NVDA May Actually Be a Value Stock
To me a "value" stock isn't one that has a low P/E but a stock whose revenue & earnings justify the the P/E. A stock can be very high P/E and still be a value buy if its earnings and growth justify it.
By overlaying NVDA estimated earnings along with the contracts, we can see a discrepancy between what the option market predicts and what the valuation model predicts.
Here the P/E is reduced from the TTM P/E of 60x to 48x to give some margin of safety. We can see that the price bounces off of the 48x earnings line fairly reliably the last few years.
By plotting the contracts at their strikes and filtering for > 0.5 deltas, we can also see what the options market is thinking.
Strangely... NVDA is simultaneously a meme stock yet also a value stock according to this model...
(disclaimer: long NVDA via deep ITM LEAP calls)
* it's also possible the option market's crowdsourced wisdom is more accurate than the analysts