Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin66.2%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin62.0%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
A
Years to Pay Off Debt0.6 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt$122.0B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$154.4B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
F
Margin of Safety0.0%
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book19.68x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
A
Free Cash Flow$21.4B
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income4.5%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$63.5B
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
About NVIDIA Corporation
NVIDIA Corporation operates as a data center scale AI infrastructure company in the United States, Taiwan, China, Hong Kong, Europe, and internationally. It operates through Compute & Networking, and Graphics segments. The Compute & Networking segment provides data center accelerated computing and networking platforms and artificial intelligence solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment offers GeForce GPUs for gaming and PCs; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. The company's products are used in gaming, professional visualization, data center, and automotive markets. It sells its products to original equipment manufacturers, original device manufacturers, system integrators and distributors, independent software vendors, cloud service providers, add-in board manufacturers, distributors, automotive manufacturers and tier-1 automotive suppliers, and other ecosystem participants. It has a collaboration with Cisco to develop Ultra-Dense Small Form Factor Pluggable (USFP), a high-density optical module pluggable transceiver. It has a collaboration with ChipAgents to develop Build-A-Chip-Bench, a benchmark for AI agents carrying chip design tasks and The Company has a strategic alliance with MediaTek to build the next generations of AI computing platforms. NVIDIA Corporation was incorporated in 1993 and is headquartered in Santa Clara, California.
NVIDIA Corporation operates as a data center scale AI infrastructure company in the United States, Taiwan, China, Hong Kong, Europe, and internationally. It operates through Compute & Networking, and Graphics segments. The Compute & Networking segment provides data center accelerated computing and networking platforms and artificial intelligence solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment offers GeForce GPUs for gaming and PCs; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. The company's products are used in gaming, professional visualization, data center, and automotive markets. It sells its products to original equipment manufacturers, original device manufacturers, system integrators and distributors, independent software vendors, cloud service providers, add-in board manufacturers, distributors, automotive manufacturers and tier-1 automotive suppliers, and other ecosystem participants. It has a collaboration with Cisco to develop Ultra-Dense Small Form Factor Pluggable (USFP), a high-density optical module pluggable transceiver. It has a collaboration with ChipAgents to develop Build-A-Chip-Bench, a benchmark for AI agents carrying chip design tasks and The Company has a strategic alliance with MediaTek to build the next generations of AI computing platforms. NVIDIA Corporation was incorporated in 1993 and is headquartered in Santa Clara, California.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Margin of Safety
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Mr. Market is currently offering NVIDIA Corporation at $186.64.
The business passes only 3 of 6 of Graham's defensive criteria — well below his required standard.
At $186.64, the stock trades at a 715% premium to its Graham Number of $22.91. Graham would consider this price speculative.
There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.
Trading at 42.5x NCAV. Expected for most quality businesses — NCAV was designed to find depression-era bargains and rarely applies to modern profitable companies..
Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.
Showing Key Metrics
Income Highlights
Metric
Q3 2026
Q4 2025
Gross Profit %
75.0%▲
73.4%
Operating Margin %
66.2%▲
63.2%
Net Income %
62.0%▲
56.0%
Diluted EPS
2.46▲
1.30
Balance Sheet Highlights
Metric
Q3 2026
Q4 2025
Total Assets
$320.3B
$161.1B
Total Debt
$38.4B▲
$10.5B
Working Capital
$154.4B▲
$90.4B
Years to Pay Debt
0.64
0.33
Cash Flow Highlights
Metric
Q3 2026
Q4 2025
Free Cash Flow
$21.4B▼
$22.1B
Owner Earnings
$63.5B
$34.3B
CapEx % of Net Income
4.5%
5.1%
Income Statement
2026
2025
Tax Effect Of Unusual Items
1,282,215
0
Tax Rate For Calcs
0
0
Normalized EBITDA
65,090,000
38,748,000
Total Unusual Items
7,771,000
Total Unusual Items Excluding Goodwill
7,771,000
Net Income From Continuing Operation Net Minority Interest
59,688,000
31,910,000
Reconciled Depreciation
1,127,000
751,000
Reconciled Cost Of Revenue
24,079,000
15,157,000
EBITDA
72,861,000
38,748,000
EBIT
71,734,000
37,997,000
Net Interest Income
269,000
563,000
Interest Expense
227,000
61,000
Interest Income
496,000
624,000
Normalized Income
53,199,215
31,910,000
Net Income From Continuing And Discontinued Operation
59,688,000
31,910,000
Total Expenses
32,487,000
20,996,000
Total Operating Income As Reported
63,734,000
36,010,000
Diluted Average Shares
24,285,000
24,483,000
Basic Average Shares
24,190,000
24,327,000
Diluted EPS
0
0
Basic EPS
0
0
Diluted NI Availto Com Stockholders
59,688,000
31,910,000
Net Income Common Stockholders
59,688,000
31,910,000
Net Income
59,688,000
31,910,000
Net Income Including Noncontrolling Interests
59,688,000
31,910,000
Net Income Continuous Operations
59,688,000
31,910,000
Tax Provision
11,819,000
6,026,000
Pretax Income
71,507,000
37,936,000
Other Income Expense
7,504,000
1,363,000
Other Non Operating Income Expenses
-267,000
1,363,000
Gain On Sale Of Security
7,771,000
Net Non Operating Interest Income Expense
269,000
563,000
Interest Expense Non Operating
227,000
61,000
Interest Income Non Operating
496,000
624,000
Operating Income
63,734,000
36,010,000
Operating Expense
8,408,000
5,839,000
Research And Development
7,054,000
4,705,000
Selling General And Administration
1,354,000
1,134,000
Gross Profit
72,142,000
41,849,000
Cost Of Revenue
24,079,000
15,157,000
Total Revenue
96,221,000
57,006,000
Operating Revenue
96,221,000
57,006,000
Balance Sheet
2026
2025
Ordinary Shares Number
24,147,000
24,305,000
Share Issued
24,147,000
24,305,000
Net Debt
10,923,000
Total Debt
38,351,000
10,481,000
Tangible Book Value
204,861,000
111,700,000
Invested Capital
262,350,000
127,364,000
Working Capital
154,393,000
90,417,000
Net Tangible Assets
204,861,000
111,700,000
Capital Lease Obligations
4,985,000
2,014,000
Common Stock Equity
228,984,000
118,897,000
Total Capitalization
261,350,000
126,365,000
Total Equity Gross Minority Interest
228,984,000
118,897,000
Stockholders Equity
228,984,000
118,897,000
Gains Losses Not Affecting Retained Earnings
-25,000
339,000
Other Equity Adjustments
-25,000
339,000
Retained Earnings
219,157,000
107,908,000
Additional Paid In Capital
9,828,000
10,626,000
Capital Stock
24,000
24,000
Common Stock
24,000
24,000
Total Liabilities Net Minority Interest
91,288,000
42,251,000
Total Non Current Liabilities Net Minority Interest
48,269,000
16,176,000
Other Non Current Liabilities
1,901,000
376,000
Tradeand Other Payables Non Current
5,602,000
3,532,000
Non Current Deferred Liabilities
3,415,000
2,786,000
Non Current Deferred Revenue
1,796,000
1,165,000
Non Current Deferred Taxes Liabilities
1,619,000
1,621,000
Long Term Debt And Capital Lease Obligation
37,351,000
9,482,000
Long Term Capital Lease Obligation
4,985,000
2,014,000
Long Term Debt
32,366,000
7,468,000
Current Liabilities
43,019,000
26,075,000
Other Current Liabilities
2,479,000
1,196,000
Current Deferred Liabilities
4,616,000
1,248,000
Current Deferred Revenue
4,616,000
1,248,000
Current Debt And Capital Lease Obligation
1,000,000
999,000
Current Capital Lease Obligation
Current Debt
1,000,000
999,000
Other Current Borrowings
1,000,000
Current Provisions
2,938,000
2,707,000
Payables And Accrued Expenses
31,986,000
19,925,000
Current Accrued Expenses
11,721,000
8,386,000
Payables
20,265,000
11,539,000
Total Tax Payable
5,206,000
2,915,000
Accounts Payable
15,059,000
8,624,000
Total Assets
320,272,000
161,148,000
Total Non Current Assets
122,860,000
44,656,000
Other Non Current Assets
15,746,000
632,000
Non Current Prepaid Assets
1,536,000
Non Current Deferred Assets
12,159,000
13,674,000
Non Current Deferred Taxes Assets
12,159,000
13,674,000
Non Current Accounts Receivable
1,369,000
Investments And Advances
51,157,000
8,187,000
Investmentin Financial Assets
51,157,000
8,187,000
Available For Sale Securities
51,157,000
8,187,000
Goodwill And Other Intangible Assets
24,123,000
7,197,000
Other Intangible Assets
2,998,000
936,000
Goodwill
21,125,000
6,261,000
Net PPE
19,675,000
12,061,000
Accumulated Depreciation
Gross PPE
19,675,000
12,061,000
Construction In Progress
Other Properties
19,675,000
12,061,000
Machinery Furniture Equipment
Buildings And Improvements
Land And Improvements
Current Assets
197,412,000
116,492,000
Other Current Assets
3,409,000
2,709,000
Restricted Cash
36,900,000
Inventory
31,575,000
19,784,000
Finished Goods
6,857,000
6,840,000
Work In Process
13,377,000
8,735,000
Raw Materials
11,341,000
4,209,000
Receivables
63,059,000
33,391,000
Accounts Receivable
63,059,000
33,391,000
Cash Cash Equivalents And Short Term Investments
62,469,000
60,608,000
Other Short Term Investments
40,026,000
49,122,000
Cash And Cash Equivalents
22,443,000
11,486,000
Cash Flow
2026
2025
Free Cash Flow
21,400,000
22,115,000
Repurchase Of Capital Stock
-19,732,000
-12,456,000
Capital Expenditure
-2,677,000
-1,636,000
Income Tax Paid Supplemental Data
4,858,000
End Cash Position
22,443,000
11,486,000
Beginning Cash Position
13,237,000
11,639,000
Changes In Cash
9,206,000
-153,000
Financing Cash Flow
-6,176,000
-14,880,000
Cash Flow From Continuing Financing Activities
-6,176,000
-14,880,000
Net Other Financing Charges
-5,293,000
-2,453,000
Proceeds From Stock Option Exercised
0
273,000
Cash Dividends Paid
-6,047,000
-244,000
Common Stock Dividend Paid
-6,047,000
-244,000
Net Common Stock Issuance
-19,732,000
-12,456,000
Common Stock Payments
-19,732,000
-12,456,000
Investing Cash Flow
-8,695,000
-9,024,000
Cash Flow From Continuing Investing Activities
-8,695,000
-9,024,000
Net Investment Purchase And Sale
-5,792,000
-6,695,000
Sale Of Investment
31,807,000
2,730,000
Purchase Of Investment
-37,599,000
-9,425,000
Net Business Purchase And Sale
-211,000
-693,000
Purchase Of Business
-211,000
-693,000
Net PPE Purchase And Sale
-2,677,000
-1,636,000
Purchase Of PPE
-2,677,000
-1,636,000
Operating Cash Flow
24,077,000
23,751,000
Cash Flow From Continuing Operating Activities
24,077,000
23,751,000
Change In Working Capital
-30,708,000
-9,256,000
Change In Other Current Liabilities
753,000
332,000
Change In Payables And Accrued Expense
2,167,000
906,000
Change In Accrued Expense
252,000
1,129,000
Change In Payable
1,915,000
-223,000
Change In Account Payable
1,915,000
-223,000
Change In Prepaid Assets
-5,497,000
-89,000
Change In Inventory
-5,784,000
-4,823,000
Change In Receivables
-22,347,000
-5,582,000
Changes In Account Receivables
-22,347,000
-5,582,000
Other Non Cash Items
316,000
-80,000
Stock Based Compensation
2,026,000
1,654,000
Deferred Tax
-602,000
125,000
Deferred Income Tax
-602,000
125,000
Depreciation Amortization Depletion
1,127,000
751,000
Depreciation And Amortization
1,127,000
751,000
Operating Gains Losses
-7,771,000
-1,353,000
Gain Loss On Investment Securities
-7,771,000
-1,353,000
Net Income From Continuing Operations
59,689,000
31,910,000
📊Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $46.7B▲ $96.2B+105.9%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 72.4%▲ 75.0%+2.6pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: 136.3%▲ 66.2%-70.1pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: 56.5%▲ 62.0%+5.5pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$96.2B/qtr (≈$384.9B ann.)
