Part 5/11:
However, this growth is reflected in Nvidia’s valuation metrics, which are notably high. Its price-to-free cash flow ratio sits at approximately 77, significantly above the 'normal' range of 20 to 30. This indicates the stock may be expensive relative to its cash-generating capacity—but investors are willing to pay a premium for its growth prospects. The justification lies in Nvidia's fundamentals: robust earnings, dominant industry positioning, innovative product leadership, and a strong balance sheet that enables continued investment in future AI developments.