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John Lenahan CM8966

Kit Kwan HV6255

Finance 4300

Finance Group Project

Our original stock price we calculated was $33.81 and NVIDIA’s stock price is

$30.27. To adjust our figures to the stock price we adjusted our growth estimation

from 25% to 23.5% and adjusted our cost growth to 24%.

We wanted to better show the company’s growth and thought our previous

growth estimation was high. We feel that a growth rate of 23.5% better represents

the industry since it is a volatile technological company. We also feel that cost was

not properly represented through the standard growth model because of the

increased cost of research and development in our industry, thus we adjusted our

cost growth to 24% or .5% higher than the supernormal growth.

NVIDIA is in a highly volatile industry with a beta of 2.61 compared to other

similar companies such as AMD with a beta of 1.86 and Intel with a beta of 1.63.

The stock price has been equally as volatile and has ranged from 17.31 to 39.67.

Our growth model attempts to take this into account with a high growth rate.

NVIDIA Corporation (NASDAQ: NVDA) is an American multinational

corporation which specializes in the manufacture of graphics-processor

technologies for computers. The company locates in Santa Clara, California,

has become a major supplier of integrated circuits (ICs) used for personal-

computer motherboard chipsets, graphics processing units (GPUs), and game-

consoles. Notable product lines include the GeForce series for gaming and the

Quadro series for graphics processing on professional workstations, as well

as the nForce series of integrated motherboard-chipsets.