NVIDIA Corp Market Capitalization vs. Net Income

0R1I Stock   141.41  2.60  1.87%   
Considering NVIDIA Corp's profitability and operating efficiency indicators, NVIDIA Corp may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess NVIDIA Corp's ability to earn profits and add value for shareholders.
For NVIDIA Corp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of NVIDIA Corp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well NVIDIA Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between NVIDIA Corp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of NVIDIA Corp over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between NVIDIA Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine if NVIDIA Corp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, NVIDIA Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

NVIDIA Corp Net Income vs. Market Capitalization Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining NVIDIA Corp's current stock value. Our valuation model uses many indicators to compare NVIDIA Corp value to that of its competitors to determine the firm's financial worth.
NVIDIA Corp is rated third in market capitalization category among its peers. It is number one stock in net income category among its peers making up about  0.01  of Net Income per Market Capitalization. The ratio of Market Capitalization to Net Income for NVIDIA Corp is roughly  142.71 . At this time, NVIDIA Corp's Net Income is comparatively stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the NVIDIA Corp's earnings, one of the primary drivers of an investment's value.

NVIDIA Net Income vs. Market Capitalization

Market Capitalization is the total market value of a company's equity. It is one of many ways to value a company and is calculated by multiplying the price of the stock by the number of shares issued. If a firm has one type of stock its market capitalization will be the current market share price multiplied by the number of shares. However, if a company has multiple types of equities then the market cap will be the total of the market caps of the different types of shares.

NVIDIA Corp

Market Cap

 = 

Shares Outstanding

X

Share Price

 = 
618.2 B
In most publications or references market cap is broken down into the mega-cap, large-cap, mid-cap, small-cap, micro-cap, and nano-cap. Market Cap is a measurement of business as total market value of all of the outstanding shares at a given time, and can be used to compare different companies based on their size.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

NVIDIA Corp

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
4.33 B
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.

NVIDIA Net Income Comparison

NVIDIA Corp is currently under evaluation in net income category among its peers.

NVIDIA Corp Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in NVIDIA Corp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, NVIDIA Corp will eventually generate negative long term returns. The profitability progress is the general direction of NVIDIA Corp's change in net profit over the period of time. It can combine multiple indicators of NVIDIA Corp, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Interest Income146.1 M81 M
Operating Income5.2 B3.6 B
Income Before Tax5.1 B3.6 B
Net Income Applicable To Common SharesB3.5 B
Net IncomeB3.5 B
Income Tax Expense215.1 M225.9 M
Change To Netincome572.7 M449.1 M

NVIDIA Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on NVIDIA Corp. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of NVIDIA Corp position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the NVIDIA Corp's important profitability drivers and their relationship over time.

Use NVIDIA Corp in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if NVIDIA Corp position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in NVIDIA Corp will appreciate offsetting losses from the drop in the long position's value.

NVIDIA Corp Pair Trading

NVIDIA Corp Pair Trading Analysis

The ability to find closely correlated positions to NVIDIA Corp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace NVIDIA Corp when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back NVIDIA Corp - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling NVIDIA Corp to buy it.
The correlation of NVIDIA Corp is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as NVIDIA Corp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if NVIDIA Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for NVIDIA Corp can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your NVIDIA Corp position

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Non-Metallic and Industrial Metal Mining
Non-Metallic and Industrial Metal Mining Theme
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Additional Tools for NVIDIA Stock Analysis

When running NVIDIA Corp's price analysis, check to measure NVIDIA Corp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy NVIDIA Corp is operating at the current time. Most of NVIDIA Corp's value examination focuses on studying past and present price action to predict the probability of NVIDIA Corp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move NVIDIA Corp's price. Additionally, you may evaluate how the addition of NVIDIA Corp to your portfolios can decrease your overall portfolio volatility.