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REDDIT

NVDA earnings expectations are way too high

Just saw on Bloomberg - NVDA is “cheapest in a while” because p/e is “30”. This market is still euphoric - I guarantee many analysts have not been phased by the deep seek news - after this news every single person should have become skeptical of using forward p/e or as mentioned on Bloomberg “p/e”.

What is trailing p/e vs forward p/e?

p/e represents the multiple that investors pay for each $ of company earnings

Trailing uses last years REAL earnings, for NVDA this is at ~50 (currently about +10 or more higher than all other stocks besides Tesla- which btw is still just a car company- check their income statement.

Forward uses PROJECTED EARNINGS - this is your 30 p/e and if you’re no skeptical about this after the deep seek news

EUPHORIA