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This is Scott Becker with the Becker Business and the Becker Private Equity Podcast. We try and bring you one to two business and market insight episode today, plus often an interview with a business leader at the Becker Business and the Becker Private Equity Podcast. Today's discussion comes out of two recent articles we've read Is Nvidia undervalued? So here's the concept. The concept is that Nvidia is valued about 4.5 trillion. And there's a couple different articles. There's one in the motley fool, there's one in another business magazine that I read this weekend. I can't remember where it was at but but the one article said which company is the most likely to get to 10 trillion market value and Nvidia is it currently at 4.5 trillion. The Motley fool article went through this concept that essentially even though Nvidia is so highly valued that it's it's creating one great cash flow. 85 billion a year in free cash flow, which is a remarkable number, almost as much as cut produces each year that it's also trading at a price to earnings ratio of 45, which is a high number but not an insane number for a tech stock. But it's forward PE based on expected earnings is about 25. And so when you look at its growth and it's got tremendous growth and its revenues and profits, it's still growing at tremendous numbers, not flat numbers at all. When you look at its growth numbers compared to Amazon, compared to almost all the other magnificent seven in other companies, its growth rates are still incredibly fast, at least at this point. So the concept is, the concept of the article is even though Nvidia is the highest market cap company in the world, followed by Apple and then Google, then Microsoft and so forth, that even though that's the case, it may still be considered undervalued. I thought the premise I had to read the two articles. I had to understand it better. I thought the premise made a lot of sense. I was actually sort of blown away by the the thinking in the articles. Now I'm not an investment advisor. I do enough investing on our own accounts. My best investments are typically my index fund investings versus individual stock investing. But at some point we'll take a swimming at the plate. We've already done so to own a little bit of Nvidia, a little bit of Alphabet Google, which we're following like crazy as well. I am probably buying too late in those two things, but I do find them fascinating. Again, thank you for listening to the Becker Business and the Becker Private Equity Podcast. If you get a chance, go to Amazon, buy our newest book on Amazon, Building Great Businesses, Create Momentum, Overcome Setbacks and Scale With Confidence. Also, if you're the first person to listen to this episode all the way through and you text me podcast or something of the sort of we will send you a $50Amazon gift certificate. Thank you for listening to the Becker Business and the Becker Private Equity Podcast. And thank you very much to our remarkable producer, Chanel Bunger, who is just fantastic every single day. Thank you very much.
