3-Statement Model and DCF Valuation of a Company NVIDIA

Abstract: This study focuses on the financial valuation of NVIDIA Corporation using advanced financial modelling and widely accepted valuation techniques. In an increasingly complex and innovation-driven financial environment, traditional backward-looking analysis is insufficient to capture a firm’s true economic value. Therefore, this research adopts a forward-looking approach by integrating an Integrated Three-Statement Financial Model, Discounted Cash Flow (DCF) analysis, and Trading Comparables (Comps) analysis to assess the company’s intrinsic and relative valuation. The study begins with the construction of a comprehensive three-statement model, linking the income statement, balance sheet, and cash flow statement to forecast NVIDIA’s financial performance over a defined period. Based on these projections, free cash flows are estimated and discounted using the Weighted Average Cost of Capital (WACC) to determine the company’s intrinsic value through the DCF method. To enhance the robustness of the valuation, Trading Comparables analysis is employed to benchmark NVIDIA against peer companies in the semiconductor and technology sector.

Keywords: Financial Modelling, Corporate Valuation, Discounted Cash Flow (DCF), Three-Statement Model, Free Cash Flow (FCF), Weighted Average Cost of Capital (WACC), Artificial Intelligence (AI), Financial Forecasting