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AMBA Stock Analysis

NMS · Technology · Semiconductor Equipment & Materials

$69.39

-3.29 (-4.53%)

AMBA Interactive Price Chart & Trading Signals

AMBA Stock Snapshot — Valuation, Risk & Technical Signals

AMBA Key Fundamentals, Analyst Targets & Company Profile

Key Financial Ratios

Market Cap

$3.06B

P/E Ratio

—

Forward P/E

61.92

PEG Ratio

2.28

P/B Ratio

4.94

EPS

$-1.30

Dividend Yield

—

52W Range

$48.30 – $96.69

Beta

2.09

Volume

0.6M

ROE

-9.4%

Profit Margin

-13.5%

Revenue Growth

13.2%

Gross Margin

58.5%

EV/EBITDA

-60.31

Analyst Target

$89.36

Forward P/E of 61.9x suggests earnings compression ahead. Price-to-book is 4.94x. Market capitalization is $3.06B. Revenue is growing at 13.2% on a trailing basis. Beta of 2.09 indicates elevated market sensitivity.

Analyst Consensus

Recommendation

Buy

Low Target

$65.00

Mean Target

$89.36

High Target

$120.00

Based on 11 analysts

About AMBA

Ambarella, Inc. develops low-power system-on-a-chip, semiconductors, and software for edge and physical artificial intelligence, applications, and intelligent automation. The company's system-on-a-chip (SOC) integrates third generation CVflow technology with advanced video processing, image signal processing, audio processing, and system control functions on a single chip. It also offers central domain controllers, CVflow SoCs, AI neural processors, vision processor SoCs, high-definition radars, and serializer/deserializers, as well as licenses software modules. The company's solutions are used in automotive video recorders, electronic mirrors, front advanced driver assistance system camera, AI Telematics Systems, and cabin monitoring system and driver monitoring system cameras in automotive field; central domain controllers for autonomous vehicles in autonomy; enterprise and public class, and home security cameras in the field of IoT; and enterprise, home, public spaces, and consumer applications, as well as for video conferencing, access control, healthcare, medical, and virtual reality applications. It sells its solutions to original design manufacturers, original equipment manufacturers, automotive market, and Tier-1 suppliers through its direct sales force and distributors. The company operates in Taiwan, rest of the Asia Pacific, Europe, the United States, and rest of North America. Ambarella, Inc. was incorporated in 2004 and is headquartered in Santa Clara, California.

United States959 employeesWebsite ↗

AMBA Deep Dive Analysis

Bottom Line

Verdict

Overvalued

Best for

Higher-risk tolerance investors

Watch out for

Premium valuation, High volatility

Non-zero inputs

3/5

Counts non-zero values for price, P/E, beta, macro risk, and revenue growth; zero may mean unavailable or be a genuine zero.

Ambarella, Inc. (AMBA) trades above our multi-model fair value estimate of $40.89 by approximately 41.1%. Recent growth metrics show revenue growth of 13.2%. Risk profile: elevated market beta of 2.09. Consensus: buy.

Valuation, Growth & Risk

Valuation

Overvalued

Price is above what fundamentals suggest.

Growth

Expanding

Rev 13.2%

Revenue is outpacing the market.

Risk

Elevated

Beta 2.09

Expect bigger swings than the market.

Valuation Snapshot

Ambarella, Inc. (AMBA) trades above our multi-model fair value estimate of $40.89 by approximately 41.1%. Forward P/E of 61.9x indicates stable forward expectations. Price-to-sales is 7.3x. Price-to-book is 4.9x. Market capitalization is $3.06B.

Why it matters: Paying a premium works only if the company keeps growing faster than expected.

Growth & Profitability

Revenue is growing at 13.2% on a trailing basis.

Why it matters: Growing revenue with healthy margins usually means the business is gaining market share or pricing power.

Risk Profile

Beta of 2.09 indicates elevated market sensitivity. Net debt position is $-259690000.00.

Why it matters: A riskier stock can fall more in a downturn. Make sure your portfolio can handle the volatility.

Analyst Context

Analyst consensus target of $89.36 implies 28.8% upside. Target range spans $65.00 to $120.00. 11 analysts cover the stock. Consensus recommendation: buy.

Why it matters: Analyst targets reflect what professionals expect over 12 months. A wide gap between price and target can mean the market disagrees with the consensus.

Data Methodology & Sources

Market Data (Facts)

  • Price, volume, and market cap: Yahoo Finance (may be delayed)
  • P/E, EPS, revenue, and debt: Yahoo Finance fundamentals
  • Analyst estimates: Yahoo Finance (coverage and update times vary)
  • Insider transactions: Yahoo Finance (reporting may be delayed)

QuantSoar Model (Derived)

  • Fair value: available outputs from seven models; outliers are filtered using MAD (k=3.5), then combined with fixed model weights.
  • Margin of Safety = (Fair Value − Displayed Price) / Displayed Price × 100
  • Composite Score: 40% Value + 30% Momentum + 30% Risk
  • Verdict Gauge: Base 50 + Valuation (up to ±25) + Whale sentiment (up to ±10) + Insider buying (+5) + Macro risk (up to ±10) + Technical signal (up to ±10). Analyst consensus is separate.

Model outputs are estimates based on available data and are not investment advice. Cross-check with primary sources before making investment decisions.

AMBA Overvalued

Ambarella, Inc. (AMBA) trades above our multi-model fair value estimate of $40.89 by approximately 41.1%.

Frequently Asked Questions

ValuationIs AMBA stock overvalued right now?
Based on our discounted cash flow and relative valuation models, AMBA appears to trade above fair value by approximately 41.1%. This suggests the market may be pricing in elevated growth expectations or sentiment premiums.
ValuationWhat is AMBA fair value based on current fundamentals?
Our fair value estimate for AMBA is $40.89, derived from discounted cash flow, dividend discount, and relative valuation multiples. The estimate assumes a discount rate of 9.0% and terminal growth of 2.5%.
RiskHow risky is AMBA compared with other stocks?
Risk profile for AMBA: a beta of 2.09 indicates above-average market sensitivity. Investors should weigh macro exposure against their own risk tolerance.
GrowthIs AMBA still growing?
Latest trailing metrics show revenue growth of 13.2%. Profit margins are not available.
AnalystWhat do analysts think about AMBA?
Analyst consensus target is $89.36, implying 28.8% upside. The street recommendation is "buy".
CatalystWhat could change the investment case for AMBA?
Key catalysts include Technology sector dynamics, interest rate shifts, and company-specific earnings surprises. Monitor macro risk scores and analyst estimate revisions for early signals.

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About the Author

Phasakorn Traklang (Peach) — Founder

Phasakorn Traklang (Peach) is the founder of QuantSoar, bringing expertise in SEO, web development, and technical analytics to build an AI-powered investment platform accessible to retail investors worldwide.

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Investment Disclaimer: Tax treatment can depend on tax residence, account type, and tax year. This information is general and is not personal tax or investment advice. SEC

Data: Yahoo Finance / SEC EDGAR / Alpha Vantage / Finnhub. AI outputs verified against source data.