The sticker price on the world's most important chipmaker is high, but the multiple you are actually paying two years from now is another story entirely.
With its data center revenue growing 92% year-over-year, it is no surprise that NVIDIA (NVDA) commands a premium. The stock trades at about 30.7 times its last twelve months of earnings, a multiple that gives many investors pause. But that headline figure is not the price a patient holder is really paying.
The Discount That Time Delivers
Look two years out, and the picture changes completely. Based on the earnings **** ysts expect by fiscal year 2028, today's share price of about $208.48 is only about 16.2 times those future earnings. That is a 47% lower multiple than the trailing one, a discount that materializes as earnings grow into the price. A small part of this drop comes from comparing trailing adjusted earnings to forward consensus estimates, which are not defined identically, but the bulk of it reflects expected growth. For an investor with a multi-year horizon, you are effectively buying the business at that lower future multiple.
And NVIDIA is far from alone: which 10 S&P 500 stocks carry the biggest hidden forward discount? Our rankings sort the entire index by how little you are really paying for each name's growth once the out-year earnings land.
#year
With its data center revenue growing 92% year-over-year, it is no surprise that NVIDIA (NVDA) commands a premium. The stock trades at about 30.7 times its last twelve months of earnings, a multiple that gives many investors pause. But that headline figure is not the price a patient holder is really paying.
The Discount That Time Delivers
Look two years out, and the picture changes completely. Based on the earnings **** ysts expect by fiscal year 2028, today's share price of about $208.48 is only about 16.2 times those future earnings. That is a 47% lower multiple than the trailing one, a discount that materializes as earnings grow into the price. A small part of this drop comes from comparing trailing adjusted earnings to forward consensus estimates, which are not defined identically, but the bulk of it reflects expected growth. For an investor with a multi-year horizon, you are effectively buying the business at that lower future multiple.
And NVIDIA is far from alone: which 10 S&P 500 stocks carry the biggest hidden forward discount? Our rankings sort the entire index by how little you are really paying for each name's growth once the out-year earnings land.
#year
18 hours ago
