Nvidia Stock Is Now Cheaper Than Coca-Cola. Here's the Math.
Yahoo Finance ·
Here is a sentence that shouldn't be possible. Nvidia ( NVDA 1.39% ) , the most valuable company in the world, is now cheaper than Coca-Cola ( KO +3.51% ) -- at least by the measure investors lean on most when they're paying for future profits. As of this writing, Nvidia trades at about 22 times forward earnings. Coca-Cola trades at about 26 times. The two stocks arrived at this inversion from opposite directions. Coca-Cola closed Thursday at $84.14, a record high, after rising about 20% in 2026. Nvidia sits roughly 18% below its 52-week high after months of investor second-guessing about how long the artificial intelligence (AI) spending boom can run. The divergence sharpened this week: on Thursday alone, Coca-Cola jumped 3.5% to its record while Nvidia slipped. The forward price-to-earnings ratio measures a stock's price as a multiple of the consensus forecast for its earnings per share over the next 12 months. It's a useful yardstick for comparing two very different businesses, because it puts the two businesses in the context of their future earnings potential.
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