Ambarella Inc (AMBA) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Ambarella Inc stock (AMBA) is currently trading at $54.09. Ambarella Inc PS ratio (Price-to-Sales) is 6.01. Analyst consensus price target for AMBA is $89.58. WallStSmart rates AMBA as Sell.
- AMBA PE ratio analysis and historical PE chart
- AMBA PS ratio (Price-to-Sales) history and trend
- AMBA intrinsic value — DCF, Graham Number, EPV models
- AMBA stock price prediction 2025 2026 2027 2028 2029 2030
- AMBA fair value vs current price
- AMBA insider transactions and insider buying
- Is AMBA undervalued or overvalued?
- Ambarella Inc financial analysis — revenue, earnings, cash flow
- AMBA Piotroski F-Score and Altman Z-Score
- AMBA analyst price target and Smart Rating
Ambarella Inc
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Smart Analysis
Ambarella Inc (AMBA) · 9 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in revenue growth, institutional own.. Concerns around peg ratio and return on equity. Significant fundamental concerns warrant caution or avoidance.
Ambarella Inc (AMBA) Key Strengths (3)
89.46% of shares held by major funds and institutions
Strong revenue growth at 20.10% annually
Mid-cap company balancing growth potential with stability
Supporting Valuation Data
Ambarella Inc (AMBA) Areas to Watch (6)
Company is destroying shareholder value
Losing money on operations
Company is losing money with a negative profit margin
Very expensive relative to growth, significant premium
Premium valuation at 6.0x annual revenue
Premium pricing at 3.9x book value
Supporting Valuation Data
Ambarella Inc (AMBA) Detailed Analysis Report
Overall Assessment
This company scores 33/100 in our Smart Analysis, earning a F grade. Out of 9 metrics analyzed, 3 register as strengths (avg 8.3/10) while 6 fall into concern territory (avg 1.7/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Institutional Own., Revenue Growth, Market Cap. Growth metrics are encouraging with Revenue Growth at 20.10%.
The Bear Case
The primary concerns are Return on Equity, Operating Margin, Profit Margin. Some valuation metrics including PEG Ratio (4.96), Price/Sales (6.01), Price/Book (3.91) suggest expensive pricing. Profitability pressure is visible in Return on Equity at -13.10%, Operating Margin at -17.10%, Profit Margin at -19.40%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Return on Equity improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at -13.10% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 20.10% strong but requiring continuation.
Risk Considerations
Based on the metric profile, this is a higher risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Fundamental challenges outweigh strengths at current levels. Return on Equity and Operating Margin are the primary drags. Consider waiting for meaningful improvement before committing capital.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
AMBA Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
AMBA's Price-to-Sales ratio of 6.01x trades 42% below its historical average of 10.36x (16th percentile). The current valuation is 85% below its historical high of 39.17x set in Dec 2021, and 107% above its historical low of 2.91x in Oct 2012. Over the past 12 months, the PS ratio has compressed from ~7.6x as trailing revenue scaled faster than the stock price.
Compare AMBA with Competitors
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Data-driven financial summary for Ambarella Inc (AMBA) · TECHNOLOGY › SEMICONDUCTOR EQUIPMENT & MATERIALS
The Big Picture
Ambarella Inc is a strong growth company balancing expansion with improving profitability. Revenue reached 391M with 20% growth year-over-year. The company is currently unprofitable, posting a -19.4% profit margin.
Key Findings
Generating 14M in free cash flow and 19M in operating cash flow. Earnings are translating into actual cash generation.
Debt-to-equity ratio of 0.02 indicates a conservative balance sheet with 174M in cash.
The company is unprofitable with a -19.4% profit margin. The path to breakeven will be the key catalyst.
What to Watch Next
Growth sustainability: can Ambarella Inc maintain 20%+ revenue growth, or will competition slow it down?
Volatility is elevated with a beta of 2.00, so expect amplified moves relative to the broader market.
Sector dynamics: monitor SEMICONDUCTOR EQUIPMENT & MATERIALS industry trends, competitive moves, and regulatory changes that could impact Ambarella Inc.
Bottom Line
Ambarella Inc offers an attractive blend of growth (20% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(44 last 3 months)
| Insider | Type | Shares |
|---|---|---|
JU, CHI-HONG Senior VP, Systems & GM, Asia | Sell | -7,728 |
Data sourced from SEC Form 4 filings
Last updated: 10:07:02 AM
About Ambarella Inc(AMBA)
NASDAQ
TECHNOLOGY
SEMICONDUCTOR EQUIPMENT & MATE...
USA
Ambarella, Inc. develops semiconductor video solutions that enable high definition (HD) and ultra HD compression, image processing, and deep neural network processing globally. The company is headquartered in Santa Clara, California.