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AMBA (Ambarella) Intrinsic Value: Projected FCF : $16.16 (As of Dec. 11, 2024)


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What is Ambarella Intrinsic Value: Projected FCF?

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2024-12-11), Ambarella's Intrinsic Value: Projected FCF is $16.16. The stock price of Ambarella is $72.22. Therefore, Ambarella's Price-to-Intrinsic-Value-Projected-FCF of today is 4.5.

The historical rank and industry rank for Ambarella's Intrinsic Value: Projected FCF or its related term are showing as below:

AMBA' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 1.12   Med: 2.29   Max: 7.54
Current: 4.47

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Ambarella was 7.54. The lowest was 1.12. And the median was 2.29.

AMBA's Price-to-Projected-FCF is ranked worse than
77.47% of 586 companies
in the Semiconductors industry
Industry Median: 1.88 vs AMBA: 4.47

Ambarella Intrinsic Value: Projected FCF Historical Data

The historical data trend for Ambarella's Intrinsic Value: Projected FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Ambarella Intrinsic Value: Projected FCF Chart

Ambarella Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 30.32 28.64 25.57 22.51 17.65

Ambarella Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
Intrinsic Value: Projected FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 19.66 17.65 15.91 16.16 -

Competitive Comparison of Ambarella's Intrinsic Value: Projected FCF

For the Semiconductor Equipment & Materials subindustry, Ambarella's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Ambarella's Price-to-Projected-FCF Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Ambarella's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Ambarella's Price-to-Projected-FCF falls into.



Ambarella Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get Ambarella's Free Cash Flow(6 year avg) = $23.58.

Ambarella's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Oct24)*0.8)/Shares Outstanding (Diluted Average)
=(9.5203515959648*23.58368+554.295*0.8)/41.479
=16.10

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Ambarella  (NAS:AMBA) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

Ambarella's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=72.22/16.103592794588
=4.48

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Ambarella Intrinsic Value: Projected FCF Related Terms

Thank you for viewing the detailed overview of Ambarella's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Ambarella Business Description

Industry
Traded in Other Exchanges
Address
3101 Jay Street, Santa Clara, CA, USA, 95054
Ambarella Inc is a developer of semiconductor processing solutions for high-definition video capture, sharing, and display. The firm's solutions are sold to original design manufacturers and original equipment manufacturers to be designed for use in infrastructure broadcast encoders, wearable device cameras, automotive cameras, and security cameras. Ambarella's system-on-a-chip designs, based on its proprietary technology platform, are highly configurable to applications in various end markets. Geographical presence in Taiwan, Asia Pacific, Europe, North America, and the United States. The firm derives the majority of its revenue from Taiwan.
Executives
Christopher Day officer: See Remarks 2975 SAN YSIDRO WAY, SANTA CLARA CA 95051
Christopher B Paisley director 14870 THREE OAKS COURT, SARATOGA CA 95070
Elizabeth M Schwarting director 3101 JAY STREET, SANTA CLARA CA 95054
Chi-hong Ju officer: Sr. Vice President, Systems 3101 JAY STREET, SANTA CLARA CA 95054
Chan W Lee officer: Chief Operating Officer 3101 JAY STREET, SANTA CLARA CA 95054
Feng-ming Wang director, officer: Chief Executive Officer 2975 SAN YSIDRO WAY, SANTA CLARA CA 95051
Leslie Kohn director, officer: Chief Technology Officer 2975 SAN YSIDRO WAY, SANTA CLARA CA 95051
Yun-lung Chen officer: Vice President, Sales 3101 JAY STREET, SANTA CLARA CA 95054
Brian C White officer: CFO C/O INTEGRATED DEVICE TECHNOLOGY, INC., 6024 SILVER CREEK VALLEY ROAD, SAN JOSE CA 95138
David Jeffrey Richardson director LSI LOGIC CORP, 1621 BARBER LANE, MILPITAS CA 95035
Kevin C Eichler officer: CFO C/O AMBARELLA, INC., 3101 JAY STREET, SANTA CLARA CA 95054
Andrew W Verhalen director C/O MATRIX PARTNERS, 250 HOMER AVE SUITE 201, PALO ALTO CA 94301
Greef-safft Anne De director 11 KEEWAYDIN DRIVE, SUITE 300, SALEM NH 03079
Teresa H Meng director 2535 VALLEJO STREET, SAN FRANCISCO CA 94123
Chenming Hu director 2060 PEBBLE DRIVE, ALAMO CA 94507