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AMBA (Ambarella) PS Ratio : 11.75 (As of Dec. 12, 2024)


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What is Ambarella PS Ratio?

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Ambarella's share price is $72.31. Ambarella's Revenue per Share for the trailing twelve months (TTM) ended in Oct. 2024 was $6.16. Hence, Ambarella's PS Ratio for today is 11.75.

Warning Sign:

Ambarella Inc stock PS Ratio (=11.73) is close to 2-year high of 11.73

The historical rank and industry rank for Ambarella's PS Ratio or its related term are showing as below:

AMBA' s PS Ratio Range Over the Past 10 Years
Min: 3.99   Med: 7.81   Max: 25.2
Current: 11.65

During the past 13 years, Ambarella's highest PS Ratio was 25.20. The lowest was 3.99. And the median was 7.81.

AMBA's PS Ratio is ranked worse than
86.33% of 995 companies
in the Semiconductors industry
Industry Median: 2.88 vs AMBA: 11.65

Ambarella's Revenue per Sharefor the three months ended in Oct. 2024 was $1.99. Its Revenue per Share for the trailing twelve months (TTM) ended in Oct. 2024 was $6.16.

Warning Sign:

Ambarella Inc revenue per share has been in decline over the past 3 years.

During the past 12 months, the average Revenue per Share Growth Rate of Ambarella was -6.00% per year. During the past 3 years, the average Revenue per Share Growth Rate was -4.10% per year. During the past 5 years, the average Revenue per Share Growth Rate was 0.10% per year. During the past 10 years, the average Revenue per Share Growth Rate was 0.40% per year.

During the past 13 years, Ambarella's highest 3-Year average Revenue per Share Growth Rate was 36.20% per year. The lowest was -9.40% per year. And the median was 7.70% per year.

Back to Basics: PS Ratio


Ambarella PS Ratio Historical Data

The historical data trend for Ambarella's PS Ratio 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 PS Ratio Chart

Ambarella Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.55 14.67 15.45 10.21 9.26

Ambarella Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
PS Ratio 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 6.87 9.26 8.45 9.70 9.13

Competitive Comparison of Ambarella's PS Ratio

For the Semiconductor Equipment & Materials subindustry, Ambarella's PS Ratio, along with its competitors' market caps and PS Ratio 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 PS Ratio Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Ambarella's PS Ratio distribution charts can be found below:

* The bar in red indicates where Ambarella's PS Ratio falls into.



Ambarella PS Ratio Calculation

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.

Ambarella's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=72.31/6.156
=11.75

Ambarella's Share Price of today is $72.31.
Ambarella's Revenue per Share for the trailing twelve months (TTM) ended in Oct. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $6.16.

* 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.

It can also be calculated from the numbers for the whole company:

PS Ratio=Market Cap/Revenue

The Revenue here is for the trailing 12 months.


Ambarella  (NAS:AMBA) PS Ratio Explanation

The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.

When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.

Similar to the PE Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PS Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.


Ambarella PS Ratio Related Terms

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Ambarella Business Description

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