* Note: Prices are in Million (M) USD.
Description:
Ambarella, Inc. is a leading semiconductor company based in Santa Clara, California, specializing in advanced video compression and image processing technologies, with a strong focus on high-definition and ultra HD solutions. The company leverages its expertise in deep neural network processing to enhance video quality, serving a wide array of sectors including security, automotive, and consumer electronics. As a frontrunner in the rapidly evolving domains of artificial intelligence and computer vision, Ambarella is well-positioned to capture significant growth opportunities, reinforcing its appeal as a compelling investment for institutional investors.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $174 M
Debt : $2 M
EBITDA : $-72 M
Since Ebitda is less than 0, 0 points assigned.
This criteria used industry in which company operates:
Sector: Manufacturing
Industry: Semiconductors & related devices
Based on industry, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Message: Cannot calculate PE Ratio since EPS is either 0 or negative.
Using default values for calculation.
Forward PE Ratio (using default values): 20.00
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 16 overlapping fiscal years (max 20).Average Free Cash Flow: $39 M
Average Revenue: $221 M
Revenue Converted To Free Cash Flow (%): 17.4%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 15, 3 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-01-31): $285 M
Revenue 5 Years Ago (2020-01-31): $229 M
Total Growth over 5 Years: 24.5%
5-Year Revenue CAGR (Historical): 4.5%
Forward 5-Year CAGR (Tapered): 4.0%
Since historical Revenue CAGR is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2025-01-31): $41 M
Share Count 5 Years Ago (2021-01-31): $35 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $0.00
Trailing 12-Month Earnings Per Share (EPS): $0.00
Average Earnings Per Share (EPS): $0.00
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0.00%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 14 valid ROE years (max 20).Average ROE: 10.6%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $64.04
52-Week Low: $38.86
Threshold Price (15% Above 52-Week Low): $44.69
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $2,837 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
Owners' Earnings (FCF/Share) (TTM ending 2025-10-31): $1.55
Owners' Earnings (FCF/Share, latest positive annual) (2025-01-31): $0.57
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 15 points to above Ambarella Inc (AMBA) stock.
Last 5 Years Avg PE 25.54, Fair Value PE 20, Industry Based PE 25, Growth Based PE 15, RCFC Based PE 17.4, ROE Based PE 10.58, Risk-Free Anchored PE (25% MoS) 18.12. Based on these 7 values, average assigned is 18.81. The fair value of Ambarella Inc (AMBA) stock cannot be calculated since EBITDA and EPS are either 0 or negative.
