NVIDIA Corporation (NASDAQ:NVDA) - An Attractively Priced Stock

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Using The Applied Finance Group’s (AFG's) Intrinsic Value Chart, you can easily identify under and overvalued securities based on AFG’s default intrinsic value of the firm relative to its trading range and helps investors to identify good times to buy or sell securities according to what AFG believes the stock is worth.

AFG’s valuation metrics have proven to be successful at identifying investment ideas that out and underperform and back-tests have consistently shown that AFG creates a significant spread in performance between those companies AFG identifies as overvalued and companies identified as undervalued.

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Today’s Chart of the Day is the default Intrinsic Value Chart for NVIDIA Corporation (NASDAQ:NVDA), a company that currently looks undervalued from strictly a valuation standpoint with an AFG Value Score of 91 meaning it ranks in the top 90th percentile of companies in the AFG universe in valuation attractiveness.

Later this week ValueExpectations.com will be releasing another article on NVDA with other reasons why we like the company!

AFG's valuation techniques help investors identify and take advantage of mispriced securities in the market. One way investors can identify over or undervalued stocks is by using AFG’s Intrinsic Value Chart, which displays a company’s intrinsic value relative to its trading range and helps entry/exit points.

This easy to read chart identifies how far a stock’s trading range deviates from its intrinsic value (target price assuming immediate decay), which helps you recognize potentially mispriced stocks and pursue long and short opportunities. AFG’s Intrinsic Value Chart also contains a company’s Value Score (ranked valuation attractiveness), Economic Margin Change (expected improvement of economic profitability), and Accuracy (how well AFG’s default valuation has tracked the company) information. AFG’s valuation framework estimates a company’s equity value by subtracting debt and other liabilities from the total enterprise value. The total enterprise value is estimated by discounting projected future cash flows, utilizing analyst consensus, Economic Margin methodology, and the Decay concept which addresses the perpetuity bias in the traditional DCF model.

AFG’s Intrinsic Value Chart:

• Identifies entry/exit points

• Shows how well AFG has tracked the company (accuracy)

• Displays the trading range of the company each year through time (blue bars)

• Displays the end of year closing price (dash on blue bar)

• Displays AFG’s default intrinsic value (red dotted line)

How to Read this chart:

• The Blue Bars represent the high and low trading range for a stock for each calendar year.

• The red dotted line represents Applied Finance Group’s (AFG’s) historical Intrinsic Value through time.

• When the red line (Intrinsic Value) is above the blue bars (trading range) the company looks to be undervalued.

• When the red line (Intrinsic Value) is below the blue bars (trading range) the company looks to be overvalued.

Below is an example of AFG’s Intrinsic Value Chart and the important things to look for within the chart as well as two examples of undervalued companies according to AFG’s Intrinsic Value Chart as well as two overvalued and two fairly valued examples to provide a better understanding of what to look for when analyzing AFG’s Intrinsic Value Chart.

To stay updated on companies AFG believes are attractive investment opportunities register for ValueExpectations.com It's Fast and Free!