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Initial Query: Can you perform a DCF analysis of Nvidia stock? Please list out each step of the calculation. | |
Tool Call - Name: duckduckgo_search + Query: {"query":"Nvidia market cap today"} | |
Tool Call - Name: polygon_financials + Query: {"query":"NVDA"} | |
Tool Call - Name: get_date + Query: {} | |
Tool Call - Name: polygon_aggregates + Query: {"ticker":"NVDA","timespan":"day","timespan_multiplier":1,"from_date":"2024-07-19","to_date":"2024-07-19"} | |
Agent Response: ### Step 8: Compare Intrinsic Value with Current Market Price | |
- **Intrinsic Value per Share**: $464.8 | |
- **Current Market Price**: $118.22 | |
### Step 9: Calculate Valuation Percentage | |
Let's calculate how overvalued or undervalued Nvidia stock is by comparing the intrinsic value with the current market price. | |
\[ \text{Valuation Percentage} = \frac{\text{Intrinsic Value} - \text{Current Market Price}}{\text{Intrinsic Value}} \] | |
\[ \text{Valuation Percentage} = \frac{464.8 - 118.22}{464.8} \] | |
\[ \text{Valuation Percentage} = \frac{346.58}{464.8} \] | |
\[ \text{Valuation Percentage} = 0.7455 \text{ or } 74.55\% \] | |
### Conclusion | |
Nvidia stock appears to be **undervalued** by approximately **74.55%** based on the DCF analysis. The intrinsic value per share is $464.8, while the current market price is $118.22. |