NVDA - Risk

Pure Price Volatility Risk (Market Swings)

The business itself is financially solid (Financial Health 100/100, minimal insolvency risk). The high overall score (7/7) is driven primarily by extreme stock price swings (±51.9% p.a.) and steep historical drawdowns.

Volatility Risk

Transparent evaluation of price volatility (SRI), Beta, and historical drawdowns.

Volatility Risk Score

7/7 Very High

7 / 7 SRI Price Fluctuation & Beta

Very high volatility or fundamental risks. Significant loss potential; strictly for aggressive investors. Moves approx. 2.2x as much as the broader market.

Beta (Market Relation)

2.22x

Above average

Volatility (5Y p.a.)

51.9% p.a.

5-Year Horizon

Max Drawdown (5Y)

-66.4%

5-Year Horizon

Sharpe Ratio

1.14

Return / Risk

Speculative / High Risk: Score Basis:

Multi-Horizon Risk & Performance Matrix

Historical volatility, drawdowns, and risk-adjusted return across 1, 3, 5, and 10 years.

High Volatility

Timeframe	Volatility (p.a.)	Max Drawdown	Sharpe Ratio	Return (p.a.)
1 Year	—	—	—	+21.9%
3 Years	46.8%	-36.9%	1.49	+72%
5 Years	51.9%	-66.4%	1.14	+61.7%
10 Years	50.0%	-66.4%	1.22	+63.6%

Automated Risk & Health Notes (Red Flags)

Single Stock Risk: Investing in an individual stock carries full company and insolvency risk (no fund diversification).

Exemplary balance sheet strength: Very solid ratio of equity to debt.

High market risk: Beta of 2.22 indicates above-average volatility compared to the broader market.

Structurally High Volatility: Above-average fluctuations persist across 5 to 10 years (51.9% p.a.).

Historical Stress Test: Maximum peak-to-trough drawdown of -66.4% in the extended horizon.

Corporate Governance & ISS Scores

Shareholder rights, board structure and audit safety (Scale 1 = Low Risk, 10 = High Risk)

Overall Governance Risk

8 ISS Score: 8 / 10

Audit Risk

5 ISS Score: 5 / 10

Board Risk

10 ISS Score: 10 / 10

Short Ratio

2.29