Mag 7 valuations before & after Nvidia earnings: Chart of the Day

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Mag 7 valuations before & after Nvidia earnings: Chart of the Day

00:00 Speaker A

Now, with Nvidia in the books in terms of its earnings, we do see investors taking another look at Nvidia individually, as well as the big tech sector collectively, as exemplified by the magnificent seven. And this prompted me to take a look at what we see in terms of the forward price earnings ratios. What do valuations look like for the mega cap tech trade right now? And what’s notable is that really this year, we’ve seen Nvidia in particular come down quite a bit in terms of its valuation. That’s something that a lot of investors have pointed out, and it’s now sort of more comparable with its peers within the mag 7. Even though it looks like there’s a lot of dispersion now, as I’ll show you in a moment, there’s not a lot of space in between many of the mag 7 names. And in particular, when it comes to Nvidia, we talked to Angelo Zeno, CFRA yesterday in reaction to the Nvidia earnings, and he flagged that the valuation looks more attractive right now.

02:16 Angelo Zino

expect anything along the lines of what we’ve seen here over the last two years, I think that’s perfectly okay, because when you look at Nvidia’s multiple today, um, relative to what we’ve seen here in recent memory, it’s nowhere near the levels that we’ve seen it.

02:41 Speaker A

So in other words, what he was saying is that even though we’re not seeing the kind of magnitude of growth that we once were for Nvidia, it’s still quite high, but it’s not as high as it was. That’s okay, because you’re not paying up as much for the stock. Now, just to get a little more granular here, I wanted to look at the exact numbers for this estimated PE here for these companies. Now, you see Nvidia here at 31, which is pretty comparable with most of its cohort. Right now, Alphabet is priced the lowest in these terms at 18. Then you have Meta 25, Apple 28,

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30, Nvidia 31, and

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. Of course, the outlier here is Tesla. That’s why we didn’t put it on the other chart, because it would have skewed the whole thing, because its price earnings ratio, both on a trailing and forward basis, is much, much higher than the others. That’s one of the reasons that some of the bears are not into that stock. But it is interesting to see this current landscape now that we are through the earning season.

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#Mag #valuations #Nvidia #earnings #Chart #Day

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