Discounted cash flow valuation of NVIDIA corporation

Abstract

This thematic paper aims to estimate the intrinsic value of NVIDIA Corporation by using the Discounted Cash Flow valuation method (FCFF). The estimated share value reflects the company’s strong fundamentals, expected future growth, and associated risks. NVIDIA is a global leader in accelerated computing and AI infrastructure, benefiting from surging demand across data centers, gaming, and generative AI applications. With its dominant market share in GPUs and expanding ecosystem, we anticipate NVIDIA will continue to deliver high revenue and cash flow growth in the foreseeable future. Based on our valuation as of August 2025, the target price is estimated at USD 147.59, representing a downside from the market price of USD 164.00 at the valuation date. Therefore, our investment recommendation is H, as the current market price may already reflect overly optimistic future expectations. Ultimately, we hope that this paper serves as a valuable resource for investors seeking to understand the intrinsic value of NVIDIA and the sensitivity of its valuation to growth and discount rate assumptions.