vs > $1.5B annualised revenue
✅ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
4.59x current ratio
vs ≥ 2.0x
✅ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
$21.4B
vs Positive
Operating Cash Flow
$24.1B
Latest quarter · Buffett's cash reality check
ROIC
18.2%
Based on latest annual operating income
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Market Cap / Net Assets
19.7x
Net Assets: $229.0B
Asset Context — Semiconductors
This company's primary assets are likely intangible (brand, IP, talent, network effects) and don't appear on the balance sheet. Net Assets may significantly understate intrinsic value. ROIC and free cash flow are more reliable indicators of business quality.
⚠️Revenue grew vs prior year but operating margin contracted. Possible explanations: deliberate investment in growth (hiring, marketing, R&D), input cost inflation, or pricing pressure from competition. Buffett distinguishes between spending that builds moat vs. spending that doesn't.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
4.01%
Moderate — some alignment with shareholders
Return on Equity (ROE)
26.1%
Excellent — management generates strong returns on equity
Return on Assets (ROA)
18.6%
Strong — management uses assets efficiently
Share Buybacks (Latest Year)
$40.1B
Management is returning capital to shareholders via buybacks
Debt Trend YoY
+210.6% YoY
Debt is growing — management is leveraging up
Leadership Team
Jen-Hsun Huang
Co-Founder, CEO & Director
Age 62
Pay: $11,543,318
0.019% of net income
Colette Kress
Executive VP & CFO
Age 58
Pay: $1,514,979
0.003% of net income
Debora Shoquist
Executive Vice President of Operations
Age 70
Pay: $1,382,223
0.002% of net income
Chris Malachowsky
Co-Founder
Pay: $320,000
0.001% of net income
Toshiya Hari
Vice President of Investor Relations & Strategic Finance
Top Institutional Holders
Institution
% Owned
Shares
Blackrock Inc.
8.06%
1,941,918,386
Vanguard Capital Management LLC
6.39%
1,540,816,358
FMR, LLC
4.26%
1,026,051,548
State Street Corporation
4.19%
1,009,783,437
Geode Capital Management, LLC
2.52%
606,216,492
Vanguard Portfolio Management LLC
2.15%
517,816,949
JPMORGAN CHASE & CO
1.86%
449,404,578
Price (T.Rowe) Associates Inc
1.53%
369,829,781
⚠️Very high beta — extreme price volatility
Risk Analysis
Beta (Market Risk)
2.25
High volatility — moves more than the market
Short Interest
1.3% of float
Low short interest — market is not heavily bearish
Debt-to-Equity
0.17x
Conservative balance sheet — low financial risk
Current Ratio
4.59x
Strong liquidity — Graham approved
52-Week Price Range
Low: $164.27Current: $186.64High: $243.37
Currently at 28% of 52-week range
NVIDIA Corporation (NVDA) fundamental analysis — Overall grade B based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: $22.91. Margin of safety: 0%. Gross profit margin: 75.0%. Operating margin: 66.2%. Net margin: 62.0%. Market cap: $4,506.8B. Sector: Technology. Industry: Semiconductors. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
Disclaimer: 360investing is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice. All data is sourced from public third-party providers
and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
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