Over the past five years, Nvidia (NVDA 2.33%) stock has risen in value by nearly 1,500%, making it one of the most valuable companies in the world. Think it's too late to benefit as an investor? Think again. According to the charts below, shares remain very attractive for long-term investors.

Nvidia stock is affordable according to these numbers

On a price-to-sales basis, Nvidia shares look outrageously expensive. Shares trade at 21 times sales despite a market cap of around $3 trillion. Few companies in history this large have traded at such a high premium. But because Nvidia is a profitable business, we can also look at shares on a price-to-earnings basis. From this perspective, shares don't look nearly as expensive. And when it comes to shareholder returns, profits matter a lot more than sales.

NVDA Revenue Growth Estimate for Current Fiscal Year data by YCharts

Right now, the S&P 500 as a whole trades at 28 times earnings. Nvidia stock trades at a 35% premium to the market overall -- not bad for a highly profitable business at the center of one of the biggest growth markets in history: artificial intelligence (AI). But because its sales are still growing at 50% or more per year, Nvidia stock trades at just 25 times forward earnings -- that is, based on what analysts expect the company to earn over the next 12 months. The S&P 500's forward price-to-earnings ratio, meanwhile, is around 20, meaning Nvidia trades at just a 25% premium to the market on a forward basis.

Image source: Getty Images.

As you can see, Nvidia's fast growth should significantly reduce the stock's valuation premium over the next 12 months. And given the growth in AI demand, this premium should shrink for many years to come. Eventually, Nvidia shares could trade at a discount to the market based on today's prices. That will require patience to play out, but one thing is clear: From an earnings perspective, Nvidia is hardly overvalued.