Peter Lynch's formula is:
NVIDIA Fair Value
= Earnings Growth Rate x TTM EPS
NVIDIA Fair Value
= 25.00 x 11.90
NVIDIA Fair Value
= 297.59
The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.
| Historical Earnings | ||||||
| 2020-01-26 | 2021-01-31 | 2022-01-30 | 2023-01-29 | 2024-01-28 | 5Y Avg | |
| Net income | 2,796.00 | 4,332.00 | 9,752.00 | 4,368.00 | 29,760.00 | 10,201.60 |
| YoY growth | -32.48% | 54.94% | 125.12% | -55.21% | 581.32% | 134.74% |
