Nvidia's forward PE ratio tumbles to lowest in eight months

REUTERS/Ann Wang/File Photo Acquire Licensing RightsAug 28 (Reuters) - Increased analysts' estimates since Nvidia's (NVDA.O) strong quarterly report last week have left the world's most valuable chipmaker trading at its lowest forward earnings multiple in eight months. Nvidia's forward earnings valuation plungesAt that price, Nvidia shares are trading at the equivalent of around 33 times expected earnings over the next 12 months, according to Refinitiv data. That forward PE compares to over 46 a week ago, and it is now at its lowest since December 2022. Price/earnings ratios help investors gauge the value of companies, but relying on analysts' estimates of future earnings creates uncertainty. Following its report, analysts on average expect Nvidia's revenue for the fiscal year ending in January 2024 to reach $53 billion, nearly double the previous year, according to Refinitiv data.