Shares of Nvidia (NASDAQ: NVDA) have soared big time since the beginning of 2023, clocking astronomic gains of 441% as the stock market has handsomely rewarded the company's outstanding top- and bottom-line growth, but that tremendous rally has made the stock extremely expensive.

Nvidia stock is currently trading at 41 times sales, significantly higher than its five-year average sales multiple of 17.7. Meanwhile, the S 500 index has an average price-to-sales ratio of 2.7. Nvidia's price-to-earnings (P/E) ratio is also quite expensive at 97. The tech-heavy Nasdaq-100 index, of which Nvidia is a part, has an average P/E ratio of 34.

These valuation multiples indicate that Nvidia isn't exactly a value pick right now. However, that's half the story, as a closer look at Nvidia's forward multiples and its potential growth prospects suggests something else.

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Source Fool.com