Based on Average

P/BV

Valuation Based on Relative Valuation Based on Relative Valuation Based on Relative Valuation Based on Relative
P/E Multiplier - Est 1 of Stock P/E Multiplier - Est 2 of Stock Dividend Yield - Est 1 of Stock Dividend Yield - Est 2 of Stock
EPS
EPS
Yield
Yield

Valuation Methods
Minimum Values

Maximum Values

Current Stock Price

Minimum Value/Price

Maximum Value/Price

Intrinsic Stock Value / Stco Price Ratio (%)

$30.00