Nvidia is rising again today. It has been going through the roof.
Stock analysis can get really complicated if you let it, but with each data point, there is a diminishing rate of return.
If I don't have time to look at everything (which none of us do), look at the trends in quarterly sales, quarterly earnings per share and long term debt versus cash.
See the attached for these metrics.
Quarterly sales gives you a clear idea how their product is doing in the market place.
Quarterly earnings per share shows you how well management is able to effectively bring sales to their profit line.
Long term debt versus cash shows how risky the company is should the marketplace change.
Now compare the growth in per share earnings to the market P/E. Is the earnings per share growing fast enough to support the P/E?
I hold Nvidia and like it. But, for me, the P/E is a little high to get into it at this point. Great company, but the stock is a little high to be a great stock to buy.
Be smart, be well-read, be aware and be successful.
