In the past five years, Nvidia (NASDAQ: NVDA) The value of the stock has increased by nearly 1,500%, making it one of the most valuable companies in the world. Think it's too late to benefit investors? Think about it. According to the chart below, stocks are still very attractive for long-term investors.

NVIDIA shares look very expensive on price to sales. Despite its market capitalization of about $3 trillion, stock sales are 21 times. Few companies have ever traded at such a high premium. However, since NVIDIA is a profitable business, we can also study stocks based on a price-to-earnings ratio. From this perspective, stocks don't look that expensive. When it comes to shareholder returns, profit is much more important than sales.

Where to invest $1,000 now? Our team of analysts just revealed what they think is 10 Best Stocks Buy it now. continue"

Now, S&P 500 Overall, trade at 28 times the yield. The overall transaction volume of NVIDIA stock is 35% - one of the centers of one of the largest growth markets in history: one of the centers of artificial intelligence (AI), which is not bad. However, as its sales still grow at a price of 50% or more per year, NVIDIA shares traded only 25 times forward earnings, that is, based on the earnings analysts expect the company to earn in the next 12 months. Meanwhile, the forward value ratio of the S&P 500 is about 20, meaning that NVIDIA's trading is only on a 25% market premium on the forward-based one.

As you can see, NVIDIA's rapid growth should significantly reduce the stock valuation premium over the next 12 months. Given the growing demand for AI, this premium should shrink in many years to come. Ultimately, NVIDIA shares can be Discount To the market according to today's prices. This requires patience to work, but it is obvious: Nvidia is hardly overrated from an income standpoint.

Ever felt you missed the ship to buy the most successful stock? Then you will need to hear this.

On rare occasions, our team of analysts and experts published "Double Down" stock Suggest companies they think are about to be popular. If you are worried that you have missed the opportunity to invest, now is the best time to buy before it’s too late. Numbers talk to themselves: