One thing to note is that NVIDIA Corporation (NASDAQ:NVDA)’s earnings are temporarily depressed due to current weakness in Tegra sales. Tegra sales should pick up in the second half and beyond as the Tegra 4 starts showing up in devices, so the true numbers may be even lower.
The bottom line
It’s important to consider the cash residing on companies’ balance sheets while researching investment opportunities. This cash has the ability to greatly alter common valuation metrics and make stocks far more attractive than they initially appear, as with all three of the companies above.
The article 3 Companies That Are Cheaper Than They Appear originally appeared on Fool.com and is written by Timothy Green.
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