Ambarella, Inc.

NasdaqGS:AMBA Stock Report

Market Cap: US$3.6b

Ambarella Valuation

Is AMBA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of AMBA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

US$64.76
Fair Value
31.3% overvalued intrinsic discount
12
Number of Analysts

Below Fair Value: AMBA ($84.28) is trading above our estimate of fair value ($64.73)

Significantly Below Fair Value: AMBA is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AMBA?

Key metric: As AMBA is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for AMBA. This is calculated by dividing AMBA's market cap by their current revenue.
What is AMBA's PS Ratio?
PS Ratio10.3x
SalesUS$348.05m
Market CapUS$3.63b

Price to Sales Ratio vs Peers

How does AMBA's PS Ratio compare to its peers?

The above table shows the PS ratio for AMBA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.7x
SIMO Silicon Motion Technology
4.2x14.95%US$3.2b
ALGM Allegro MicroSystems
6.7x16.29%US$5.2b
SLAB Silicon Laboratories
6.3x17.63%US$4.4b
DIOD Diodes
1.8x8.26%US$2.4b
AMBA Ambarella
10.3x12.41%US$3.6b

Price-To-Sales vs Peers: AMBA is expensive based on its Price-To-Sales Ratio (10.3x) compared to the peer average (4.7x).

Price to Sales Ratio vs Industry

How does AMBA's PS Ratio compare vs other companies in the US Semiconductor Industry?

15 CompaniesPrice / SalesEstimated GrowthMarket Cap
UCTT Ultra Clean Holdings
0.6x9.32%US$1.29b
JKS JinkoSolar Holding
0.1x12.99%US$1.25b
PENG Penguin Solutions
0.8x9.86%US$1.19b
CSIQ Canadian Solar
0.2x10.88%US$956.88m
AMBA 10.3xIndustry Avg. 4.9xNo. of Companies15PS048121620+
15 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: AMBA is expensive based on its Price-To-Sales Ratio (10.3x) compared to the US Semiconductor industry average (4.9x).

Price to Sales Ratio vs Fair Ratio

What is AMBA's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AMBA PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio10.3x
Fair PS Ratio5.5x

Price-To-Sales vs Fair Ratio: AMBA is expensive based on its Price-To-Sales Ratio (10.3x) compared to the estimated Fair Price-To-Sales Ratio (5.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst AMBA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$84.28
US$90.05
+6.85%
17.83%US$105.00US$49.60n/a12
Oct ’26US$85.08
US$90.05
+5.84%
17.83%US$105.00US$49.60n/a12
Sep ’26US$82.48
US$90.05
+9.18%
17.83%US$105.00US$49.60n/a12
Aug ’26US$63.74
US$77.72
+21.93%
17.82%US$95.00US$49.60n/a12
Jul ’26US$64.44
US$76.47
+18.66%
18.06%US$95.00US$49.60n/a12
Jun ’26US$52.64
US$76.47
+45.26%
18.06%US$95.00US$49.60n/a12
May ’26US$48.16
US$79.72
+65.52%
22.97%US$110.00US$49.60n/a12
Apr ’26US$50.46
US$93.64
+85.57%
10.46%US$110.00US$75.00n/a11
Mar ’26US$61.43
US$93.64
+52.43%
10.46%US$110.00US$75.00n/a11
Feb ’26US$76.72
US$90.91
+18.49%
10.70%US$100.00US$70.00n/a11
Jan ’26US$72.74
US$89.55
+23.10%
10.50%US$100.00US$70.00n/a11
Dec ’25US$71.55
US$88.18
+23.25%
13.08%US$100.00US$65.00n/a11
Nov ’25US$57.87
US$74.55
+28.82%
13.72%US$90.00US$57.00n/a11
Oct ’25US$54.22
US$76.25
+40.63%
13.30%US$90.00US$57.00US$85.0812
Sep ’25US$59.70
US$76.15
+27.56%
12.80%US$90.00US$57.00US$82.4813
Aug ’25US$47.82
US$73.62
+53.94%
15.02%US$90.00US$50.00US$63.7413
Jul ’25US$53.61
US$72.29
+34.84%
16.16%US$90.00US$50.00US$64.4414
Jun ’25US$58.26
US$72.29
+24.07%
16.16%US$90.00US$50.00US$52.6414
May ’25US$45.56
US$72.61
+59.36%
14.97%US$90.00US$50.00US$48.1615
Apr ’25US$50.09
US$74.47
+48.68%
11.38%US$90.00US$62.00US$50.4615
Mar ’25US$57.16
US$74.47
+30.29%
11.38%US$90.00US$62.00US$61.4315
Feb ’25US$51.92
US$72.32
+39.29%
13.26%US$90.00US$58.00US$76.7216
Jan ’25US$61.29
US$73.63
+20.13%
13.38%US$90.00US$58.00US$72.7416
Dec ’24US$58.51
US$75.18
+28.48%
16.47%US$105.00US$58.00US$71.5517
Nov ’24US$45.16
US$75.06
+66.21%
17.08%US$105.00US$58.00US$57.8717
Oct ’24US$53.03
US$78.71
+48.42%
15.50%US$105.00US$58.00US$54.2217
US$90.05
Fair Value
5.6% undervalued intrinsic discount
12
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/10/09 21:54
End of Day Share Price 2025/10/09 00:00
Earnings2025/07/31
Annual Earnings2025/01/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Ambarella, Inc. is covered by 27 analysts. 14 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Tayla-Blair BothaArete Research Services LLP
Alexi UngerArete Research Services LLP
David WilliamsAscendiant Capital Markets LLC