Moat and management scores of 100 point to a business with few peers in its category. Return on invested capital of 62.9 percent, gross margin of 71.1 percent, and debt to equity of just 0.1x describe a company generating high returns on capital while carrying almost no leverage. Those are the qualities the two top scores are measuring, and the underlying figures support them plainly.
The margin of safety score of 45 tells a different story. The current price sits well above every valuation anchor here, including the consensus buy price of $97.95, the margin of safety price of $97.95, the 10-cap price of $49.63, and the payback time price of $78.34. The model arrived at these anchors using a capped growth rate of 15 percent, well below the 67 percent growth rate measured from the company's own history, a deliberate conservatism rather than a reflection of weaker prospects.
The tension is between a business whose operating figures are about as strong as this framework can register, and a price that already sits far above what even a conservative version of that strength justifies on these anchors.
| Price | $222.27 |
| Market cap | $5.4T |
| P/E ratio | 28.1x |
| Return on invested capital | 62.9% |
| Gross margin | 71.1% |
| Debt to equity | 0.07x |
| Free cash flow yield | 2.1% |
| Growth rate used | 15.0% |
| Growth rate measured | 67.0% |
| Exit multiple assumed | 30.0x |
| Company | Moat | Mgmt | Margin of safety |
|---|---|---|---|
| Broadcom Inc. (AVGO) | 99 | 98 | 33 |
| Micron Technology (MU) | 62 | 70 | 38 |
| Advanced Micro Devices (AMD) | 91 | 75 | 10 |
| Intel Corporation (INTC) | 24 | 39 | 0 |
Every number above is built on assumptions that can be changed. In Moatly you can move the growth rate, the exit multiple and the margin of safety and watch every figure recalculate, so you are testing your own view of NVIDIA Corporation rather than accepting ours.