Nvidia Stock Alpha and Beta Analysis

NVDA Stock  USD 902.50  23.11  2.50%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as NVIDIA. It also helps investors analyze the systematic and unsystematic risks associated with investing in NVIDIA over a specified time horizon. Remember, high NVIDIA's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation. Key technical indicators related to NVIDIA's market risk premium analysis include:
Beta
1.8
Alpha
0.74
Risk
3.21
Sharpe Ratio
0.32
Expected Return
1.04
Please note that although NVIDIA alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., NYSE Composite index.) So in this particular case, NVIDIA did 0.74  better than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of NVIDIA stock's relative risk over its benchmark. NVIDIA has a beta of 1.80  . As the market goes up, the company is expected to outperform it. However, if the market returns are negative, NVIDIA will likely underperform. The current year's Enterprise Value Multiple is expected to grow to 58.59, whereas Price Book Value Ratio is forecasted to decline to 19.34.
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
  
Check out NVIDIA Backtesting, NVIDIA Valuation, NVIDIA Correlation, NVIDIA Hype Analysis, NVIDIA Volatility, NVIDIA History and analyze NVIDIA Performance.
For information on how to trade NVIDIA Stock refer to our How to Trade NVIDIA Stock guide.

NVIDIA Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. NVIDIA market risk premium is the additional return an investor will receive from holding NVIDIA long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in NVIDIA. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate NVIDIA's performance over market.
α0.74   β1.80

NVIDIA expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of NVIDIA's Buy-and-hold return. Our buy-and-hold chart shows how NVIDIA performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

NVIDIA Market Price Analysis

Market price analysis indicators help investors to evaluate how NVIDIA stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading NVIDIA shares will generate the highest return on investment. By understating and applying NVIDIA stock market price indicators, traders can identify NVIDIA position entry and exit signals to maximize returns.

NVIDIA Return and Market Media

The median price of NVIDIA for the period between Fri, Dec 29, 2023 and Thu, Mar 28, 2024 is 696.38 with a coefficient of variation of 21.65. The daily time series for the period is distributed with a sample standard deviation of 151.76, arithmetic mean of 700.96, and mean deviation of 131.23. The Stock received substential amount of media coverage during this period.
 Price Growth (%)  
       Timeline  
1
Marketmind Chips off the table ahead of Nvidia
02/20/2024
2
See the robot OpenAI is bringing to life with artificial intelligence
02/29/2024
3
Can you buy Nvidia shares on the ASX
03/11/2024
4
Nvidias AI Revolution Is Transforming Healthcare with Johnson Johnson and GE Healthcare Partnerships
03/12/2024
5
Heres What Wall Street Says About Nvidia Ahead Of AI Woodstock
03/15/2024
6
Why Is Jet AI Stock Down Today
03/18/2024
7
Disposition of 74895 shares by Huang Jen Hsun of NVIDIA at 903.72 subject to Rule 16b-3
03/20/2024
8
Cathie Wood trades almost 100 million of 2 big tech stocks
03/22/2024
 
NVIDIA dividend paid on 27th of March 2024
03/27/2024

About NVIDIA Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including NVIDIA or other stocks. Alpha measures the amount that position in NVIDIA has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
 2011 2015 2020 2024 (projected)
Price Earnings Ratio18.0452.3251.8275.41
Short Term Coverage Ratios6.3752.3219.015.83

NVIDIA Upcoming Company Events

As portrayed in its financial statements, the presentation of NVIDIA's financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, NVIDIA's leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of NVIDIA's public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of NVIDIA. Please utilize our Beneish M Score to check the likelihood of NVIDIA's management manipulating its earnings.
21st of February 2024
Upcoming Quarterly Report
View
22nd of May 2024
Next Financial Report
View
31st of January 2024
Next Fiscal Quarter End
View
21st of February 2024
Next Fiscal Year End
View
31st of October 2023
Last Quarter Report
View
31st of January 2023
Last Financial Announcement
View

Build Portfolio with NVIDIA

Your optimized portfolios are the building block of your wealth. We provide an intuitive interface to determine which securities in a portfolio should be removed or rebalanced to achieve better diversification, find the right mix of securities that minimizes portfolio risk for a given return, or maximize portfolio expected return for a given risk level.

Build Diversified Portfolios

Align your risk with return expectations

Fix your portfolio
By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
When determining whether NVIDIA offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of NVIDIA's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Nvidia Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Nvidia Stock:
Check out NVIDIA Backtesting, NVIDIA Valuation, NVIDIA Correlation, NVIDIA Hype Analysis, NVIDIA Volatility, NVIDIA History and analyze NVIDIA Performance.
For information on how to trade NVIDIA Stock refer to our How to Trade NVIDIA Stock guide.
Note that the NVIDIA information on this page should be used as a complementary analysis to other NVIDIA's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

Complementary Tools for NVIDIA Stock analysis

When running NVIDIA's price analysis, check to measure NVIDIA'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 is operating at the current time. Most of NVIDIA's value examination focuses on studying past and present price action to predict the probability of NVIDIA'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's price. Additionally, you may evaluate how the addition of NVIDIA to your portfolios can decrease your overall portfolio volatility.
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Equity Valuation
Check real value of public entities based on technical and fundamental data
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Money Managers
Screen money managers from public funds and ETFs managed around the world
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Stocks Directory
Find actively traded stocks across global markets
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
NVIDIA technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of NVIDIA technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of NVIDIA trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...