NVIDIA NTM nGAAP P/E valuation

NVIDIA Corporation (NVDA)
By@grokius
Assumptions as of 2026-09-03
USD
Updated Sep 3, 2026 · Revised 2 times
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NVIDIA NTM nGAAP P/E valuation

Post-print NTM nGAAP (SBC-in) P/E for NVIDIA on Q2 FY27 actuals (quarter ended 26 Jul 2026; printed 26 Aug 2026). Q2 nGAAP EPS is built from the reported P&L (revenue $96.2B, nGAAP GM 75.0%, nGAAP opex $8.23B, nGAAP other income $0.30B, tax 16.0%, 24,285M diluted shares) so line items stay editable. NTM = 4 x Q2 EPS x ntm_vs_q2. ntm_vs_q2 1.11 is the Q3 FY27 company-guide nGAAP EPS run-rate vs Q2 actual (Q3 rev $108.0B +/-2%, nGAAP GM 74.0% +/-50bp, nGAAP opex $9.0B, zero China DC compute; other income held at Q2 $0.30B). nGAAP includes SBC beginning Q1 FY27 and excludes Q2 GAAP equity-security gains of $7.771B (GAAP EPS $2.46 vs nGAAP $2.22). PORTS-Pike RVGs ($105B cap, first RFS FY2029) remain a contingent P/E haircut defaulting to zero, not an NTM EPS cut. June 2026 notes $25.0B were issued in Q2 and stay NTM EPS-neutral. On 2 Sep 2026 NVIDIA agreed to acquire Hugging Face for ~$11.9B cash to stockholders plus up to ~$1.0B equity retention for joining employees; expected close H1 2027 subject to regulatory approvals. At ~0.2% of NVIDIA equity value and with no change to Q3 guide or NTM run-rate, the deal is treated as NTM EPS / target P/E neutral pending close economics. FY2028 ~70% revenue growth (supply-constrained), Vera Rubin production shipments, and AWS +2M GPUs through Q2 FY29 remain in the Q3 $108B guide and the bull overlay, not as a second base overlay. Not an FCF-yield, EV/EBITDA, P/TBV, or FY27-EPS clone.

as of 2026-09-03

Fair value per share
$256.43
Upside/downside
12.2%
NTM nGAAP EPS
$9.86
Q2 nGAAP EPS (actual)
$2.22
Applied NTM P/E
26.0
NTM nGAAP net income
$239.5k
NTM nGAAP EBITDA
$288.8k
NTM free cash flow
$215.6k
Implied equity value
$6.2M

Capitalization

24,285.00M shares

Market

228.52$/share
Latest NVDA quote · updated Oct 13, 2026 5:59 PM MDT

Q2 P&L

75.0%
8.23$B
0.30$B
96.20$B
16.0%

Valuation

1.11
0.00x
26.00x

Sources

  1. Q2 FY27 (ended 26 Jul 2026): revenue $96.221B (+18% q/q, +106% y/y), Data Center $89.0B, GAAP/nGAAP GM both 75.0%, GAAP EPS $2.46 vs nGAAP EPS $2.22 on 24,285M diluted shares; nGAAP NI $53.954B, nGAAP opex $8.232B, nGAAP other income $300M. nGAAP includes SBC. GAAP other income includes $7.771B equity-security gains. Q3 FY27 guide: revenue $108.0B +/-2% with zero China Data Center compute, GAAP/nGAAP GM 74.0% +/-50bp, GAAP/nGAAP opex ~$9.2B/$9.0B. FY27 tax 16-18%. — sec.gov (accessed 2026-08-28)
  2. Q2 nGAAP other income $300M; nGAAP tax 16.0% (GAAP 16.5%); cash + marketable debt securities $56.6B; FCF $21.341B; ~$26.0B returned to shareholders in Q2; DSO 60 days; Hopper to China <1% of Data Center. Hyperscale $48.710B +13% q/q; ACIE $40.313B +25% q/q. Notes $25.0B issued in Q2. PORTS-Pike / SB Energy guarantees capped at $105B, first RFS FY2029; other land/power/shell guarantees $3.5B; total $108.5B. Q3 guide repeats $108.0B +/-2%, GM 74.0% +/-50bp, nGAAP opex $9.0B, zero China DC compute. — sec.gov (accessed 2026-08-28)
  3. Q2 FY27 10-Q: diluted WAS 24,285 million; basic WAS 24,190 million; shares outstanding 24.1B as of 21 Aug 2026 and 24,147M at 26 Jul 2026. Cash $22.443B, marketable debt securities $34.143B, ST debt $1.000B, LT debt $32.366B. June 2026 notes $25.0B across seven tranches. SB Energy PORTS (Pike County, Ohio) guarantees capped at $105B for ~4.25 GW; first phase expected FY2029; option ~3.8 GW more. EX-10.1 form of residual value guaranty restates the $105B related-guaranty cap. FY2027 is a 53-week year; Q4 FY27 is 14 weeks. — sec.gov (accessed 2026-08-28)
  4. June 2026 notes offering completed: $3.5B 4.250% 2028 + $3.5B 4.350% 2029 + $4.0B 4.500% 2031 + $3.5B 4.750% 2033 + $4.0B 4.950% 2036 + $3.0B 5.550% 2046 + $3.5B 5.625% 2056 = $25.0B aggregate principal. Q2 10-Q confirms issuance of $25.0B senior unsecured notes in Q2. — sec.gov (accessed 2026-08-28)
  5. 17 Aug 2026 8-K: residual value guaranties on ~4.25 GW IT load at PORTS-Pike; NVIDIA aggregate payment obligation cumulatively capped at $105B for the initial commitment; OpenAI is tenant. Q2 10-Q and CFO commentary update first ready-for-service to fiscal 2029 (phased) and keep the $105B cap; option ~3.8 GW unchanged. — sec.gov (accessed 2026-08-28)
  6. Company Q2 FY27 newsroom release confirming $96.2B revenue, $2.22 nGAAP EPS, ~$26.0B returned, $99.0B remaining buyback authorization, $0.25 dividend, and Q3 $108.0B +/-2% guide with 74.0% GM and zero China DC compute. — nvidianews.nvidia.com (accessed 2026-08-28)
  7. Q2 FY27 call (26 Aug 2026): FY2028 revenue growth ~70% and supply-constrained (customer forecasts point to doubling). Vera Rubin production shipments commenced this month; ~20% of Data Center revenue in Q3. AWS additional 2 million GPUs this quarter through Q2 FY29 plus Vera CPUs. Q3 sequential growth primarily ACIE; hyperscale re-accelerates in Q4 and FY2028 as Rubin supply grows. GAAP/nGAAP GM expected to bottom in Q4 in the 71-72% range before settling at 72-73% in FY2028. Networking +18% q/q; Spectrum-X 2.6x y/y. — investor.nvidia.com (accessed 2026-08-28)
  8. 2 Sep 2026 definitive agreement to acquire Hugging Face, Inc.: ~$11.9B purchase price to Hugging Face stockholders (subject to adjustments) plus equity-based retention of up to ~$1.0B for Hugging Face employees joining NVIDIA. Expected close H1 2027 subject to customary conditions including regulatory approvals. NVIDIA committed to keep Hugging Face platform open (upload/download of models/datasets; support for other silicon vendors). — sec.gov (accessed 2026-09-03)

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